Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 3   AMENDMENTS RELATING TO SUPERANNUATION

Part 2   INCOME TAX ASSESSMENT ACT 1936

Division 10   Lump sum payments made in consequence of the termination of overseas projects or overseas employment

64   Subsection 27A(1)

Insert:

"'approved project' has the same meaning as in section 23AF;

'eligible foreign remuneration' has the same meaning as in section 23AF;

'exempt resident foreign termination payment', in relation to a taxpayer, means a payment made in respect of the taxpayer:

(a) that:

(i) is made otherwise than from a superannuation fund (as defined by subsection 6(1)), in consequence of the termination of the taxpayer's employment or the termination of the qualifying service in relation to a project (whether or not the qualifying service was terminated in consequence of the termination of the project); and

(ii) would, apart from paragraphs (ka) and (ma) of the definition of 'eligible termination payment', be an eligible termination payment; or

(b) that:

(i) is made from an eligible non-resident non-complying superannuation fund within 6 months after the termination of the employment or qualifying service mentioned in subparagraph (a)(i); and

(ii) had the fund been a superannuation fund, would, apart from paragraphs (ka) and (ma) of the definition of 'eligible termination payment', be an eligible termination payment;

where:

(c) if the payment related to the termination of employment:

(i) the employment was service in a foreign country as the holder of an office or in the capacity of an employee; and

(ii) the taxpayer was a resident of Australia throughout the period of the employment; and

(iii) the taxpayer's foreign earnings from the employment (other than the payment) are exempt from tax under section 23AG; and

(iv) the payment related solely to the period of the employment; and

(v) the payment is not exempt from taxation under the law of the foreign country; or

(d) if the payment related to the termination of qualifying service:

(i) the project was an approved project; and

(ii) the taxpayer was a resident of Australia throughout the period of the qualifying service; and

(iii) eligible foreign remuneration (other than the payment) derived by the taxpayer that was attributable to the qualifying service is exempt from tax under section 23AF; and

(iv) the payment related solely to the period of the qualifying service; and

(v) the payment is not exempt from taxation under the law of the country from sources in which the eligible foreign remuneration in relation to the qualifying service was derived;

'exempt non-resident foreign termination payment', in relation to a taxpayer, means:

(a) a payment made in respect of the taxpayer to which the following subparagraphs apply:

(i) the payment is made otherwise than from a superannuation fund (as defined by subsection 6(1)) in consequence of the termination of the taxpayer's employment;

(ii) the payment would, apart from paragraphs (ka) and (ma) of the definition of 'eligible termination payment', be an eligible termination payment;

(iii) the employment was service in a foreign country as a holder of an office or in the capacity of an employee;

(iv) the payment related solely to a period of the employment during which the taxpayer was not a resident of Australia; or

(b) a payment made in respect of the taxpayer to which the following subparagraphs apply:

(i) the payment is made from an eligible non-resident non-complying superannuation fund within 6 months after the taxpayer became a resident of Australia;

(ii) had the fund been a superannuation fund, the payment would, apart from paragraphs (ka) and (ma) of the definition of 'eligible termination payment' in subsection 27A(1), have been an eligible termination payment;

(iii) the period to which the payment relates does not include any period other than a period in which the taxpayer was a non-resident or a period between the time when the taxpayer became a resident and the time when the taxpayer received the payment;

(iv) the benefit does not exceed the amount that was properly payable out of the fund to the taxpayer at the time when the payment was made;

'foreign earnings' has the same meaning as in section 23AG;

'qualifying service' has the same meaning as in section 23AF;".