Issue
When lodging Employment Termination Payments (ETPs) in LodgeiT, you may encounter the prompt:
This is an ATO requirement that cannot be overridden by LodgeiT.
What This Means
- The taxable component of an ETP is the portion subject to tax and must be reported as a numeric value of at least $1.Learn more
- ETPs that are 100% tax-free (no taxable component) should not be reported at all in the tax return.
How to Resolve This
- If you have an ETP line item with a taxable component amount of zero or blank, delete this line item by clicking the trash bin icon in the software.
- Only report ETPs where the taxable component exceeds $1 as required by the ATO.
Additional Advice
If uncertain whether an ETP is taxable or exempt, it is recommended to contact the ATO directly for clarification to ensure correct reporting.