Why is my TNVR payment treated as an ETP rather than a GRP?

An ETP is a payment made in connection with the end of a person’s employment. A GRP is a particular type of termination payment that must meet specific requirements to receive concessional taxation treatment.

It has come to our attention that payments made under TNVR arrangements should correctly be treated as ETPs, rather than GRPs, for taxation purposes.

The revised MPSS provides for a head of agency to approve an additional payment, where applicable, to provide a comparable net financial outcome at the time of payment.

Individual circumstances can differ, and employees may wish to seek independent financial or taxation advice.