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.