Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:2_2:p5
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 5/6)
Character Range: 312062–314919

have become entitled at the time the employment termination payment was made or at a later time.

Payments not covered

 (6) A payment is not an early retirement scheme payment if it is a payment mentioned in section 82‑135 (apart from paragraph 82‑135(e)).

Note: Paragraph 82‑135(e) provides that the part of a genuine redundancy payment or an early retirement scheme payment worked out under section 83‑170 is not an employment termination payment.

Subdivision 83‑D—Foreign termination payments

Guide to Subdivision 83‑D

83‑230  What this Subdivision is about

      This Subdivision deals with termination payments that arise out of foreign employment.
      These payments are not employment termination payments, and are tax free (except for amounts worked out under this Subdivision).

Table of sections

Operative provisions

83‑235 Termination payments tax free—foreign resident period
83‑240 Termination payments tax free—Australian resident period

Operative provisions

83‑235  Termination payments tax free—foreign resident period

  A payment received by you is not assessable income and is not *exempt income if:
 (a) it was received in consequence of the termination of your employment in a foreign country; and
 (b) it is not a *superannuation benefit; and
 (c) it is not a payment of a pension or an *annuity (whether or not the payment is a superannuation benefit); and
 (d) it relates only to a period of employment when you were not an Australian resident.

83‑240  Termination payments tax free—Australian resident period

 (1) A payment received by you is not assessable income and is not *exempt income if:
 (a) it was received in consequence of:
 (i) the termination of your employment in a foreign country; or
 (ii) the termination of your engagement on qualifying service on an approved project (within the meaning of section 23AF of the Income Tax Assessment Act 1936), in relation to a foreign country; and
 (b) it relates only to the period of that employment or engagement; and
 (c) it is not a *superannuation benefit; and
 (d) it is not a payment of a pension or an *annuity (whether or not the payment is a superannuation benefit); and
 (e) you were an Australian resident during the period of the employment or engagement; and
 (f) the payment is not exempt from income tax under the law of the foreign country; and
 (g) for a period of employment—your foreign earnings from the employment are exempt from income tax under section 23AG of the Income Tax Assessment Act 1936; and
 (h) for a period of engagement—your *eligible foreign remuneration from the service is exempt from income tax under section 23AF of that Act.

 (2) For the purposes of subparagraph (1)(a)(ii), treat the termination of engagement on qualifying service on an approved project as including:
 (a) retirement from the engagement; and
 (b)