Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes)
Payees who cease working for youPayees who cease working for you
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Payees who cease working for you
Lump sum payments made when a payee ceases working for you are subject to a different rate of withholding.
If a payee has unused annual leave, leave loading or long service leave, and they are resigning, see PAYG withholding - unused leave payments on termination of employment tax table (NAT 3351).
If they are leaving for other reasons the payments made may be eligible termination payments and you should refer to PAYG withholding – eligible termination payments tax table (NAT 3349).
Do not withhold any amount for HECS, HELP or Financial Supplement debts from lump sum termination payments.