Retroactive lump-sum payments

If you’ve received a retroactive lump-sum payment, you may be eligible for a special tax calculation to provide tax relief. The calculation will effectively recalculate your tax liability by assuming the lump-sum payment had been taxed in the year(s) to which it relates. It will only be applied where the calculation results in a decreased tax liability.

The following types of income qualify for this calculation:

  • periodic superannuation or pension benefits
  • Employment Insurance benefits
  • spousal or child support amounts
  • employment income payments received under a court judgement or arbitration award

The lump-sum payment must be at least $3,000, excluding any interest amount included in the payment.