Income Tax Assessment Act 1936
View history note
Hide history noteSubdiv 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.
(Repealed by No 15 of 2007)
S 27A repealed by No 15 of 2007, s 3 and Sch 1 item 3, applicable to the 2007-2008 income year and later years. S 27A formerly read:
actual net benefit
Definition of
"
actual net benefit
"
inserted by No 105 of 1989.
SECTION 27A INTERPRETATION
27A(1)
In this Subdivision, unless the contrary intention appears:
in relation to an amount that is an ETP in relation to a taxpayer, means the amount of the ETP reduced by any tax payable by the taxpayer that is attributable to the ETP.
agreement
means any agreement, arrangement or understanding whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.
annuity
has the same meaning as in section
10
of the
Superannuation Industry (Supervision) Act 1993
.
Definition of " annuity " amended by No 82 of 1993; inserted by No 208 of 1992.
approved deposit fund
means:
(aa) a fund that, at any time after the beginning of the fund ' s 1994-95 year of income, is or was an approved deposit fund within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or
(a) a fund that was, at any time during the period:
(i) beginning immediately after the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1989 ; and
an approved deposit fund within the meaning of the Occupational Superannuation Standards Act 1987 as in force on 30 November 1993; or
(ii) ending immediately before the beginning of the fund ' s 1994-95 year of income;
(b) a fund:
(i) that was established before the commencement of section 1 of the Taxation Laws Amendment Act (No 4) 1989 ; and
(ii) that was an approved deposit fund for the purposes of this Subdivision as in force immediately before that commencement.
Definition of " approved deposit fund " amended by No 82 of 1993 and substituted by No 167 of 1989.
approved early retirement scheme payment
, in relation to a taxpayer, means an approved early retirement scheme payment in relation to the taxpayer ascertained under section
27E
.
approved project
has the same meaning as in section
23AF
.
Definition of " approved project " inserted by No 181 of 1994.
"approved purposes"
(Omitted by No 167 of 1989)
"approved rules"
(Omitted by No 167 of 1989)
Former definition of " approved rules " amended by No 129 of 1985.
"approved trustee"
(Omitted by No 82 of 1993)
Former definition of " approved trustee " substituted by No 167 of 1989.
bona fide redundancy payment
, in relation to a taxpayer, means a bona fide redundancy payment in relation to the taxpayer ascertained under section
27F
.
CGT exempt component
, in relation to an ETP, means:
(a) if the ETP was covered former by subsection 160ZZPZE(4) - the amount of the ETP; or
(b) if the whole or a part of the ETP was taken by former subsection 160ZZPZJ(4) to consist solely of a CGT exempt component - the amount of that component; or
(c) the amount that is its CGT exempt component under subsection 152-310(4) or (5) of the Income Tax Assessment Act 1997 .
Definition of " CGT exempt component " amended by No 165 of 1999 (as amended by No 173 of 2000).
Note that the 15-year exemption in Subdivision 152-B of the Income Tax Assessment Act 1997 , will effectively only apply to CGT events that happen on or after 20 September 2000, since the 15-year exemption is only relevant to CGT assets acquired on or after 20 September 1985.
Act No 165 of 1999 contained the following transitional provision:
Transitional - old CGT retirement exemption limit carries over
If an individual ' s CGT retirement exemption limit was reduced by one or more amounts under:
(a) section 118-435 of the Income Tax Assessment Act 1997 ; or
(b) section 160ZZPZN of the Income Tax Assessment Act 1936 ;or both, then the individual ' s CGT retirement exemption limit under Subdivision 152 D of that Act (as inserted by this Schedule) is taken to have been reduced by the total of all those amounts at 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.
Note: This could result in the individual ' s new limit being reduced to nil at that time, if he or she has already used it up under those old provisions.
Definition of " CGT exempt component " amended by No 94 of 1999, inserted by No 147 of 1997.
complying ADF
has the same meaning as in Part
IX
.
Definition of " complying ADF " inserted by No 105 of 1989.
complying superannuation fund
has the same meaning as in Part
IX
.
Definition of " complying superannuation fund " inserted by No 105 of 1989.
concessional component
, in relation to an ETP, means so much of the ETP as consists of, or is attributable to:
(a) a bona fide redundancy payment made before 1 July 1994; or
(b) an approved early retirement scheme payment made before 1 July 1994; or
(c) an invalidity payment made before 1 July 1994.
Definition of " concessional component " substituted by No 208 of 1992.
continuously complying ADF
has the same meaning as in Part
IX
.
Definition of " continuously complying ADF " inserted by No 105 of 1989.
continuously complying superannuation fund
has the same meaning as in Part
IX
.
Definition of " continuously complying superannuation fund " inserted by No 105 of 1989.
continuously non-complying ADF
means an approved deposit fund:
(a) in the case of a fund that came into existence before 1 July 1988:
(i) that was an ineligible approved deposit fund within the meaning of section 121B of this Act, as in force at a time before 1 July 1988, in relation to the year of income commencing on 1 July 1987 and to each preceding year of income during which the fund was in existence; and
(ii) that has been a non-complying ADF in relation to the year of income commencing on 1 July 1988 and to each succeeding year of income; or
(b) in any other case - that has been a non-complying ADF in relation to each year of income since it came into existence.
Definition of " continuously non-complying ADF " inserted by No 61 of 1990.
contributions-splitting ETP
, in relation to a taxpayer, means an amount:
(a) paid to a superannuation fund, approved deposit fund or life assurance company, or transferred within a superannuation fund, for the benefit of the taxpayer; and
(b) designated as a spouse contributions-splitting amount in regulations made for the purposes of this definition.
Definition of " contributions-splitting ETP " inserted by No 148 of 2005.
death benefit ETP
means an ETP that is a death benefit within the meaning of section
27AAA
.
Definition of " death benefit ETP " inserted by No 7 of 1993.
deferred annuity
means an annuity other than an immediate annuity.
departing Australia superannuation payment
means a payment that:
(a) would be an ETP except for the operation of paragraph (qa) of the definition of eligible termination payment ; and
(b) is paid to a person who has departed Australia; and
(c) is paid:
(i) in accordance with regulations under the Superannuation Industry (Supervision) Act 1993 or the Retirement Savings Accounts Act 1997 that are prescribed for the purposes of this definition; or
(ii) in accordance with section 67A of the Small Superannuation Accounts Act 1995 ; or
(iii) by an exempt public sector superannuation scheme (within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993 ) and is made in accordance with rules of the fund that are substantially similar to the regulations referred to in subparagraph (i).
Definition of " departing Australia superannuation payment " inserted by No 15 of 2002.
dependant
, in relation to a person (the
first person
), includes:
(a) in subparagraph (3)(a)(ii), subsections (5), (5C) and (7) and paragraph (12)(a):
(i) any spouse or former spouse of the first person; and
(ii) any child of the first person; and
(b) in any other case:
(i) any spouse or former spouse of the first person; and
(ii) any child, aged less than 18 years, of the first person; and
(iii) any person with whom the first person has an interdependency relationship.
Definition of " dependant " substituted by No 102 of 2004 and No 11 of 1988.
depositor
, in relation to a fund, means a person who has paid an amount to the fund.
eligible annuity
, in relation to a taxpayer, means:
(a) (Repealed by No 101 of 2004)
(b) an annuity in respect of which the following conditions are satisfied:
(i) the annuity:
(A) is an immediate annuity purchased on or before 9 December 1987; or
(B) is an annuity whose purchase price consists wholly of a rolled-over amount or rolled-over amounts;
(ii) if the annuity contract permits a residual capital value to become payable after the 65th anniversary of the birth of the taxpayer - the contract does not permit the residual capital value to exceed the purchase price of the annuity;
(iii) if the annuity is payable for a term of years certain and the annuity contract permits a commutation payment or payments to become payable after the 65th anniversary of the birth of the taxpayer - the contract does not permit the total of such payments to exceed the reduced purchase price of the annuity;
(iv) if the annuity is payable until:
(A) the death of a particular person or of the last to die of 2 or more persons; orwhichever last occurs, and the annuity contract permits a commutation payment or payments to become payable after the 65th anniversary of the birth of the taxpayer and before the end of that term of years certain - the contract does not permit the total of such payments to exceed the reduced purchase price of the annuity;
(B) the end of a term of years certain;
(v) if the annuity contract permits any annuity income to be derived in respect of a period commencing after the 65th anniversary of the birth of the taxpayer - the Commissioner is satisfied that there will not be any unreasonable deferral of the derivation of any of that income, having regard to the following matters:
(A) to the extent to which the amounts of that annuity income will depend on the amount of income that may be derived by the person paying the annuity - the respective times of derivation of those amounts of annuity income and of the income of the person paying the annuity;
(B) to the extent to which the amounts of that annuity income are not dependent on the amount of income that may be derived by the person paying the annuity - the relative sizes of the annual entitlements to that annuity income;
(C) such other matters as the Commissioner considers relevant;
(vi) if the annuity is a deferred annuity - the annuity contract requires the annuity to become an immediate annuity not later than the 65th anniversary of the birth of the taxpayer;
(vii) if the annuity is of a kind specified in the regulations - the annuity is taken, under the regulations, to meet the annuity standards.
Definition of " eligible annuity " amended by No 101 of 2004, No 208 of 1992 and substituted by No 11 of 1988.
"eligible bank"
(Omitted by No 167 of 1989)
Former definition of " eligible bank " amended by No 129 of 1989.
"eligible financial corporation"
(Omitted by No 167 of 1989)
eligible foreign remuneration
has the same meaning as in section
23AF
.
Definition of " eligible foreign remuneration " inserted by No 181 of 1994.
eligible non-resident non-complying superannuation fund
means a non-resident superannuation fund that:
(a) is a continuously non-complying superannuation fund (as defined in subsection 267(1)); or
(b) is a non-complying superannuation fund that ceased, or last ceased, to be a complying superannuation fund on or after 1 July 1995.
Definition of " eligible non-resident non-complying superannuation fund " inserted by No 181 of 1994.
eligible resident non-complying superannuation fund
, at a particular time (the
"
relevant time
"
), means a fund:
(a) that:
(i) is a continuously non-complying superannuation fund (as defined by subsection 267(1)) at the relevant time; or
(ii) is a non-complying superannuation fund at the relevant time and ceased, or last ceased, to be a complying superannuation fund on or after 1 July 1995; and
(b) that:
(i) is a resident superannuation fund at the relevant time, or was a resident superannuation fund at any previous time in the year of income in which the relevant time occurred, and has always been a resident superannuation fund in relation to the years of income preceding that year of income; or
(ii) is a resident superannuation fund at the relevant time, or was a resident superannuation fund at any previous time in the year of income in which the relevant time occurred, and ceased, or last ceased, to be a non-resident superannuation fund in relation to a previous year of income on or after 1 July 1995.
Definition of " eligible resident non-complying superannuation fund " inserted by No 181 of 1994.
eligible service period
, in relation to an eligible termination payment (in this definition referred to as the
relevant eligible termination payment
), means:
(a) where the relevant eligible termination payment is an eligible termination payment by virtue of paragraph (a) or (aa) of the definition of eligible termination payment - the period, or the aggregate of the periods, of the employment to which the relevant eligible termination payment relates; or
(b) where the relevant eligible termination payment is an eligible termination payment by virtue of paragraph (b), (ba), (c), (ca), (da), (db), (ga) or (gb) of the definition of eligible termination payment - the period that is the relevant service period, or the aggregate of the periods that are relevant service periods, in relation to the relevant eligible termination payment; or
(ba) where the relevant eligible termination payment is an eligible termination payment by virtue of paragraph (bb) of the definition of eligible termination payment - a period of zero days; or
(c) where the relevant eligible termination payment is an eligible termination payment by virtue of paragraph (d), (daa), (e), (ea) or (f) of the definition of eligible termination payment - the aggregate of:
(i) the period that, if:
(A) an eligible termination payment (in this subparagraph referred to as the notional eligible termination payment ) had been made in lieu of the superannuation pension referred to in that paragraph; andwould have been the eligible service period in relation to the notional eligible termination payment; and
(B) the notional eligible termination payment had been an eligible termination payment by virtue of paragraph (b) of the definition of eligible termination payment ,
(ii) the period commencing on the date of commencement of the period in respect of which the superannuation pension was first payable (whether or not in relation to the person in relation to whom the eligible termination payment was made) and ending on the date on which the relevant eligible termination payment was made; or
(d) where the relevant eligible termination payment is an eligible termination payment by virtue of paragraph (g), (gaa), (h), (ha) or (j) of the definition of eligible termination payment :
(i) where there is a rolled-over amount, or there are rolled-over amounts, in relation to the purchase price of the qualifying annuity referred to in that paragraph - the aggregate of:
(A) the eligible service period in relation to the eligible termination payment by reference to which the rolled-over amount was ascertained or, if there are 2 or more rolled-over amounts in relation to that qualifying annuity, the aggregate of the eligible service periods in relation to the eligible termination payments by reference to which those rolled-over amounts were ascertained; and
(B) the period commencing on the date on which the qualifying annuity was purchased and ending on the date on which the relevant eligible termination payment was made; and
(ii) in any other case - the period commencing on the date on which the qualifying annuity referred to in that paragraph was purchased and ending on the date on which the relevant eligible termination payment was made.
Definition of " eligible service period " amended by No 148 of 2005, No 66 of 2003, No 11 of 1988.
eligible superannuation fund
has the same meaning as in Part
IX
.
Definition of " eligible superannuation fund " inserted by No 105 of 1989.
eligible termination payment
, in relation to a taxpayer, means any of the following:
(a) any payment made in respect of the taxpayer in consequence of the termination of any employment of the taxpayer, other than a payment:
(i) made from a superannuation fund in respect of the taxpayer by reason that the taxpayer is or was a member of the fund;
(ii) of an annuity, or supplement, to which section 27H applies;
(iii) from a fund in relation to which section 121DA , as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989 , has applied in relation to the year of income commencing on 1 July 1984 or any subsequent year of income;
(iiia) from a fund that is or has been a non-complying superannuation fund in relation to any year of income;
(iv) of an amount to which section 26AC or 26AD applies; or
(v) of an amount that, under any provision of this Act, is deemed to be a dividend, or non-share dividend, paid to the taxpayer;
(aa) any payment made to the taxpayer in consequence of the termination of any employment of another person, where:
(i) the payment is made after the death of the other person;
(ii) (Omitted by No 7 of 1993)
(iii) the payment is made to the taxpayer otherwise than as trustee of the estate of the other person; and
(iv) the payment is not a payment:
(A) made to the taxpayer from a superannuation fund by reason that another person was a member of the fund;
(B) of an annuity, or supplement, to which section 27H applies;
(C) from a fund in relation to which section 121DA , as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989 , has applied in relation to the year of income commencing on 1 July 1984 or any subsequent year of income; or
(D) from a fund that is or has been a non-complying superannuation fund in relation to any year of income;
(b) any payment made from a superannuation fund in respect of the taxpayer by reason that the taxpayer is or was a member of the fund, not being a payment:
(i) that is income of the taxpayer; or
(ii) to which paragraph (d), (da), (e) or (ga) applies; or
(iii) that is a benefit to which subsection 26AF(1) , 26AFA(1) or 26AFB(2) or (3) applies; or
reduced by any amount that has been or will be included in the assessable income of the taxpayer under subsection 26AF(2) , 26AFA(3) or 26AFB(5) in respect of the transfer by the taxpayer of a right to receive the payment or any part of the payment;
(iv) that is a contributions-splitting ETP;
(ba) any payment made to the taxpayer from a superannuation fund by reason that another person was a member of the fund, where:
(i) the payment is made after the death of the other person;
(ii) (Omitted by No 7 of 1993)
(iii) the payment is made to the taxpayer otherwise than as trustee of the estate of the other person; and
reduced by any amount that has been or will be included in the assessable income of any person under subsection 26AF(2) , 26AFA(3) or 26AFB(5) in respect of the transfer to the taxpayer of a right to receive the payment or any part of the payment;
(iv) the payment is not:
(A) income of the taxpayer;
(B) a payment to which paragraph (d), (db), (e), (f) or (gb) applies; or
(C) a benefit to which subsection 26AF(1) , 26AFA(1) or 26AFB(2) or (3) applies;
(bb) an amount that is a contributions-splitting ETP;
(c) any payment made by the trustee of an approved deposit fund in respect of the taxpayer by reason that the taxpayer is or was a depositor with the fund, not being a payment that is income of the taxpayer;
(ca) any payment made to the taxpayer by the trustee of an approved deposit fund by reason that another person was a depositor with the fund, where:
(i) the payment is made after the death of the other person;
(ii) (Omitted by No 7 of 1993)
(iii) the payment is made to the taxpayer otherwise than as trustee of the estate of the other person; and
(iv) the payment is not income of the taxpayer;
(d) any payment made in respect of the taxpayer in relation to the commutation, in whole or in part, of a superannuation pension that was payable to the taxpayer;
(daa) an amount resulting from the commutation in whole or in part of a superannuation pension payable to the taxpayer from a superannuation fund, being an amount:
(i) that remains in the fund after the commutation, for the purpose of providing superannuation benefits to the taxpayer or to dependants of the taxpayer in the event of the death of the taxpayer; or
(ii) that is applied, immediately after the commutation, towards the provision of one or more other superannuation pensions payable to the taxpayer from that fund;
(da) a payment (in this paragraph called the " capital payment " ) made after the death of the taxpayer to the trustee of the estate of the taxpayer where:
(i) the capital payment is made by reason that the taxpayer was a member of a superannuation fund (whether or not the capital payment is made from the fund); and
(ii) at some time after the death of the taxpayer, a person had a right to elect to receive a superannuation pension (whether or not from the person making the capital payment) in lieu of the capital payment being made to the trustee;
(db) a payment (in this paragraph called the " capital payment " ) made to the taxpayer after the death of another person (in this paragraph called the " deceased person " ) where:
(i) the capital payment is made by reason that the deceased person was a member of a superannuation fund (whether or not the capital payment is made from the fund);
(ii) the capital payment is made to the taxpayer otherwise than as trustee of the estate of the deceased person; and
(iii) at some time after the death of the deceased person, the taxpayer or another person had a right to elect to receive a superannuation pension (whether or not from the person making the capital payment) in lieu of the capital payment being made to the taxpayer;
(e) any payment made in respect of the taxpayer of the residual capital value of a superannuation pension that was payable to the taxpayer;
(ea) the residual capital value of a superannuation pension payable to the taxpayer from a superannuation fund:
(i) that remains in the fund, after the residual capital value of the pension became payable, for the purpose of the provision of superannuation benefits to the taxpayer or to dependants of the taxpayer in the event of the death of the taxpayer; or
(ii) that is applied, immediately after the residual capital value of the pension became payable, towards the provision of one or more other superannuation pensions payable to the taxpayer from that fund;
(f) any payment made to the taxpayer of the residual capital value of a superannuation pension where:
(i) the residual capital value is paid to the taxpayer after the death of the person to whom the pension was payable; and
(ii) the payment is made to the taxpayer otherwise than as trustee of the estate of the person to whom the pension was payable;
(fa) a payment under section 63 , 64 , 65 , 66 or 67 of the Small Superannuation Accounts Act 1995 , where the payment is in respect of an account kept under that Act in the name of the taxpayer;
(fb) a payment under section 68 of the Small Superannuation Accounts Act 1995 made after the death of the taxpayer to the trustee of the estate of the taxpayer, where the payment is in respect of an account kept under that Act in the name of the taxpayer;
(fc) a payment made to the taxpayer under subsection 76(6) of the Small Superannuation Accounts Act 1995 ;
(fd) a payment under subsection 76(7) of the Small Superannuation Accounts Act 1995 made after the death of the taxpayer to the trustee of the estate of the taxpayer, where the payment is in respect of an account kept under that Act in the name of the taxpayer;
(fe) a payment made to the taxpayer under section 65A or 66 of the Superannuation Guarantee (Administration) Act 1992 ;
(ff) a payment under section 67 of the Superannuation Guarantee (Administration) Act 1992 made after the death of the taxpayer to the trustee of the estate of the taxpayer;
(g) any payment made in respect of the taxpayer in relation to the commutation, in whole or in part, of a qualifying annuity that was payable to the taxpayer;
(gaa) an amount resulting from the commutation in whole or in part of a qualifying annuity (the first annuity ) payable to the taxpayer, being an amount applied, immediately after the commutation, towards the provision of one or more other qualifying annuities payable to the taxpayer by the payer of the first annuity;
(ga) a payment (in this paragraph called the " capital payment " ) made after the death of the taxpayer to the trustee of the estate of the taxpayer where:
(i) the capital payment is made by reason that the taxpayer was a member of a superannuation fund (whether or not the capital payment is made from the fund); and
(ii) at some time after the death of the taxpayer a person had a right to elect to receive an annuity (whether or not from the person making the capital payment) in lieu of the capital payment being made to the trustee;
(gb) a payment (in this paragraph called the " capital payment " ) made to the taxpayer after the death of another person (in this paragraph called the " deceased person " ) where:
(i) the capital payment is made by reason that the deceased person was a member of a superannuation fund (whether or not the capital payment is made from the fund);
(ii) the capital payment is made to the taxpayer otherwise than as trustee of the estate of the deceased person; and
(iii) at some time after the death of the deceased person, the taxpayer or another person had a right to elect to receive an annuity (whether or not from the person making the capital payment) in lieu of the capital payment being made to the taxpayer;
(h) any payment made in respect of the taxpayer of the residual capital value of a qualifying annuity that was payable to the taxpayer;
(ha) the residual capital value of a qualifying annuity (the first annuity ) payable to the taxpayer, that is applied, immediately after that residual capital value became payable, towards the provision of one or more other qualifying annuities payable to the taxpayer by the payer of the first annuity;
(j) any payment made to the taxpayer of the residual capital value of a qualifying annuity where:
(i) the residual capital value is paid to the taxpayer after the death of the person to whom the annuity was payable; and
(ii) the payment is made to the taxpayer otherwise than as trustee of the estate of the person to whom the annuity was payable; or
(jaa) an amount that was taken to be an ETP by former subsection 160ZZPZE(4) of this Act or an amount referred to in subsection 152-310(2) or 152-325(7) of the Income Tax Assessment Act 1997 ;
but does not include any of the following:
(ja) the tax-free amount of a bona fide redundancy payment, or of an approved early retirement scheme payment, made on or after 1 July 1994;
(k) a payment by way of advance or loan, being an advance or loan made on terms and conditions similar to the terms and conditions that could reasonably be expected to apply in respect of an advance or loan to the payee by a person with whom the payee was dealing at arm ' s length in relation to the advance or loan;
(ka) an exempt resident foreign termination payment or an exempt non-resident foreign termination payment;
(m) consideration of a capital nature for, or in respect of, a legally enforceable contract in restraint of trade by the taxpayer, to the extent to which the amount or value of the consideration is, in the opinion of the Commissioner, reasonable having regard to the nature and extent of the restraint;
(ma) a payment from a fund that is an eligible resident non-complying superannuation fund, or an eligible non-resident non-complying superannuation fund, when the payment is made;
(n) consideration of a capital nature for, or in respect of, personal injury to the taxpayer, to the extent to which the amount or value of the consideration is, in the opinion of the Commissioner, reasonable having regard to the nature of the personal injury and its likely effect on the capacity of the taxpayer to derive income from personal exertion;
(p) a transfer of an amount from a fund that is a taxable contribution under subsection 274(10), being a transfer that:
(i) was not made at the request of a member of the fund; and
(ii) either:
(A) was made by the fund for the purpose of ensuring that the fund remain a complying superannuation fund; or
(B) as a result of which the fund became such a fund;
(q) amounts included in the assessable income of the taxpayer under Division 13A;
(qa) a payment that is a departing Australia superannuation payment;
(r) an amount:
(i) received by the taxpayer, or to which the taxpayer is entitled, as the result of the commutation of a pension payable from a constitutionally protected fund (within the meaning of Part IX ); and
(ii) wholly applied in paying any superannuation contributions surcharge (as defined in section 38 of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 );
(s) an amount:
(i) received by the taxpayer, or to which the taxpayer is entitled, as the result of the commutation of a pension payable by a superannuation provider (within the meaning of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 ; and
(ii) wholly applied in paying any superannuation contributions surcharge (as defined in section 43 of that Act).
Definition of " eligible termination payment " amended by No 55 of 2007 , s 3 and Sch 1 item 1, by inserting " or 152-325(7) " in para (jaa), applicable to CGT events happening in the 2006-07 income year and later income years.
Definition of " eligible termination payment " amended by No 148 of 2005, No 66 of 2003, No 51 of 2002, No 15 of 2002, No 163 of 2001 and No 165 of 1999 (as amended by No 173 of 2000).
Note that the 15-year exemption in Subdivision 152-B of the Income Tax Assessment Act 1997 , will effectively only apply to CGT events that happen on or after 20 September 2000, since the 15-year exemption is only relevant to CGT assets acquired on or after 20 September 1985.
For transitional provisions see note under s 27A(1), definition of " CGT exempt component " .
Definition of " eligible termination payment " amended by No 163 of 2001, No 131 of 1999, No 94 of 1999, No 191 of 1997 and No 147 of 1997, No 169 and 53 of 1995, No 181 of 1994, No 7 of 1993, No 208 of 1992, No 135 and No 61 of 1990, No 105 and No 97 of 1989, No 11 of 1988, No 138 of 1987 and No 129 of 1985.
employment
includes the holding of an office.
equivalent old system ETP
, in relation to an amount that is an ETP in relation to a taxpayer, means the amount that would have been the amount of the ETP if taxable contributions were exempt income.
Definition of " equivalent old system ETP " inserted by No 105 of 1989.
ETP
means an eligible termination payment.
Definition of " ETP " inserted by No 105 of 1989.
excessive component
, in relation to an ETP, means so much of the ETP as the Commissioner has determined under subsection 140R(1) exceeds the reasonable benefit limits.
Definition of " excessive component " substituted by No 208 of 1992; amended by No 135 of 1990; inserted by No 61 of 1990.
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.
Definition of " exempt non-resident foreign termination payment " inserted by No 181 of 1994.
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.
Definition of " exempt resident foreign termination payment " inserted by No 181 of 1994.
foreign earnings
has the same meaning as in section
23AG
.
Definition of " foreign earnings " inserted by No 181 of 1994.
immediate annuity
means an annuity that is presently payable.
Definition of " immediate annuity " amended by No 105 of 1989.
immediate annuity eligible termination payment
means a payment that is an eligible termination payment by virtue of the application of paragraph (g), (h) or (j) of the definition of
"
eligible termination payment
"
in relation to an immediate annuity other than an immediate annuity the whole of the purchase price of which consists of a rolled-over amount or rolled-over amounts.
Definition of " immediate annuity eligible termination payment " inserted by No 173 of 1985.
income component
, in relation to an eligible termination payment that is an immediate annuity eligible termination payment by virtue of the application of paragraph (g), (h) or (j) of the definition of
"
eligible termination payment
"
in relation to a payment (in this definition referred to as the
"
capital annuity payment
"
) made in respect of a taxpayer, means:
(a) in a case where any amount of the annuity to which the eligible termination payment relates has been derived by the taxpayer - the amount ascertained in accordance with the formula
| A − (B − C), |
where:
A is the amount of the capital annuity payment;
B is the purchase price of the annuity; and
C is the aggregate of all amounts that would have been deductible amounts for the purposes of subsection 27H(1) in relation to amounts of the annuity derived by the taxpayer if the component B in the formula in subsection 27H(2) were replaced by a component being the purchase price of the annuity; or
(b) in any other case - the amount of the capital annuity payment reduced by the purchase price of the annuity to which the eligible termination payment relates.
Definition of " income component " inserted by No 173 of 1985.
interdependency relationship
has the meaning given by section
27AAB
.
Definition of " interdependency relationship " inserted by No 102 of 2004.
internal roll-over amount
, in respect of a taxpayer, means an ETP covered by any of paragraphs (daa), (ea), (gaa) or (ha) of the definition of
eligible termination payment
in this subsection.
Definition of " internal roll-over amount " inserted by No 66 of 2003.
invalidity payment
, in relation to a taxpayer, means an invalidity payment in relation to the taxpayer ascertained under section
27G
.
"ISC-directed commutation payment"
(Omitted by No 208 of 1992)
Definition of " ISC-directed commutation payment " inserted by No 135 of 1990.
last retirement date
, in relation to any employment of a taxpayer, means:
(a) where there is a date on which the termination of that employment will necessarily occur by reason of the taxpayer attaining a particular age or completing a particular period of service - that date; or
(b) in any other case - the sixty-fifth anniversary of the birth of the taxpayer.
legal personal representative
means an executor or administrator of the estate of a deceased depositor, the trustee of the estate of a depositor under a legal disability or a person who holds a general power of attorney granted by a depositor.
"life assurance company"
(Repealed by No 101 of 2004)
Definition of " life assurance company " amended by No 44 of 1999 and No 105 of 1989.
member spouse
has the same meaning as in Part VIIIB of the
Family Law Act 1975
.
Definition of " member spouse " inserted by No 78 of 2005.
non-complying ADF
has the same meaning as in Part
IX
.
Definition of " non-complying ADF " inserted by No 61 of 1990.
non-complying superannuation fund
has the same meaning as in Part
IX
.
Definition of " non-complying superannuation fund " inserted by No 105 of 1989.
non-member spouse
has the same meaning as in Part VIIIB of the
Family Law Act 1975
.
Definition of " non-member spouse " inserted by No 78 of 2005.
non-qualifying component
, in relation to an immediate annuity eligible termination payment, means:
(a) in a case where the purchase price of the annuity to which the eligible termination payment relates consists partly of a rolled-over amount or rolled-over amounts - the amount ascertained in accordance with the formula
|
AB
C |
, |
where:
A is the income component in relation to the eligible termination payment;
B is so much of the purchase price of the annuity as does not consist of a rolled-over amount or rolled-over amounts; and
C is the purchase price of the annuity; or
(b) in any other case - the income component in relation to the eligible termination payment.
Definition of " non-qualifying component " inserted by No 173 of 1985.
non roll-over deductible amount
, in relation to an annuity or superannuation pension, means so much of an amount that, in relation to any taxpayer in relation to any year of income in relation to the annuity or superannuation pension, is a deductible amount under section
27H
as consists of an amount other than a rolled-over amount.
Definition of " non roll-over deductible amount " inserted by No 129 of 1985.
old system net benefit
, in relation to an equivalent old system ETP in relation to a taxpayer, means the amount of that ETP reduced by any tax that would have been payable by the taxpayer and attributable to that ETP if:
(a) the whole of any amount that would have been included in the assessable income of the taxpayer under subsection 27B(1) in respect of the ETP were treated as having been included under paragraph 27B(1)(b); and
(b) the rebate under Subdivision AAA of Division 17 , insofar as the rebate would be attributable to the ETP, were calculated by reference to an upper limit (within the meaning of that Subdivision) of $55,000.
Definition of " old system net benefit " inserted by No 105 of 1989.
payment split
means a payment split under Part VIIIB of the
Family Law Act 1975
.
Definition of " payment split " inserted by No 78 of 2005.
pension
means:
(a) a pension, within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or
(b) a pension, within the meaning of the Retirement Savings Accounts Act 1997 .
Definition of " pension " substituted by No 62 of 1997, amended by No 82 of 1993 and inserted by No 208 of 1992.
post-June 83 component
, in relation to an ETP, has the meaning given by section
27AA
.
Definition of " post-June 83 component " inserted by No 105 of 1989.
post-June 1994 invalidity component
, in relation to an ETP, means so much of the ETP as consists of, or is attributable to, an invalidity payment made on or after 1 July 1994.
Definition of " post-June 1994 invalidity component " inserted by No 208 of 1992.
pre-July 83 component
, in relation to an ETP, has the meaning given by section
27AA
.
Definition of " pre-July 83 component " inserted by No 105 of 1989.
property
includes:
(a) a chose in action; and
(b) any estate, interest, right or power, whether at law or in equity, in or over property.
purchase price
means:
(a) in relation to a superannuation pension - the sum of -
(i) contributions made by any person to a superannuation fund to obtain superannuation benefits consisting only of the superannuation pension; and
(ii) so much as the Commissioner considers reasonable of contributions made by any person to a superannuation fund to obtain superannuation benefits including the superannuation pension; and
(b) in relation to an annuity - the sum of:
(i) payments made solely to purchase the annuity; and
(ii) so much as the Commissioner considers reasonable of payments made to purchase the annuity and to obtain other benefits.
Definition of " purchase price " amended by No 129 of 1985.
qualifying annuity
means:
(a) an annuity purchased after 12 January 1987, wholly with rolled-over amounts, that has at any time been an eligible annuity in relation to any taxpayer; or
(b) an annuity that:
(i) was purchased on or before 12 January 1987, wholly or partly with rolled-over amounts; and
(ii) is an eligible annuity within the meaning of this section as in force immediately before the commencement of section 11 of the Taxation Laws Amendment Act 1988 ; or
(c) an immediate annuity purchased on or before 9 December 1987 wholly or partly with rolled-over amounts.
Definition of " qualifying annuity " amended by No 101 of 2004, No 78 of 1996 and inserted by No 11 of 1988.
qualifying service
has the same meaning as in section
23AF
.
Definition of " qualifying service " inserted by No 181 of 1994.
reduced purchase price
, in relation to an annuity, means the purchase price of the annuity, reduced by the total of the amounts excluded from assessable income under paragraph
27H(1)(a)
as deductible amounts in relation to the annuity.
Definition of " reduced purchase price " inserted by No 11 of 1988.
"registered auditor"
(Omitted by No 167 of 1989)
"registered organization"
(Repealed by No 101 of 2004)
Definition of " registered organization " amended by No 105 of 2002, No 44 of 1999, No 60 of 1996 and No 87 of 1988.
"related entity"
(Omitted by No 167 of 1989)
relevant service period
, in relation to an eligible termination payment in relation to a taxpayer, means:
(a) where:
(i) the eligible termination payment accrued in whole or in part during a period or periods during which the taxpayer or, as the case requires, the fund member referred to in the applicable paragraph of the definition of eligible termination payment was in employment; and
the period, or the aggregate of the periods, of the employment to which the eligible termination payment relates;
(ii) during the whole or a part of the period, or of any of the periods, referred to in subparagraph (i), the taxpayer or the fund member, as the case may be, was a member of a superannuation fund in relation to that employment,
(b) where the eligible termination payment accrued in whole or in part during a period during which the taxpayer or, as the case requires, the fund member referred to in the applicable paragraph of the definition of eligible termination payment was a member of a superannuation fund:
(i) in a case to which subparagraph (ii) does not apply - the period during which the taxpayer or the fund member, as the case may be, was a member of the fund; or
(ii) in a case where paragraph (a) applies in relation to the eligible termination payment - any period, not being a period referred to in that paragraph, during which the taxpayer or the fund member, as the case may be, was a member of the fund;
(c) where the eligible termination payment accrued in whole or in part during a period during which the taxpayer or, as the case requires, the depositor referred to in the applicable paragraph of the definition of eligible termination payment was a depositor with an approved deposit fund - the period during which the taxpayer or the depositor, as the case may be, was a depositor with that fund; and
(d) where the eligible termination payment is attributable in whole or in part to an earlier eligible termination payment or earlier eligible termination payments - the period that is the eligible service period in relation to that earlier eligible termination payment, or the aggregate of the periods that are the eligible service periods in relation to the earlier eligible termination payments, as the case may be.
Definition of " relevant service period " amended by No 11 of 1988.
residual capital value
, in relation to an annuity or superannuation pension, means the capital amount payable on the termination of the annuity or superannuation pension, as the case may be.
rolled-over
has the meaning given by paragraph (13)(a).
Definition of " rolled-over " inserted by No 105 of 1989.
rolled-over amount
, in relation to the purchase price of an annuity or superannuation pension, means so much of an eligible termination payment as is deemed by the application of section
27D
to have been applied in payment of any part of the purchase price.
roll-over
means an application of section
27D
in relation to an ETP.
Definition of " roll-over " inserted by No 105 of 1989.
roll-over annuity
means a deferred annuity the purchase price of which consists wholly of a rolled-over amount or rolled-over amounts.
"roll-over period"
(Omitted by No 208 of 1992)
Definition of " roll-over period " omitted by No 208 of 1992; amended by No 169 of 1995.
scheme
includes arrangement.
splittable payment
has the same meaning as in Part VIIIB of the
Family Law Act 1975
.
Definition of " splittable payment " inserted by No 78 of 2005.
"spouse"
(Omitted by No 135 of 1990)
Former definition of " spouse " inserted by No 11 of 1988.
superannuation fund
means:
(a) a provident, benefit, superannuation or retirement fund, being:
(ia) a fund that is or has been a non-resident superannuation fund in relation to any year of income;
(iaa) a fund that is or has been a complying superannuation fund in relation to any year of income;
(i) a fund to which paragraph 23(jaa) or section 23FC, 121CC or 121DAB, as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989 , has applied in relation to any year of income;
(ii) a fund to which paragraph 23(ja) or section 23F or 23FB, as in force at any time before the commencement of this paragraph, has applied in relation to the year of income that commenced on 1 July 1985 or a preceding year of income; or
(iii) a fund to which section 79, as in force at any time before 25 June 1984, has applied in relation to the year of income that commenced on 1 July 1983 or a preceding year of income; and
(b) a scheme for the payment of benefits upon retirement or death, being a scheme constituted by or under a law of the Commonwealth or of a State or Territory; and
(c) an RSA;
Note:
An RSA is a retirement savings account. It is regulated by the Retirement Savings Accounts Act 1997 .
but does not include an eligible resident non-complying superannuation fund or an eligible non-resident non-complying superannuation fund.
Definition of " superannuation fund " amended by No 62 of 1997, No 181 of 1994, No 105 and No 97 of 1989, and No 138 of 1987.
superannuation pension
means a pension payable from a superannuation fund.
taxable contribution
has the same meaning as in Part
IX
.
Definition of " taxable contribution " inserted by No 105 of 1989.
taxed element
, in relation to the post-June 83 component of an ETP, has the meaning given by section
27AB
.
Definition of " taxed element " inserted by No 105 of 1989.
taxed superannuation fund
, in relation to an ETP, means a superannuation fund that:
(a) is, or has been:
(i) an eligible superannuation fund in relation to any year of income; or
(ii) an RSA; and
(b) is not a constitutionally protected fund, within the meaning of Part IX , in relation to the year of income in which the ETP was made; and
(c) in the case of an eligible superannuation fund - is a resident superannuation fund in relation to the year of income in which the ETP was made.
Definition of " taxed superannuation fund " amended by No 62 of 1997, No 181 of 1994 and inserted by No 105 of 1989.
tax-free amount
, in relation to a bona fide redundancy payment or an approved early retirement scheme payment, has the meaning given by subsection (19).
Definition of " tax-free amount " inserted by No 208 of 1992.
undeducted contributions
, in relation to an ETP made in relation to a taxpayer, means:
(a) if the ETP is covered by paragraph (d), (daa), (e), (ea) or (f) of the definition of eligible termination payment - the unused undeducted purchase price in relation to the superannuation pension concerned; or
(b) if the ETP is covered by paragraph (da) or (db) of the definition of eligible termination payment - the amount that would have been the unused undeducted purchase price in relation to the superannuation pension concerned; or
(c) if the ETP is covered by paragraph (g), (gaa), (h), (ha) or (j) of the definition of eligible termination payment - the unused undeducted purchase price in relation to the annuity concerned; or
(d) if the ETP is covered by paragraph (ga) or (gb) of the definition of eligible termination payment - the amount that would have been the unused undeducted purchase price in relation to the annuity concerned (having regard only to contributions made to the fund concerned); or
(e) if:
(i) the ETP is covered by any other paragraph of the definition of eligible termination payment ; or
so much of the ETP as is attributable to contributions made by the taxpayer, or by another person, after 30 June 1983 to a superannuation fund, where:
(ii) paragraph (a), (b), (c) or (d) of this definition applies, but the amount worked out under that paragraph is nil;
(iii) the contributions were made in order to obtain superannuation benefits; and
(iv) no deductions are allowable or have been allowed to the taxpayer or to the other person in respect of the contributions;
but does not include so much of the ETP as is attributable to an amount paid from an eligible non-resident non-complying superannuation fund to a complying superannuation fund, to the extent that the amount has been treated as a taxable contribution under paragraph 274(10)(c) or (d).
Definition of " undeducted contributions " amended by No 83 of 2004, No 66 of 2003 and substituted by No 208 of 1992.
undeducted purchase price
, in relation to an annuity or superannuation pension, means:
(a) if:
(i) the first day of the period to which the first payment of the annuity or pension relates is before 1 July 1994; or
the sum of:
(ii) the first day of the period to which the first payment of the annuity or pension relates is on or after 1 July 1994 and:
(A) the annuity or pension is not a rebatable ETP annuity, or a rebatable superannuation pension, within the meaning of section 159SJ ; or
(B) in the case of a pension - a notice under section 159SS was given in relation to any payment of the pension during any year of income; or
(C) section 27AAAA applies to the annuity or superannuation pension;
(iii) so much of the purchase price of the annuity or pension as was paid before 1 July 1983 and:
(A) has not been, and will not be, an allowable deduction; and
(B) has not been, and is not to be, treated as a rebatable amount for the purposes of section 159N as in force at any time before the commencement of the Taxation Laws Amendment Act (No. 2) 1985 ; and
(C) is not an amount in respect of which a rebate of income tax has been allowed, or is allowable, in assessments for income tax under this Act or any previous law of the Commonwealth; and
(iv) so much of the purchase price of the annuity or pension as was paid on or after 1 July 1983 and has not been, and will not be, an allowable deduction, reduced by so much of the purchase price of the annuity or pension as is taken, because of section 27D , to consist of an amount to which sub-subparagraph 27D(1)(b)(iii)(A) or (B) applies; or
(b) in any other case - so much of the purchase price of the annuity or pension as was paid on or after 1 July 1983 and has not been, and will not be, an allowable deduction, reduced by so much of the purchase price of the annuity or pension as is taken, because of section 27D , to consist of an amount to which sub-subparagraph 27D(1)(b)(iii)(A) , (B), (BA) or (D) applies.
Definition of " undeducted purchase price " amended by No 41 of 1998, No 169 of 1995, No 208 of 1992, No 105 of 1989 and No 123 of 1985.
untaxed element
, in relation to the post-June 83 component of an ETP, has the meaning given by section
27AB
.
Definition of " untaxed element " inserted by No 105 of 1989.
unused undeducted purchase price
means:
(a) in relation to an annuity or superannuation pension, other than an annuity or superannuation pension to which paragraph (b) or (c) applies - so much of the undeducted purchase price of the annuity or superannuation pension as has not been excluded from the assessable income of any taxpayer of any year of income:
(i) under section 26AA of this Act as in force before the commencement of the Income Tax Assessment Amendment Act (No. 3) 1984 (including that section as continued in force by that last-mentioned Act); or
(ii) under section 27H ;
(b) in relation to an annuity or superannuation pension the purchase price of which consists wholly of a rolled-over amount or rolled-over amounts - nil; and
(c) in relation to an annuity or superannuation pension the purchase price of which consists only partly of a rolled-over amount or rolled-over amounts - an amount ascertained in accordance with the formula
| A − B, |
where:
A is so much of the undeducted purchase price in relation to the annuity or superannuation pension as does not consist of a rolled-over amount or rolled-over amounts; and
B is the aggregate of the non roll-over deductible amounts in relation to the annuity or superannuation pension.
Definition of " unused undeducted purchase price " substituted by No 129 of 1985.
S 27A(1) amended by No 101 of 2006 , s 3 and Sch 2 items 192 to 194, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
27A(2)
(Omitted by No 167 of 1989)
27A(2A)
For the purposes of the definition of concessional component in subsection (1), an eligible termination payment shall be deemed not to be attributable to so much of the purchase price of an annuity or superannuation pension as:
(a) is taken, by virtue of section 27D , to consist of an amount to which sub-subparagraph 27D(1)(b)(iii)(D) applies; and
(b) is taken, by virtue of subsection (16) of this section, to form part of a deductible amount in relation to the annuity or superannuation pension.
S 27A(2A) inserted by No 129 of 1985.
27A(3)
A reference in the definitions of eligible termination payment , exempt resident foreign termination payment and exempt non-resident foreign termination payment in subsection (1) to a payment made in respect of a taxpayer is a reference to a payment made (whether voluntarily, by agreement or by compulsion of law):
(a) during the life of the taxpayer:
(i) to or for the benefit of the taxpayer;
(ii) to or for the benefit of a dependant of the taxpayer; or
(iii) to another person at the direction or request of the taxpayer; or
(b) after the death of the taxpayer - to the trustee of the estate of the taxpayer.
S 27A(3) amended by No 181 of 1994.
27A(3A)
A reference in the definition of eligible termination payment in subsection (1) to an approved deposit fund does not include a reference to a continuously non-complying ADF.
S 27A(3A) inserted by No 61 of 1990.
27A(3B)
A reference in the definition of eligible termination payment in subsection (1) to a payment made by the trustee of an approved deposit fund in respect of a taxpayer by reason that the taxpayer was a depositor with the fund includes a reference to an amount paid to a taxpayer in accordance with section 17 or 18 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 , if the payment relates to an amount of unclaimed money that was payable to the taxpayer by the trustee of an approved deposit fund.
S 27A(3B) amended by No 128 of 1999 and inserted by No 82 of 1993.
27A(3C)
A reference in the definition of eligible termination payment in subsection (1) to a payment made from a superannuation fund in respect of a taxpayer by reason that the taxpayer was a member of the fund includes a reference to an amount paid to a taxpayer in accordance with section 17 or 18 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 , if the payment relates to an amount of unclaimed money that was payable to the taxpayer by the trustee of a superannuation fund.
S 27A(3C) amended by No 128 of 1999 and inserted by No 82 of 1993.
27A(3D)
To avoid doubt, a reference in the definition of relevant service period in subsection (1) to a period during which a taxpayer or fund member was a member of a superannuation fund does not include a reference to a period:
(a) beginning when the trustee of the fund pays unclaimed money to the Commissioner or a State or Territory authority (within the meaning of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ) in accordance with that Act; and
(b) ending when the Commissioner or the authority pays the unclaimed money to the taxpayer or fund member in accordance with that Act.
S 27A(3D) inserted by No 128 of 1999.
27A(3E)
To avoid doubt, a reference in the definition of relevant service period in subsection (1) to a period during which a taxpayer or depositor was a depositor with an approved deposit fund does not include a reference to a period:
(a) beginning when the trustee of the fund pays unclaimed money to the Commissioner or a State or Territory authority (within the meaning of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ) in accordance with that Act; and
(b) ending when the Commissioner or the authority pays the unclaimed money to the taxpayer or depositor in accordance with that Act.
S 27A(3E) inserted by No 128 of 1999.
27A(4)
(Omitted by No 7 of 1993)
27A(4A)
(Omitted by No 7 of 1993)
S 27A(4A) inserted by No 11 of 1988.
27A(5)
For the purposes of the application of the definition of eligible termination payment in subsection (1) in relation to a payment that would, but for this subsection, be an eligible termination payment in relation to a taxpayer by virtue of having been paid to or for the benefit of a dependant of the taxpayer, the payment shall, to the extent to which it is income of the dependant or is deemed, under any provision of this Act, to be a dividend, or non-share dividend, paid to the dependant, be deemed to be income of the taxpayer or a dividend, or non-share dividend, paid to the taxpayer, as the case may be.
S 27A(5) amended by No 163 of 2001.
27A(5A)
For the purposes of paragraph (d) of the definition of eligible termination payment in subsection (1), the amount or value of any consideration received or receivable by a taxpayer in respect of the transfer by the taxpayer to another person (whether by assignment, declaration of trust or otherwise) of a right (whether vested or contingent) to receive a superannuation pension or part of a superannuation pension shall be taken to be the amount of a payment made in respect of the taxpayer in relation to the commutation of the superannuation pension or the part of the superannuation pension, as the case may be.
S 27A(5A) inserted by No 129 of 1985.
27A(5B)
For the purposes of paragraph (g) of the definition of eligible termination payment in subsection (1), the amount or value of any consideration received or receivable by a taxpayer in respect of the transfer by the taxpayer to another person (whether by assignment, declaration of trust or otherwise) of a right (whether vested or contingent) to receive an annuity or part of an annuity shall be taken to be the amount of a payment made in respect of the taxpayer in relation to the commutation of the annuity or the part of the annuity, as the case may be.
S 27A(5B) inserted by No 129 of 1985.
27A(5BA)
(Omitted by No 7 of 1993)
S 27A(5BA) inserted by No 11 of 1988.
27A(5C)
In the definition of purchase price in subsection (1):
(a) a reference to contributions made by any person to a superannuation fund to obtain superannuation benefits does not include a reference to contributions made to a superannuation fund by an employer, or by another person under an agreement to which the employer is a party, for the purpose of providing superannuation benefits for, or for dependants of, an employee of the employer; and
(b) a reference to payments made to purchase, or solely to purchase, an annuity does not include a reference to payments made by an employer, or by another person under an agreement to which the employer is a party, to purchase, or solely to purchase, an annuity for, or for dependants of, an employee of the employer.
S 27A(5C) inserted by No 129 of 1985.
27A(6)
If the Commissioner specifies in writing guidelines or principles to be applied in calculating internal roll-over amounts, an internal roll-over amount is to be calculated in accordance with those guidelines or principles.
S 27A(6) inserted by No 66 of 2003.
Former s 27A(6) omitted by No 208 of 1992; amended by No 169 of 1995.
27A(7)
For the purposes of paragraph (e) of the definition of undeducted contributions in subsection (1):
(a) a payment made to a superannuation fund shall be disregarded to the extent to which an eligible termination payment is deemed by section 27D to have been applied in making the payment to the fund;
(b) a reference in that definition to contributions made to a superannuation fund by a person other than the taxpayer in order to obtain superannuation benefits does not include a reference to payments made to a superannuation fund by an employer, or by another person under an agreement to which the employer is a party, for the purpose of providing superannuation benefits for, or for dependants of, an employee of the employer; and
(c) an eligible termination payment shall be deemed not to be attributable to so much of the purchase price of an annuity or superannuation pension as:
(i) is taken, by virtue of section 27D , to consist of an amount to which sub-subparagraph 27D(1)(b)(iii)(C) applies; and
(ii) is taken, by virtue of subsection (16) of this section, to form part of a deductible amount in relation to the annuity or superannuation pension.
S 27A(7) amended by No 208 of 1992 and substituted by No 129 of 1985.
27A(7A)
For the purposes of this Subdivision, an annuity shall be taken to be presently payable at all times after, but not before, the commencement of the first period in respect of which the annuity is payable.
S 27A(7A) inserted by No 11 of 1988.
27A(8)
For the purposes of this Subdivision, a transfer of property to, or for the benefit of, a person shall be deemed to be a payment to, or for the benefit of, the person of an amount equal to the value of the property immediately before the transfer.
27A(8A)
Where:
(a) a transfer of property to, or for the benefit of, a person is deemed by subsection (8) to be a payment to, or for the benefit of, the person; and
(b) but for this subsection, the payment would be an eligible termination payment under paragraph (a) of the definition of eligible termination payment in subsection (1);
the amount of the payment shall be reduced by the amount or value of any consideration provided, paid or payable by the person in respect of the transfer.
S 27A(8A) inserted by No 129 of 1985.
27A(9)
A reference in subsection (1) to the aggregate of periods of a particular kind or particular kinds is a reference to the period commencing on the date of commencement of the first such period and ending on the expiration of the last such period, excluding any period that is not a period of that kind, or of any of those kinds, as the case may be.
27A(10)
(Omitted by No 208 of 1992)
Former s 27A(10) substituted by No 105 of 1989 and No 129 of 1985.
27A(11)
A reference in this Subdivision to the termination of any employment of a person includes a reference to the retirement of the person from that employment and the cessation of that employment by reason of the death of the person.
27A(12)
For the purposes of this Subdivision, an eligible termination payment made in relation to a taxpayer is a qualifying eligible termination payment if it is a contributions-splitting ETP or if it is an internal roll-over amount in relation to the taxpayer or if, immediately after the eligible termination payment is made, an amount is:
(a) paid to a complying superannuation fund for either or both of the following purposes:
(i) the provision of superannuation benefits for the taxpayer in the event of his retirement or in other circumstances of a kind approved by the Commissioner;
(ii) the provision of superannuation benefits for dependants of the taxpayer in the event of the death of the taxpayer;
(b) paid for the benefit of the taxpayer to a complying ADF; or
(c) paid to a life assurance company in respect of the purchase of an annuity that:
(i) is an eligible annuity in relation to the taxpayer; and
(ii) is for the benefit of the taxpayer or for the benefit of dependants of the taxpayer in the event of the death of the taxpayer; and
(iii) if the annuity is purchased from a life assurance company - is a life assurance policy issued in Australia; or
(d) paid to an RSA held by the taxpayer.
S 27A(12) amended by No 148 of 2005, No 101 of 2004, No 66 of 2003, No 62 of 1997, No 181 of 1994, No 208 of 1992, No 61 of 1990, No 11 of 1988 and No 129 of 1985.
27A(12A)
Notwithstanding subsection (12), an eligible termination payment shall not be taken to be a qualifying eligible termination payment to the extent to which it consists of a non-qualifying component.
S 27A(12A) inserted by No 173 of 1985.
27A(12B)
A death benefit ETP is not a qualifying eligible termination payment, in spite of anything in subsection (12).
S 27A(12B) substituted by No 7 of 1993; inserted by No 11 of 1988.
27A(12BA)
Despite subsection (12), a payment from a non-resident superannuation fund is not a qualifying eligible termination payment.
S 27A(12BA) inserted by No 181 of 1994.
27A(12C)
Notwithstanding subsection (12), where:
(a) an eligible termination payment is an eligible termination payment in relation to a taxpayer (in this subsection called the receiving taxpayer ) because of the application of paragraph (d), (g) or (h) of the definition of eligible termination payment in subsection (1) to a payment (in this subsection called the capital payment ) made to the receiving taxpayer;
(b) the capital payment:
(i) is made in relation to an annuity that:
(A) has been an eligible annuity in relation to any taxpayer under paragraph (b) of the definition of eligible annuity in subsection (1);
(B) has a purchase price that consists wholly or partly of a rolled-over amount or rolled-over amounts; and
(C) was previously payable to a person who has died; and
(ii) is made to the receiving taxpayer after the death of the deceased person; and
(c) the receiving taxpayer was not the spouse of the deceased person at the time of death of the deceased person;
the eligible termination payment is not a qualifying eligible termination payment.
S 27A(12C) amended by No 7 of 1993; inserted by No 11 of 1988.
27A(12D)
(Omitted by No 7 of 1993)
S 27A(12D) inserted by No 11 of 1988.
27A(12E)
(Omitted by No 208 of 1992)
S 27A(12E) inserted by No 135 of 1990.
27A(13)
For the purposes of this Subdivision:
(a) an amount is rolled over if the amount is an internal roll-over amount or if section 27D requires the amount to be taken to have been expended in making a payment as mentioned in paragraph (12)(a), (b), (c) or (d) of this section; and
(b) an ETP or a particular part of an ETP is attributable to an earlier ETP or a particular part of an earlier ETP if and only if the later ETP or part is attributable to the earlier ETP or part, directly or indirectly, through one or more roll-overs.
S 27A(13) amended by No 66 of 2003, No 62 of 1997; substituted by No 105 of 1989.
27A(14)
Where an amount paid to a taxpayer (in this subsection referred to as the received amount ), being an eligible termination payment, an annuity or a payment made as a supplement to an annuity, would, but for former section 24BA and assuming that:
(a) subsection 27C(1A) did not apply in relation to the received amount; and
(b) no part of the received amount was taken to be applied in accordance with section 27D ,
be wholly or partly exempt from tax because of Division 1A , the following provisions have effect:
(c) this Subdivision has effect in relation to the received amount as if:
(i) references in this Subdivision to 30 June 1983 were references to 30 June 1985; and
(ii) references in this Subdivision (other than in subparagraph (a)(iii) of the definition of superannuation fund in subsection (1)) to 1 July 1983 were references to 1 July 1985; and
(d) no amount shall be included in the assessable income of the taxpayer under subsection 27C(1) in relation to the received amount.
S 27A(14) amended by No 101 of 2006 , s 3 and Sch 2 item 195, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 27A(14) amended by No 105 of 1989; inserted by No 49 of 1985.
27A(14A)
Where an amount paid to a taxpayer (in this subsection called the received amount ), being an ETP, an annuity or a payment made as a supplement to an annuity, would, apart from former section 24BB and assuming that:
(a) subsection 27C(1A) did not apply in relation to the received amount; and
(b) no part of the received amount was taken to be applied in accordance with section 27D ;
be wholly or partly exempt from tax because of Division 1A , the following provisions have effect:
(c) this Subdivision has effect in relation to the received amount as if:
(i) references in this Subdivision to 30 June 1983 were references to 30 June 1991; and
(ii) references in this Subdivision (other than in subparagraph (a)(iii) of the definition of superannuation fund in subsection (1)) to 1 July 1983 were references to 1 July 1991;
(d) no amount is to be included in the assessable income of the taxpayer under subsection 27C(1) in relation to the received amount.
S 27A(14A) amended by No 101 of 2006 , s 3 and Sch 2 item 196, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 27A(14A) inserted by No 100 of 1991.
27A(15)
(Omitted by No 167 of 1989)
Former s 27A(15) inserted by No 129 of 1985.
27A(16)
For the purposes of this Subdivision, an amount that, under section 27H , is a deductible amount in relation to an annuity or superannuation pension the purchase price of which consists wholly or partly of a rolled-over amount or rolled-over amounts shall be taken to consist of the same components as the undeducted purchase price in relation to the annuity or superannuation pension and in the same respective proportions as those components bear to the undeducted purchase price.
S 27A(16) inserted by No 129 of 1985.
27A(17)
For the purposes of this Subdivision, where the Commissioner is of the opinion that the whole or a part of a particular ETP:
(a) is not, apart from this subsection, paid from an eligible superannuation fund; and
(b) is, in effect, funded from an eligible superannuation fund;
the ETP, or the part of the ETP, as the case may be, shall be treated as if it were paid from that eligible superannuation fund.
S 27A(17) inserted by No 105 of 1989.
27A(18)
For the purposes of this Subdivision, where the Commissioner is of the opinion that a particular superannuation pension:
(a) is not, apart from this subsection, payable from an eligible superannuation fund; and
(b) is, in effect, funded from an eligible superannuation fund;
the superannuation pension shall be treated as if it were payable from that eligible superannuation fund.
S 27A(18) inserted by No 105 of 1989.
27A(19)
For the purposes of this Subdivision, the tax-free amount of a bona fide redundancy payment, or of an approved early retirement scheme payment, made during a year of income is so much of the payment as does not exceed:
(a) if the year of income is the 1994-95 year of income - the amount worked out using the formula:
| $4,000 + [ $2,000 × Years of service] |
where:
Years of service means the number of whole years in the period, or the aggregate of the periods, of the employment to which the payment relates; or
(b) if the year of income is a later year of income - the amount worked out using that formula subject to the indexation arrangements set out in subsection (20).
[ CCH Note: From 1995/96, the indexable amounts in the formula in s 27A(19)(a) have been altered under s 27A(20) as follows:
| Income year | $ | $ |
| 1994/95 | 4,000 | 2,000 |
| 1995/96 | 4,180 | 2,090 |
| 1996/97 | 4,348 | 2,174 |
| 1997/98 | 4,548 | 2,274 |
| 1998/99 | 4,712 | 2,356 |
| 1999/2000 | 4,858 | 2,429 |
| 2000/01 | 5,062 | 2,531 |
| 2001/02 | 5,295 | 2,647 |
| 2002/03 | 5,623 | 2,812 |
| 2003/04 | 5,882 | 2,941 |
| 2004/05 | 6,194 | 3,097 |
| 2005/06 | 6,491 | 3,246 |
| 2006/07 | 6,783 | 3,392 ] |
S 27A(19) inserted by No 208 of 1992.
27A(20)
The formula in subsection (19) applies for the 1995-96 year of income or a later year of income as if each indexable amount were replaced by the amount worked out using the formula:
| Indexation factor × Previous indexable amount |
where:
Indexation factor means the indexation factor for the year of income worked out under section 159SG ;
Previous indexable amount means the indexable amount for the previous year of income.
S 27A(20) inserted by No 208 of 1992.
27A(21)
In subsection (20):
"indexable amount"
means:
(a) an amount of $4,000 or $2,000 specified in the formula in subsection (19); or
(b) if that amount has previously been altered under subsection (20) - the altered amount.
S 27A(21) inserted by No 208 of 1992.
27A(22)
For the purposes of this Subdivision:
(a) an RSA is taken to be a fund; and
(b) the holder of the RSA is taken to be a member of that fund.
S 27A(22) inserted by No 62 of 1997.
S 27A inserted by No 47 of 1984.
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