Definitions for "Eligible Termination Payment"
This term generally refers to a lump sum payment from an employer, superannuation fund, approved deposit fund or deferred annuity. It also covers lump sum payments arising from a commutation of an annuity/pension and a withdrawal from a rollover fund. Lump Sum Payments of Long Service and Annual Leave are not usually classified as ETPs and are subject to their own tax rules.
A payment made by an employer, superannuation fund, rollover fund or retirement savings account. In some cases, you may be able to cash some of your superannuation Eligible Termination Payment, however you will forfeit the tax concessions that would apply if you rolled it over into a superannuation fund. Calculate the amount of tax payable on your Eligible Termination Payment with the ETP Tax Calculator.
Lump Sum payment from a superannuation fund or RSA. Depending on the circumstances, the benefit may be able to be paid directly to the member or may be rolled over to another fund. An ETP may also be paid by an employer in respect of certain entitlements when a member ceases employment. See Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936