Taxation Laws Amendment (Superannuation) Act 1992 (208 of 1992)
Part 2 AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Division 10 Amendments relating to the components of ETPs known as bona fide redundancy payments, approved early retirement scheme payments and invalidity payments
53 After section 27CA of the Principal Act the following section is inserted
Exemption from tax-post-June 1994 invalidity component and tax-free amount of bona fide redundancy payment or approved early retirement scheme payment
(Exemption)
"27CB.(1) If:
(a) an ETP is made in relation to a taxpayer on or after 1 July 1994; and
(b) the ETP includes any of the following amounts ('exempt amounts'):
(i) a post-June 1994 invalidity component;
(ii) a tax-free amount of a bona fide redundancy payment;
(iii) a tax-free amount of an approved early retirement scheme payment;
then:
(c) the taxpayer's assessable income does not include the exempt amount; and
(d) the exempt amount is to be ignored in working out whether a capital gain accrues to the taxpayer under Part IIIA in respect of the making of the ETP.
(Tax-free amount of bona fide redundancy payment, or approved early retirement scheme payment, to be treated as part of ETP)
"(2) For the purposes of subsection (1), it is to be assumed that paragraph (ja) of the definition of 'eligible termination payment' in subsection 27A(1) had not been enacted.".
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).