Taxation Ruling

TR 2009/2A1 - Addendum

Income tax: genuine redundancy payments

Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Ruling TR 2009/2 to correct a misquote of the legislative provision.

TR 2009/2 is amended as follows:

1. Paragraph 281

Omit the paragraph; substitute:

Further conditions for a genuine redundancy payment
281. Before a payment that meets the basic redundancy requirement in subsection 83-175(1) qualifies as a genuine redundancy payment, all other conditions in section 83-175 must be met. These conditions are:

the dismissal must be made before the person turns 65 or an earlier mandatory age of retirement - paragraph 83-175(2)(a);
the payment must be made before the end of a fixed period of employment - subparagraph 83-175(2)(a)(ii);
the payment must not exceed an arm's length amount in the event that the employer and employee are not dealing at arm's length - paragraph 83-175(2)(b);
there must be no stipulated arrangement to employ the person after the termination - paragraph 83-175(2)(c); and
the payment must not be in lieu of superannuation benefits - subsection 83-175(3).

This Addendum applies on and from 30 October 2013.

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Commissioner of Taxation
30 October 2010

References

ATO references:
NO 1-52RJ1FF

ISSN 1039-0731

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© 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).