TERMINATION PAYMENTS TAX (ASSESSMENT AND COLLECTION) ACT 1997 (REPEALED)

PART 1 - PRELIMINARY  

SECTION 1   1   SHORT TITLE  
This Act may be cited as the Termination Payments Tax (Assessment and Collection) Act 1997.

SECTION 2   2   COMMENCEMENT  
This Act commences on the day on which it receives the Royal Assent.

SECTION 3   ACT TO BIND CROWN  

3(1)  
This Act binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory, of the Northern Territory and of Norfolk Island.

3(2)  
Nothing in this Act permits the Crown to be prosecuted for an offence.

SECTION 4   4   EXTENSION TO TERRITORIES  
This Act extends to Norfolk Island, the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island.

SECTION 5   5   OBJECT OF ACT  
The object of this Act is to provide for the assessment and collection of the termination payments surcharge. The surcharge is payable on payments of kinds commonly known as golden handshakes that are made to high-income taxpayers in consequence of the termination of their employment.

SECTION 6   6   OUTLINE OF ACT  
The following is a simplified outline of this Act.

PART 2 - LIABILITY TO SURCHARGE  

SECTION 7   APPLICATION  

7(1)   Act provides for surcharge on termination payments.  

This Act provides for the payment of surcharge on certain payments ( termination payments ) made to or for high-earning taxpayers (see subsection 8(2)) in consequence of the termination of their employment.

7(2)   Definition of termination payment .  

A termination payment is a payment that:

(a) is made after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996 and before 1 July 2005; and

(b) is the retained amount of an eligible termination payment for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act because of paragraph (a) of the definition of eligible termination payment in subsection 27A(1) of that Act;

but does not include the retained amount of any post-June 1994 invalidity component or CGT exempt component of such a payment or an eligible termination payment from an employee share acquisition scheme.

SECTION 8   TERMINATION PAYMENTS SURCHARGE  

8(1)   Surcharge payable on termination payments.  

Subject to subsection (1A), termination payments surcharge is payable on any termination payments made to or for a taxpayer.

8(1A)   No surcharge is payable on excessive part of termination payments.  

In the case of a termination payment made after 7.30 pm by legal time in the Australian Capital Territory on 22 May 2001, surcharge is not payable on any part of the payment that the Commissioner has determined under section 140R of the Income Tax Assessment Act to be in excess of the RBLs of the taxpayer.

8(2)   No surcharge is payable unless adjusted taxable income is greater than surcharge threshold.  

Surcharge is payable only if the taxpayer's adjusted taxable income for the financial year in which the payments are made is greater than the surcharge threshold for the financial year.

8(3)   No surcharge is payable by residents of external Territories.  

Surcharge is not payable on any termination payments made to or for a taxpayer in a financial year if the taxpayer is a Territory resident for the purposes of Division 1A of Part III of the Income Tax Assessment Act as it applies to the year of income that comprises that financial year.

8(4)   Taxpayer liable for surcharge.  

The taxpayer is liable to pay the surcharge.

SECTION 9   SURCHARGE PAYABLE ONLY ON PART OF CERTAIN TERMINATION PAYMENTS  

9(1)  
This section applies if a termination payment has been or is made to or for a taxpayer after 20 August 1996.

9(2)  
In the case of a termination payment made at or before 7.30 pm by legal time in the Australian Capital Territory on 22 May 2001, surcharge is payable only on the part of the termination payment that is worked out using the formula:

Post-20 August 1996 period Total period

×

Termination payment

9(3)  
In the case of a termination payment made after 7.30 pm by legal time in the Australian Capital Territory on 22 May 2001, surcharge is payable only on the part of the termination payment that is worked out using the formula:

9(4)  
For the purposes of this section:

excessive component
means the part (if any) of the termination payment that the Commissioner has determined under section 140R of the Income Tax Assessment Act to be in excess of the RBLs of the taxpayer.

post-20 August 1996 period
means the number of days in the period of the taxpayer's employment for which the termination payment was made that occurred after 20 August 1996.

total period
means the number of days in the period of the taxpayer's employment for which the termination payment was made.

SECTION 10   SURCHARGE THRESHOLD  

10(1)   Surcharge threshold for 1996-97 financial year.  

The surcharge threshold for the 1996-97 financial year is $70,000.

10(2)   Surcharge threshold for later financial year.  

The surcharge threshold for a later financial year is the amount calculated using the formula:

Previous surcharge threshold × Indexation factor

where:

previous surcharge threshold means the surcharge threshold for the financial year immediately before the financial year for which the surcharge threshold is being calculated.

indexation factor means the number calculated under subsections (4) and (5) for the financial year for which the surcharge threshold is being calculated.

10(3)   Rounding off of amount of surcharge threshold.  

If an amount worked out for the purposes of subsection (2) is an amount of dollars and cents:

(a) if the number of cents is less than 50 - the amount is to be rounded down to the nearest whole dollar; or

(b) otherwise - the amount is to be rounded up to the nearest whole dollar.

10(4)   Indexation factor.  

The indexation factor for a financial year is the number calculated, to 3 decimal places, using the formula:

Index number for last quarter in current March year   Index number for last quarter in previous March year

where:

index number
, for a quarter, means the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter published by the Australian Statistician.

current March year
means the period of 12 months ending on 31 March immediately before the financial year for which the surcharge threshold is being calculated.

previous March year
means the period of 12 months immediately before the current March year.

10(5)   Rounding up of indexation factor.  

If the number calculated under subsection (4) for a financial year would, if it were worked out to 4 decimal places, end with a number greater than 4, the number so calculated is increased by 0.001.

10(6)   Change in index numbers.  

If at any time, whether before or after the commencement of this Act, the Australian Statistician has published or publishes an index number for a quarter in substitution for an index number previously published for the quarter, the publication of the later index number is to be disregarded.

10(7)   Surcharge threshold to be published.  

The Commissioner must publish before, or as soon as practicable after, the start of the 1997-98 financial year, and before the start of each later financial year (being a financial year that ends before 1 July 2005), the surcharge threshold for the financial year.

Note:

For the purposes of this section, Australian Statistician means the Australian Statistician referred to in subsection 5(2) of the Australian Bureau of Statistics Act 1975.

PART 3 - ASSESSMENT AND COLLECTION OF SURCHARGE  

SECTION 11   ASSESSMENT OF LIABILITY TO PAY SURCHARGE  

11(1)   Commissioner to assess surcharge.  

For each financial year (being a financial year that ends before 1 July 2005) in which termination payments are made to or for a taxpayer, the Commissioner must make an assessment that:

(a) calculates the taxpayer's adjusted taxable income; and

(b) if the adjusted taxable income is greater than the surcharge threshold:

(i) calculates the termination payments; and

(ii) calculates the rate of surcharge that applies to the taxpayer; and

(iii) specifies the amount of the surcharge payable or, if no surcharge is payable, states that a nil amount of surcharge is payable; and

(c) if the adjusted taxable income is equal to or less than the surcharge threshold - states that a nil amount of surcharge is payable.

11(2)   When surcharge is payable.  

Surcharge assessed under subsection (1) is payable within one month after the day on which the assessment is made.

Note:

For provisions about collection and recovery of termination payments surcharge and other related amounts, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953.

11(3)   Notice of assessment.  

When an assessment (including an amended assessment) is made, the Commissioner must, subject to subsection (4), give notice of the assessment to the taxpayer.

11(4)   No notice if nil amount assessed.  

The Commissioner is not required under subsection (3) to give a notice of an assessment if the assessment states that a nil amount of surcharge is payable.

11(5)   Particulars in notice of assessment.  

A notice of assessment must include particulars of the matters contained in the assessment under subsection (1).

11(6)   How a notice is to be given.  

A notice of assessment may be given in any manner prescribed by the regulations.

11(7)   Non-compliance not to affect validity of assessment.  

The validity of any assessment is not affected by any non-compliance with a provision of this Act.

SECTION 11A   PERIODS WITHIN WHICH ASSESSMENTS MAY BE AMENDED  

11A(1)   General provision.  

The Commissioner may, subject to this section, at any time amend an assessment of surcharge on a termination payment or termination payments made to or for a taxpayer by making such alterations or additions as the Commissioner thinks necessary, even though surcharge has been paid in respect of the assessment. Such an amendment may be made on the Commissioner's own initiative or at the request of the member.

11A(2)   Period for making further amendment.  

If:

(a) an assessment has been amended in any particular in a way that effected a reduction in the amount of surcharge payable; and

(b) for the purposes of making the amendment, the Commissioner accepted a statement made by or on behalf of a taxpayer;

the Commissioner may, within 4 years from the date of service of the notice of the amended assessment, further amend the assessment in, or in respect of, that particular in a way that increases the amount of the surcharge payable to the extent that the Commissioner considers necessary.

11A(3)   Period where avoidance of surcharge.  

Subject to this section, if there has been an avoidance of surcharge, the Commissioner may:

(a) if the Commissioner is of the opinion that the avoidance of surcharge is due to fraud or evasion - at any time; or

(b) in any other case - within 4 years from the date upon which the surcharge became due and payable under the assessment;

amend the assessment by making such alterations or additions as the Commissioner thinks necessary to correct the assessment.

11A(4)   Period where amendment reduces surcharge.  

An amendment effecting a reduction in the amount of surcharge payable under an assessment is not to be made after the end of 4 years from the date upon which the surcharge became due and payable under the assessment.

11A(5)   Application or request for extension of period.  

If:

(a) the Commissioner has begun an examination of the affairs of a taxpayer; and

(b) the examination was not completed within the period within which the Commissioner may amend an assessment to which the examination relates under subsection (3) or, if that period has been extended by any previous order or orders of the Federal Court of Australia made under subsection (6), or by any previous consent or consents of the taxpayer given under subsection (7), within that period as so extended;

the Commissioner may, before the end of the period referred to in paragraph (b) of this subsection, apply to the Federal Court for an order extending, or request the taxpayer to consent to the extension of, the period within which the Commissioner may amend the assessment under paragraph (3)(b).

11A(6)   Court may extend period.  

If, on application made to the Federal Court of Australia in accordance with subsection (5), the Court is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the period referred to in paragraph (5)(b) because of any action taken by the taxpayer or any failure of the taxpayer to take action that it would have been reasonable for the taxpayer to take, the Court may make an order extending the period within which the Commissioner may amend the assessment under paragraph (3)(b) for such period as the Court considers appropriate.

11A(7)   Taxpayer may extend period.  

If a request is made to the taxpayer in accordance with subsection (5), the taxpayer may, by writing, consent to the extension of the period within which the Commissioner may amend the assessment under paragraph (3)(b) for such period as is specified in the instrument of consent.

11A(8)   Meaning of take action.  

In subsection (6), a reference to action taken by a taxpayer includes a reference to the institution by the taxpayer of a proceeding before a court or tribunal.

11A(9)   Period for further amendment reducing surcharge.  

If an assessment has, under this section, been amended in any particular, the Commissioner may, within 4 years from the date upon which surcharge became due under the amended assessment, make, in or in respect of that particular, such further amendment of the assessment as, in the Commissioner's opinion, is necessary to effect such reduction in the amount of surcharge payable under the assessment as is just.

11A(10)   Case when subsection (9) does not apply.  

Subsection (9) does not authorise the further amendment of an earlier further amendment of an assessment made under subsection (2).

11A(11)   Assessment following application by taxpayer.  

If:

(a) an application for an amendment of an assessment is made by a taxpayer within 4 years from the date upon which surcharge became due and payable under the assessment; and

(b) the taxpayer has given to the Commissioner within that period all information needed by the Commissioner for the purpose of deciding the application;

the Commissioner may amend the assessment when he or she decides the application even though that period has elapsed.

11A(12)   How application for amendment is to be made.  

An application for amendment must be made in writing, on a data processing device or by way of electronic transmission and must be signed in accordance with the regulations.

11A(13)   Information to be contained in application.  

An application for amendment must be given in the prescribed manner and contain the prescribed information.

11A(14)   Certain other powers of amendment not affected.  

Nothing in this section prevents:

(a) the amendment of an assessment in order to give effect to the decision upon any appeal or review; or

(b) the amendment of an assessment by way of reduction in the amount of surcharge payable pursuant to an objection made against the assessment or pending any appeal or review.

SECTION 12   AMENDMENT OF ASSESSMENTS  

12(1)   Application.  

This section applies if, after the making of an assessment of surcharge on a termination payment or termination payments made to or for a taxpayer in a financial year:

(a) the taxpayer's adjusted taxable income for the financial year is increased or reduced and the increase or reduction affects the taxpayer's liability to pay the surcharge; or

(b) the amount of the payment or the sum of the amounts of the payments is greater or less than the amount that was taken to be the amount of the payment or the sum for the purposes of the assessment.

12(2)   Commissioner may amend assessment.  

The Commissioner may amend the assessment to take account of any matter referred to in paragraph (1)(a) or (b).

12(3)   Amendment increasing surcharge.  

If, as a result of the amendment of the assessment, the amount of surcharge is increased, the amount of the increase is payable within one month after the day on which the assessment is amended.

12(4)   Amendment reducing surcharge.  

If, as a result of the amendment of the assessment, the amount of surcharge is reduced:

(a) the amount by which the surcharge is reduced is taken never to have been payable; and

(b) the Commissioner must:

(i) refund the amount of any surcharge overpaid; or

(ii) apply that amount against any liability of the taxpayer to the Commonwealth under this Act, and refund to the taxpayer any part of that amount not so applied.

12(5)   This section subject to section 11A.  

This section is subject to section 11A.

SECTION 13   PAYMENT OF GENERAL INTEREST CHARGE IF LIABILITY INCREASED BY AMENDED ASSESSMENT  

13(1)   Liability to pay general interest charge.  

If an amendment of an assessment increasing a taxpayer's liability to pay surcharge for a financial year is made, the taxpayer is liable to pay the general interest charge on the amount of the increase for each day in the period that:

(a) started at the beginning of 15 June in the financial year; and

(b) finishes at the end of the day before the amended assessment is made.

Note:

The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.

13(2)   Amendment of nil assessment.  

If:

(a) the Commissioner has calculated that no surcharge is payable by a taxpayer for a financial year; and

(b) the Commissioner afterwards makes an assessment of surcharge payable by the taxpayer for the financial year;

that assessment is taken to be an amended assessment.

SECTION 14   14   COMMISSIONER MAY USE TAX FILE NUMBERS FOR THE PURPOSES OF THIS ACT  
The Commissioner may use for the purposes of this Act a tax file number that has been provided for any other purpose.

SECTION 15   15   OBJECTIONS AGAINST ASSESSMENTS  
If:

(a) an assessment of surcharge payable by a taxpayer is made; and

(b) the taxpayer is dissatisfied with the assessment;

the taxpayer may object against it in the way set out in Part IVC of the Taxation Administration Act 1953.

PART 4 - RECOVERY OF UNPAID SURCHARGE, GENERAL INTEREST CHARGE OR LATE PAYMENT PENALTY  

SECTION 16   PENALTY FOR NON-PAYMENT OF SURCHARGE  

16(1)   Liability to pay general interest charge.  

If an amount of surcharge payable by a taxpayer remains unpaid after the time by which it is due to be paid, the taxpayer is liable to pay the general interest charge on the unpaid amount.

Note:

The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.

16(2)   General interest charge period.  

The taxpayer is liable to pay the general interest charge for each day in the period that:

(a) started at the beginning of the day by which the surcharge was due to be paid; and

(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

(i) the surcharge;

(ii) general interest charge on any of the surcharge.

16(3)  

16(3A)  

16(3B)   Commissioner's right to sue not affected.  

This section does not prevent the Commissioner from suing for the recovery of any unpaid surcharge, general interest charge or late payment penalty at any time after it becomes due and payable.

16(4)  

SECTION 16A   ADDITIONAL LIABILITY TO PAY GENERAL INTEREST CHARGE  

16A(1)   Commissioner may give notice.  

If general interest charge (the primary general interest charge ) is payable by a person under section 13, the Commissioner may give a notice to the person specifying a date after which general interest charge will apply under this section. The specified date must be at least 30 days after the notice is given.

16A(2)   Liability to general interest charge.  

If any of the primary general interest charge remains unpaid after the day specified in the notice, the person is liable to pay general interest charge on the unpaid amount.

Note:

The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.

16A(3)   General interest charge period.  

The person is liable to pay the general interest charge for each day in the period that:

(a) started at the beginning of the day specified in the notice; and

(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

(i) primary general interest charge;

(ii) general interest charge on primary general interest charge.

SECTION 17   17   RECOVERY OF UNPAID AMOUNTS  

SECTION 18   18   PAYMENT OF SURCHARGE, GENERAL INTEREST CHARGE OR LATE PAYMENT PENALTY  

SECTION 19   19   APPLICATION OF PAYMENTS  

SECTION 20   20   REVIEW OF DECISION NOT TO REMIT INTEREST OR LATE PAYMENT PENALTY  

PART 5 - ADMINISTRATION  

SECTION 21   21   GENERAL ADMINISTRATION OF ACT  
The Commissioner has the general administration of this Act.

Note:

An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.

SECTION 22   22   ANNUAL REPORT  
After the end of each financial year, the Commissioner must give the Treasurer a report on the working of this Act during the year for presentation to the Parliament.

SECTION 23   23   SECRECY  
(Repealed by No 145 of 2010)

PART 6 - MISCELLANEOUS  

SECTION 24   24   AUTHORISED OFFICERS  
The Commissioner may, by writing, authorise a person who is engaged under the Public Service Act 1999 to be an authorised officer for the purposes of a provision or provisions of this Part.

SECTION 25   EVIDENCE  

25(1)   Assessment to be evidence of correctness of calculations.  

The mere production of:

(a) an assessment; or

(b) a document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of an assessment;

is conclusive evidence of the due making of the assessment and, except in proceedings under Part IVC of the Taxation Administration Act 1953 on a review or appeal relating to the assessment, that the amounts and all of the particulars of the assessment are correct.

25(2)   Copies of documents.  

A document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of a document issued or given by the Commissioner, a Second Commissioner or a Deputy Commissioner is prima facie evidence that the second-mentioned document was so issued or given.

25(3)   Copy of, or extract from, assessment.  

A document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of, or an extract from, an assessment is evidence of the matter set out in the document to the same extent as the original assessment would be if it were produced.

25(4)   Certificates.  

A certificate signed by the Commissioner, a Second Commissioner or a Deputy Commissioner certifying that an amount stated in the certificate was, on the day of the certificate, payable by a person as an amount of surcharge, general interest charge under section 13 or late payment penalty, is prima facie evidence of the matters stated in the certificate.

SECTION 26   ACCESS TO PREMISES ETC.  

26(1)   Powers of authorised officer.  

For the purposes of this Act, an authorised officer:

(a) may, at any reasonable time, enter and remain on any land or premises; and

(b) is entitled to full and free access at any reasonable time to all documents; and

(c) may inspect, examine, make copies of, or take extracts from, any documents.

26(2)   Proof of authority to be produced.  

An authorised officer is not entitled to enter or remain on any land or premises if, on being requested by the occupier of the land or premises for proof of authority, the officer does not produce a written authority signed by the Commissioner stating that the officer is authorised to exercise powers under this section.

26(3)   Occupier to help authorised officer.  

The occupier of land or premises entered or proposed to be entered by an authorised officer under subsection (1) must, for the purpose of enabling the effective exercise of the officer's powers under this section, provide the officer with all reasonable facilities and assistance that the occupier is reasonably capable of providing.

Penalty: 30 penalty units.

Note:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

SECTION 27   OBTAINING INFORMATION AND EVIDENCE  

27(1)   Power of Commissioner to obtain information or documents.  

The Commissioner may, for the purposes of this Act, by written notice, require a person:

(a) to give to the Commissioner, within a reasonable period, and in a reasonable manner, stated in the notice, any information that the Commissioner requires; and

(b) to attend before the Commissioner, or an authorised officer, at a reasonable time and place stated in the notice, and answer questions; and

(c) to produce to the Commissioner, at a reasonable time and place stated in the notice, any documents in the custody or under the control of the person.

27(2)   Power to require information on oath or affirmation.  

The Commissioner may require the information or answers to be verified or given on oath or affirmation, and either orally or in writing, and for that purpose the Commissioner or an authorised officer may administer an oath or affirmation.

27(3)   Nature of oath or affirmation.  

The oath to be taken or affirmation to be made by a person is an oath or affirmation that the information or answers the person will give will be true.

27(4)   Expenses of attendance.  

The regulations are to prescribe scales of expenses to be allowed to persons required to attend under this section.

SECTION 28   RECORDS TO BE KEPT AND RETAINED BY EMPLOYER  

28(1)   Employer to keep records.  

An employer must keep records that record and explain all termination payments made by the employer.

28(2)   How records to be kept.  

The records must be kept in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language.

28(3)   Period for retention of records.  

An employer who has possession of any records kept or obtained under or for the purposes of this Act must retain them until the end of 5 years after they were prepared or obtained, or the making of the payments to which those records relate, whichever is the later.

28(4)   When records need not be kept.  

This section does not require an employer to retain records if:

(a) the Commissioner has notified the employer that the retention of the records is not required; or

(b) the employer is a company that has gone into liquidation and been finally dissolved.

28(5)   Offences.  

An employer who contravenes this section is guilty of an offence punishable on conviction by a fine of not more than 60 penalty units.

Note 1:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:

The amount of a penalty unit is stated in section 4AA of the Crimes Act 1914. If a body corporate is convicted of an offence, subsection 4B(3) of that Act allows a court to impose a fine that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.

Note 3:

In a prosecution for an offence against subsection (5), the defendant bears an evidential burden in relation to the matter in subsection (4) (see subsection 13.3(3) of the Criminal Code).

SECTION 28A   28A   COMMISSIONER MAY COLLECT MONEY FROM PERSON WHO OWES MONEY TO A SURCHARGE PAYER  

SECTION 29   29   APPLICATION OF THE CRIMINAL CODE  
Chapter 2 of the Criminal Code applies to all offences against this Act.

SECTION 30   30   REGULATIONS  
The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

PART 7 - INTERPRETATION  

SECTION 31   31   DEFINITIONS  
In this Act, unless the contrary intention applies:

adjusted taxable income
of a taxpayer has the same meaning as adjusted taxable income of a member has in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

assessment
means an assessment made under subsection 11(1).

authorised officer
means a person engaged under the Public Service Act 1999 who has been authorised in writing by the Commissioner for the purposes of the provision in which the expression occurs.

Commissioner
means the Commissioner of Taxation.

Deputy Commissioner
means a Deputy Commissioner of Taxation.

general interest charge
means the charge worked out under Part IIA of the Taxation Administration Act 1953.

Income Tax Assessment Act
means the Income Tax Assessment Act 1936.

"interest"

late payment penalty
means general interest charge payable under section 16 or 16A.

post-June 1994 invalidity component
of an eligible termination payment has the meaning given by subsection 27A(1) of the Income Tax Assessment Act.

retained amount
has the meaning given by section 27AC of the Income Tax Assessment Act.

Second Commissioner
means a Second Commissioner of Taxation.

surcharge threshold
has the meaning given by section 10.

taxpayer
means an individual who is a taxpayer for the purposes of the Income Tax Assessment Act but does not include an individual acting as a trustee.

termination payment
has the meaning given by subsection 7(2).

termination payments surcharge
or surcharge means the tax imposed by the Termination Payments Tax Imposition Act 1997.

the 1996-97 financial year
means the financial year that started on 1 July 1996.