Commonwealth Consolidated Acts

TERMINATION PAYMENTS TAX (ASSESSMENT AND COLLECTION) ACT 1997 - SECT 7

Act provides for surcharge on termination payments

             (1)  This Act provides for the payment of surcharge on certain payments ( termination payments ) made to or for high‑earning taxpayers (see subsection 8(2)) in consequence of the termination of their employment.

Definition of termination payment

             (2)  A termination payment is a payment that:

                     (a)  is made after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996 and before 1 July 2005; and

                     (b)  is the retained amount of an eligible termination payment for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act because of paragraph (a) of the definition of eligible termination payment in subsection 27A(1) of that Act;

but does not include the retained amount of any post‑June 1994 invalidity component or CGT exempt component of such a payment or an eligible termination payment from an employee share acquisition scheme.