employment termination payment
An employment termination payment is a payment made in consequence of the termination of a relationship with an employer after 30 June 2007. The benefit can be either a life benefit termination payment or a death benefit termination payment.
An employment termination payment consists of a tax free component, taxable component, invalidity segment and a pre-July 83 segment. Differing taxation arrangements apply to each payment, depending on the components and the recipient. Section 82-135 of the Income Tax Assessment Act 1977 lists 12 items that are not employment termination payments.