What is Lump Sum D?
Lump sum D represents the tax-free amount of only a genuine redundancy payment or approved early retirement scheme payment, up to the tax-free limit, based on the employee’s complete years of service, for an employee up to their age-pension age.
Lump sum D refers specifically to the tax-free amount of a genuine redundancy payment or an approved early retirement scheme payment. This tax-free amount is limited to an amount determined by the employee’s complete years of service and is applicable to employees up to their age-pension age.
How does it work?
It’s important to report lump sum D amounts, even if they are the only amount made to your employee during the fiscal year. This requirement differs from STP Phase 1.
Lump sum D on the PAYG payment summary represents the tax-exempt component of redundancy or early retirement payments.
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