Employment before 1 July 1983 (Tax Free Component)
Nov 16, 2024
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🎯 The reporting of payments for Employment before 1 July 1983 (Tax Free Component) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Employment before 1 July 1983 (Tax Free Component) continues to be reported under ETP Type Code = R, O, S or P.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Employment before 1 July 1983 (Tax Free Component) is applicable when the Payee has ceased employment due to Voluntary Cessation, Dismissal, Contract Cessation, Transfer, Ill Health or Redundancy and receives a payment that relates to employment before 1 July 1983 per Table A: Withholding rates for ETPs.
Employment before 1 July 1983 (Tax Free Component) uses the $ (or % of Rate Per Hour) set within the Pay Rate and Leave Entitlements are not applicable. Payments with this pay type may be considered either Taxable or Non-Taxable, however, they are not W1 (Total of Salary, Wages & other payments) or Ordinary Time Earnings (OTE).
