ETP (Employment Termination Payment) Calculator Australia
Calculate tax on employment termination payments including genuine redundancy, life benefit ETPs, and death benefit ETPs for 2025-26.
01 —INPUTS
Select the type of employment termination payment
The total gross termination payment
Completed years of continuous service
Used to estimate other taxable income for the whole-of-income cap
Tax-free limit: $78,620.00 (base + 28,620.00 per year). Amounts above this are taxed as an ETP.
02 —RESULTS
Net (After Tax)$50,000.00
Breakdown
Gross Payment$50,000.00
Tax-Free Component$50,000.00
Taxable Component$0.00
How this works: The tax-free portion of a genuine redundancy is a base amount plus a per-year-of-service amount. The remainder is taxed as an ETP at 17% (based on preservation age) up to the cap, and 47% above the cap.
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Tax Accuracy & Sources
This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.
What is an Employment Termination Payment?
An ETP is a lump sum payment you receive when your employment ends. It can include payments for unused sick leave, payments in lieu of notice, and gratuities. Genuine redundancy payments have different tax treatment.
How much of a genuine redundancy is tax-free?
The tax-free component is a base amount ($12,524 for 2025-26) plus an additional amount per year of service ($6,264 per year). Any amount above this is taxed as an ETP.
How are ETPs taxed?
ETP amounts up to the ETP cap ($245,000) are taxed at 17% if you're at or above preservation age (55+), or 32% if you're below. Amounts above the cap are taxed at 47%. The whole-of-income cap ($180,000) may also apply.