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Termination payment is declaring incorrect PAYG on STP Submission

Date: 11 July 2026

Status: Under Investigation

Reference: ADV-70193

 

Issue

When additional termination payments are processed over multiple financial years for a single termination term, the Tax withheld amount will be incorrect for the later financial year submission.

For example:

1st termination payment: FY 24. tax withheld amounts correct.

2nd termination payment: FY25. incorrect tax withheld.

 

Workaround

The workaround is to create a second employee profile and process the additional termination payment through that profile.