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Codyeah(Newbie)Newbie
30 Aug 2022

Hi

I was made redundancy last year and was paid ETP.

It was just standard, based on the length of employment (6 years).

I thought it was not a golden handshake type or gratuity, but Code O (taxable)?

I thought it should be Code R, genuine redundancy non taxable, but the ex-employer did it as Code O (and asked them about it but no confirmation yet).

Which is correct?





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JodieR_ATO(Community Support)Community Support
31 Aug 2022

Hi @Codyeah,


If you've received an ETP it's up to your employer if it's a genuine redundancy and there's a tax free amount. A genuine redundancy is where the job you were doing no longer exists.


The way your employer makes the payment to you will also determine the tax payable and the code they use. You can take this up with them, which you've already done. If you don't think it's correct you can speak with Fairwork.

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Most helpful reply

JodieR_ATO(Community Support)Community Support
31 Aug 2022

Hi @Codyeah,


If you've received an ETP it's up to your employer if it's a genuine redundancy and there's a tax free amount. A genuine redundancy is where the job you were doing no longer exists.


The way your employer makes the payment to you will also determine the tax payable and the code they use. You can take this up with them, which you've already done. If you don't think it's correct you can speak with Fairwork.

Codyeah(Newbie)Newbie
2 Sept 2022

Jodie, much appreciated!

The employer's action was very slow but they just told me to change the appropriate CODE (R), thanks anyway!




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ETP Employment termination payments CODE O or R? | ATO Community