Income Tax (Transitional Provisions) Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-40 - RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS  

Division 82 - Pre-10 May 2006 entitlements to life benefit termination payments  

Subdivision 82-D - Directed termination payments made to superannuation and other entities  

SECTION 82-10F   Directed termination payments  

82-10F(1)    
A transitional termination payment (or part of such a payment) is a directed termination payment if:

(a) the individual chooses, in accordance with this section, to direct the payment (or part of the payment) to be made; and

(b) the payment (or part of the payment) is made on the individual's behalf as directed.

Choice to make payment

82-10F(2)    
An individual may choose, within 30 days after a pre-payment statement about a transitional termination payment is given to the individual under section 82-10E , to direct the payer to use all or part of the payment to make a payment on behalf of the individual:

(a) to a complying superannuation plan; or

(b) to purchase a superannuation annuity.

82-10F(3)    
To make the choice, the individual must:

(a) make it in the approved form; and

(b) give the completed form to the payer.

82-10F(4)    
The payer must, immediately after receiving a completed form under subsection (3):

(a) give the entity (or entities) to which payment is directed written notice of the amount that is to be paid, and of the tax free component of the amount; and

(b) comply with the direction (or directions) in the form.