Income Tax Assessment Act 1936

S 26AC repealed by No 15 of 2007, s 3 and Sch 1 item 2, applicable to the 2007-2008 income year and later years. S 26AC formerly read:

SECTION 26AC AMOUNTS RECEIVED ON RETIREMENT OR TERMINATION OF EMPLOYMENT IN LIEU OF ANNUAL LEAVE  
26AC(1) [Lump sum paid re unused annual leave]  

This section applies to any amount paid after 15 August 1978 (whether voluntarily, by agreement or by compulsion of law) to a taxpayer in a lump sum in consequence of the retirement of the taxpayer after that date from any office or employment or in consequence of the termination after that date of any office or employment of the taxpayer, being an amount that is paid in respect of unused annual leave or in respect of unused annual leave and a bonus, loading or other additional payment relating to that leave.

26AC(2) [Lump sum assessable]  

Where an amount to which this section applies is paid to a taxpayer in a year of income, that amount shall be included in the assessable income of the taxpayer of the year of income.

26AC(3) [Retirement, etc, before entitlement to annual leave]  

The reference in subsection (1) to the payment to a taxpayer in consequence of the retirement of the taxpayer from any office or employment or in consequence of the termination of any office or employment of the taxpayer of a lump sum in respect of unused annual leave shall be read as including a reference to the payment to the taxpayer in consequence of that retirement or termination, as the case may be, of an amount in respect of, or an amount calculated directly or indirectly by reference to, annual leave, or annual leave and a bonus, loading or other additional payment relating to annual leave, to which the taxpayer was not entitled immediately before that retirement or termination, as the case may be, but to which the taxpayer would have become entitled, or that would ordinarily have been granted to the taxpayer, at a later time if the taxpayer had continued in that office or employment for a period after the time of the retirement or termination, as the case may be.

26AC(4) [ " annual leave " defined]  

In this section, " annual leave " means:

(a) leave described as annual leave, recreation leave or annual holidays, being leave to which a person has an entitlement by virtue of a law of the Commonwealth or of a State or Territory, an award, determination or industrial agreement in force under any such law, a contract of employment or the terms of appointment to an office;

(b) leave described otherwise than as annual leave, recreation leave or annual holidays, being leave to which a person has an entitlement by virtue of such a law, award, determination, industrial agreement or contract or by virtue of the terms of appointment to an office and the entitlement to which is determined by reference to matters similar to matters by reference to which entitlement to leave referred to in paragraph (a) is ordinarily determined; or

(c) leave that may be made available to a person as a privilege, being leave the availability of which is ordinarily determined by reference to matters similar to matters by reference to which entitlement to leave referred to in paragraph (a) or (b) is ordinarily determined.

S 26AC inserted by No 123 of 1978.