Question 3 - Employer Lump sum payments

This question is about any lump sum payments you received from your employer for unused annual leave or unused long service leave.

 

STOP STOP

Do not show at this item:

·early retirement scheme payments and genuine redundancy payments shown as 'Lump sum D' on  your payment summary. These amounts are often paid at the same time as an employment termination payment (ETP). Lump sum D amounts are not taxed and are not shown as income at any item on your tax return. If you received an ETP, complete item 4 Employment termination payments (ETPs)
·employer lump sum payments in arrears shown as 'Lump sum E' on your PAYG payment summary - individual non-business. These amounts are dealt with at item 24 Other income
·lump sump payments in arrears shown on your PAYG payment summary - superannuation income stream. These amounts are dealt with at item 7 Australian annuities and superannuation income streams.

 

ANSWERING THIS QUESTION

You will need your PAYG payment summary - individual non-business, PAYG payment summary - foreign employment or a comparable statement from your payer showing an amount at 'Lump sum A' or 'Lump sum B' where relevant.
 

If you do not have all of your payment summaries or comparable statements, or if any of your comparable statements do not show an amount received during the year that is either a 'Lump sum A' or a 'Lump sum B' you must contact your employer or payer. If you are unsuccessful in obtaining any of these, more information about making a statutory declaration is available from the ATO at www.ato.gov.au

 

If you have received a PAYG payment summary - foreign employment showing an amount at 'Lump sum A' on which foreign tax has been paid, you will also need to include the amount at U in item 20.

 

COMPLETING THIS ITEM

Lump sum payments can be entered directly into the form or using combined worksheet for items 1,2,3 and 10. Follow the steps if you choose to use the worksheet:

STEP 1

Click on the "Lump sum payments" underlined text to open the combined "items 1,2,3,10..." worksheet.

STEP 2

Enter the amounts shown at A on your payment summaries, signed copies, letters or statements from your payers under the column "Lump A". Do not include any amounts already included at question 1 or 2.

STEP 3

If you left the job because of genuine redundancy, invalidity or under an approved early retirement scheme, select the letter R from the "Code" box. If you left the job for any other reason, select the letter T from the "Code" box.

Enter the amounts shown at B on your payment summaries, signed copies, letters or statements from the payers under the column "Lump B". You do not need to work out 5%, Tax Assistant does this automatically.

If you also need to enter details for items 2 - Allowances or 10 - Fringe benefits then they can also be entered in here.

STEP 4

If you received more than one lump sum payment then repeat from step 2.

STEP 5

Save the worksheet and close it. Tax Assistant will automatically calculate the totals and transfer them to R and H at item 3. If you also included amounts for allowances or fringe benefits then they also will be transferred to their respective fields.