Employment Termination Payments and Codes – From the ATO
Following changes to the taxation of employment termination payments (ETP) on 1 July 2012, we updated the PAYG payment summary – employment termination payment to include new ETP codes. The codes describe the type of payment and will ensure the correct rate of tax is applied.
If you have clients paying ETPs in this income year, they need to use the new PAYG payment summary – employment termination payment and codes.
If you have clients receiving an ETP in this income year, they must show the ETP code in their 2013 tax return so our systems know what type of payment it is. If your clients do not receive the new payment summary with the ETP code, they will need to contact the payer.
For more information, refer to Taxation of termination payments.
Changes affecting your employer clients from 1 July 2013.
Employers across Australia will have new superannuation obligations under a range of reforms. From 1 July 2013, they will need to:
• increase the minimum rate for super guarantee payments on behalf of employees from 9% to 9.25%
• start making super guarantee payments for employees aged 70 years or older, as the existing upper age limit will be removed.
We are sending information out to all employers in April to raise awareness of these (and future) changes.
To find out more, refer to Getting your employer clients ready for changes to super.