Withholding Calculations

The logic that determines tax withholding depends on the category of ETP as defined by the ATO.

Withholding calculations for some types of life benefit ETPs are subject only to the ETP cap. These payments are called Excluded because they are excluded from the Whole of Income cap. These Excluded payments are printed on the payment summary with ETP print code of R.

The Non-Excluded types of ETPs require calculation of both the ETP cap and the Whole of Income cap. For these types, the smaller of the two results is used in the final withholding calculation. These Non-Excluded payments are printed on the payment summary with ETP print code of O.