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 82-10G  

82-10G   Directed termination payments not assessable income and not exempt income  

A directed termination payment made on your behalf, that you are taken to receive under section 80-20 of the Income Tax Assessment Act 1997 , is not assessable income and is not exempt income.

Note 1:

Directed termination payments are paid into a complying superannuation plan (or to purchase a superannuation annuity) on your behalf: see section 82-10F .

Note 2:

The taxable component of the payment is included in the assessable income of the entity receiving the payment: see section 295-190 of the Income Tax Assessment Act 1997 .

Note 3:

In addition, income tax may be payable on a benefit you later receive from the plan to which the directed termination payment is made: see Divisions 301 to 307 of the Income Tax Assessment Act 1997 .