Employment termination payments
Employment termination payments generally may not be rolled over and must be taken in cash. However, transitional rules apply for employment termination payments that are made under an existing employment contract which was in place before 10 May 2006 where the payment is made prior to 1 July 2012. Payments made into superannuation under these transitional rules can qualify for a limited exclusion from the concessional contributions cap subject to certain conditions and are known as directed termination payments. Directed Termination Payments are subject to the eligibility rules for contributions. To have a contribution treated as a Directed Termination Payment, your employer should notify us using the applicable ATO form.
