Federal Register of Legislation - Australian Government

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Determinations/Taxation as made
This Determination makes a payment received more than 12 months after termination of a person's employment an employment termination payment.
Administered by: Treasury
Registered 16 Nov 2007
Tabling HistoryDate
Tabled HR12-Feb-2008
Tabled Senate12-Feb-2008
Date of repeal 29 Mar 2018
Repealed by Income Tax Employment Termination Payments (12 month rule) Determination 2018

 

Employment Termination Payments (12 month rule) Legislative Instrument 2007

 

I, IAN CHARLES READ, Acting Deputy Commissioner of Taxation, make this determination under subsection 82-130(7) of the Income Tax Assessment Act 1997.

 

 

 

Ian Read

 

Acting Deputy Commissioner of Taxation

 

Dated: 12 November 2007

 

 

1.                  Name of Determination

This determination is the Employment Termination Payments (12 month rule) Determination 2007.

 

2.                  Commencement

This determination commences on the day after it is registered.

 

3.                  Application

This determination applies to a payment received after 30 June 2007 by a person if the payment is received:

(a)   either

i)        in consequence of the termination of that person’s employment, or

ii)       after another person’s death, in consequence of the termination of that other person’s employment; and

(b)   more than 12 months after that termination; and

(c)   is not a payment under section 82-135 of the Income Tax Assessment Act 1997.

In this determination, such a payment is called a late termination payment.

 

4.                  Determination

Paragraph 82-130(1)(b) of the Income Tax Assessment Act 1997 does not apply to a late termination payment if the payment is received more than 12 months after the termination of a person’s employment because:

(a)    legal action was commenced within 12 months of the termination of employment, of which the subject is either or both:

i) the person’s entitlement to the payment;

ii) the amount of the person’s entitlement; or

(b)   the payment was made by a liquidator, receiver or trustee in bankruptcy of an entity that is otherwise liable to make the payment, where that liquidator, receiver or trustee is appointed no later than 12 months after the termination of employment.

 

5.                  Definitions

In this Determination:

‘liquidator’ means a person who becomes a liquidator of a company and who has given the Commissioner of Taxation notice of that fact under subsection 260-45(2) of Schedule 1 to the Taxation Administration Act 1953.

‘receiver’ means a person who, in the capacity of receiver, or of receiver and manager, takes possession of a company’s assets for the company’s debenture holders and who has given the Commissioner of Taxation notice of that fact under subsection 260-75(2) of Schedule 1 to the Taxation Administration Act 1953.

trustee in bankruptcy’ means a person who, in the capacity of ‘the trustee’ as defined in section 5 of the Bankruptcy Act 1966, notifies the Commissioner of Taxation of the bankruptcy.