Is the termination a Bona Fide Redundancy?

All terminations that are considered Bona Fide Redundancies require ETPs. The ATO considers a termination to be a Bona Fide Redundancy if one of these criteria is met:

• The employee will no longer be employed by the organization in any capacity.

• The holding of an office is terminated.

If the termination does not meet either of these criteria, the termination is not considered a Bona Fide Redundancy and might not require an ETP. However, if the types of pay that are included in the termination payment are ETP-eligible, you must complete the ETP process.

If you are uncertain about whether the termination is considered a Bona Fide Redundancy, contact the local ATO office for additional information.