Income Tax Assessment Act 1936

Subdiv AA (heading) substituted by No 15 of 2007, s 3 and Sch 1 item 59, applicable to the 2007-2008 income year and later years. The heading formerly read:

Subdivision AA - Superannuation, termination of employment and kindred payments

Subdiv AA inserted by No 47 of 1984.

S 27F repealed by No 15 of 2007, s 3 and Sch 1 item 3, applicable to the 2007-2008 income year and later years. S 27F formerly read:

SECTION 27F BONA FIDE REDUNDANCY PAYMENTS  
27F(1) [Termination amount]  

Where:

(a) an eligible termination payment is made in relation to a taxpayer in consequence of the dismissal of the taxpayer from any employment at any time (in this section referred to as the " termination time " ) by reason of the bona fide redundancy of the taxpayer;

(aa) if the eligible termination payment is made on or after 1 July 1994 - the payment was not made to the taxpayer from an eligible superannuation fund;

(b) the termination time was before:

(i) if there was a date before the sixty-fifth anniversary of the birth of the taxpayer on which the termination of the employment of the taxpayer would necessarily have occurred by reason of the taxpayer attaining a particular age or completing a particular period of service - that date; or

(ii) in any other case - the sixty-fifth anniversary of the birth of the taxpayer;

(c) if the Commissioner, having regard to any connection between the employer and the taxpayer and to any other relevant circumstances, is satisfied that the employer and the taxpayer were not dealing with each other at arm ' s length in relation to the termination of the employment of the taxpayer - the amount of the eligible termination payment does not exceed the amount of an eligible termination payment that could reasonably be expected to have been made in relation to the taxpayer if the employer and the taxpayer had been dealing with each other at arm ' s length in relation to the termination of the employment of the taxpayer; and

(d) there was, at the termination time, no agreement between the taxpayer and the employer, or the employer and another person, to employ the taxpayer after the termination time;

so much of the eligible termination payment as exceeds the amount (in this section referred to as the " termination amount " ) of an eligible termination payment that could reasonably be expected to have been made in relation to the taxpayer had he voluntarily retired from that employment at the termination time is a bona fide redundancy payment in relation to the taxpayer.

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History

S 27F(1) amended by No 208 of 1992 and No 129 of 1985.

27F(2) [ " forgone benefit part " ]  

For the purposes of subsection (1), where:

(a) in the opinion of the Commissioner, it is appropriate to regard a part (in this subsection referred to as the " forgone benefit part " ) of an eligible termination payment made in relation to a taxpayer as having been made in lieu of superannuation benefits to which the taxpayer may have become entitled at the termination time or a later time; and

(b) the forgone benefit part would not, but for this subsection, be included in the termination amount;

the termination amount shall include the forgone benefit part.

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History

S 27F(2) inserted by No 129 of 1985.

27F(3) [Para (ja) of definition of " eligible termination payment " ]  

For the purposes of this section, it is to be assumed that paragraph (ja) of the definition of eligible termination payment in subsection 27A(1) had not been enacted.

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History

S 27F(3) inserted by No 208 of 1992.

S 27F inserted by No 47 of 1984.