S 27E repealed by No 15 of 2007, s 3 and Sch 1 item 3, applicable to the 2007-2008 income year and later years. S 27E formerly read:
SECTION 27E APPROVED EARLY RETIREMENT SCHEME PAYMENTS
27E(1)
[Requirements for approval]
A scheme that provides for the termination of employment of employees is, for the purpose of this section, an approved early retirement scheme if, and only if
-
(a)
employees of the employer in one of the following categories, and no other employees of the employer, may participate in the scheme:
(i)
all employees of the employer;
(ii)
all employees of the employer who have attained a particular age;
(iii)
all employees of the employer who have a particular occupational skill;
(iv)
all employees of the employer who have a particular occupational skill and who have attained a particular age;
(v)
all employees of the employer who constitute a class of employees approved by the Commissioner for the purposes of this paragraph;
(b)
the scheme is, or is to be, implemented by the employer with a view to rationalising or re-organising the operations of the employer by means of one or more of the following:
(i)
replacement of employees having a particular occupational skill with employees having a different occupational skill;
(ii)
replacement of employees of, or over, a particular age or ages, being an age or ages not less than 55 years, with employees of a younger age or ages;
(iii)
cessation, or reduction in output, of, or of part of, the operations of the employer;
(iv)
moving the location of, or of part of, the operations of the employer;
(v)
introduction of new technology, processes or systems, or increases in productivity;
(vi)
any other change to the operations of the employer or to the nature of the work-force of the employer approved by the Commissioner for the purposes of this paragraph; and
(c)
the Commissioner has, before the scheme is implemented, approved the scheme as an approved early retirement scheme for the purposes of this section.
27E(2)
[Requirement not complied with]
Where a requirement specified in subsection (1) is not complied with in relation to a scheme and the Commissioner is satisfied that, by reason of special circumstances that exist in relation to the scheme, it would be reasonable for that requirement to be taken to have been complied with, subsection (1) has effect as if that requirement had been complied with.
27E(3)
[
"
special circumstances
"
]
For the purposes of the application of subsection (2) in relation to a scheme, a reference to special circumstances includes a reference to the circumstance that the scheme was implemented before the commencement of this section.
27E(4)
[Approved early retirement scheme payment]
Where:
(a)
an eligible termination payment is made in relation to a taxpayer in consequence of the termination of any employment of the taxpayer at a particular time (in this section referred to as the
"
termination time
"
) in accordance with an approved early retirement scheme;
(aa)
if the eligible termination payment is made on or after 1 July 1994
-
the payment was not made to the taxpayer from an eligible superannuation fund;
(b)
the termination time was before:
(i)
if there was a date before the sixty-fifth anniversary of the birth of the taxpayer on which the termination of the employment of the taxpayer would necessarily have occurred by reason of the taxpayer attaining a particular age or completing a particular period of service
-
that date; or
(ii)
in any other case
-
the sixty-fifth anniversary of the birth of the taxpayer;
(c)
if the Commissioner, having regard to any connection between the employer and the taxpayer and to any other relevant circumstances, is satisfied that the employer and the taxpayer were not dealing with each other at arm
'
s length in relation to the termination of the employment of the taxpayer
-
the amount of the eligible termination payment is not greater than the amount of an eligible termination payment that could reasonably be expected to have been made in relation to the taxpayer if the employer and the taxpayer had been dealing with each other at arm
'
s length in relation to the termination of the employment of the taxpayer; and
(d)
there was, at the termination time, no agreement in force between the taxpayer and the employer, or the employer and another person, to employ the taxpayer after the termination time;
so much of the eligible termination payment as exceeds the amount (in this section referred to as the
"
termination amount
"
) of an eligible termination payment that could reasonably be expected to have been made in relation to the taxpayer if the termination of the employment had occurred at the termination time, otherwise than in accordance with the approved early retirement scheme, is an approved early retirement scheme payment in relation to the taxpayer.
History
S 27E(4) amended by No 208 of 1992 and No 129 of 1985.
27E(5)
[
"
forgone benefit part
"
]
For the purposes of subsection (4), where:
(a)
in the opinion of the Commissioner, it is appropriate to regard a part (in this subsection referred to as the
"
forgone benefit part
"
) of an eligible termination payment made in relation to a taxpayer as having been made in lieu of superannuation benefits to which the taxpayer may have been entitled at the termination time or a later time; and
(b)
the forgone benefit part would not, but for this subsection, be included in the termination amount,
the termination amount shall include the forgone benefit part.
History
S 27E(5) inserted by No 129 of 1985.
27E(6)
[Para (ja) of definition of
"
eligible termination payment
"
]
For the purposes of this section, it is to be assumed that paragraph (ja) of the definition of
eligible termination payment
in subsection
27A(1)
had not been enacted.
History
S 27E(6) inserted by No 208 of 1992.
S 27E inserted by No 47 of 1984.
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