Hello,
I understand that unused TOIL is treated as an ETP upon termination. I was wondering whether the same applies to a flex balance payout.
In our company, flex is not normally cashed out — employees are expected to either use it or forfeit any balance in excess of 15 hours. Given this, I would appreciate clarification on how a flex payout at termination should be classified.
Thank you.
Hiya @Leipay 👋
It will depend on the purpose and conditions of the payment. I found this ATO Edited Private Advice on flex balance on termination very interesting. It may be similar to your situation. These documents are the anonymised Private Rulings, removing all identifying details.
Let me know what you think. The ATO response identifies all the rulings and legislation that is relevant to determining the answer 😉
Deanne
Hiya @Leipay 👋
It will depend on the purpose and conditions of the payment. I found this ATO Edited Private Advice on flex balance on termination very interesting. It may be similar to your situation. These documents are the anonymised Private Rulings, removing all identifying details.
Let me know what you think. The ATO response identifies all the rulings and legislation that is relevant to determining the answer 😉
Deanne
Thank you very much for sharing the Edited Private Advice — I agree it’s an interesting ruling and helpful in understanding how flex credits are characterised. Based on our company’s arrangements, my understanding is that a flex balance payout on termination would fall within the definition of an ETP.
Thanks again for your assistance.
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