Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 15/20)
Character Range: 1590236–1593176

are declared not to be employment termination payments.
      Various other terms used in describing the taxation treatment of employment termination payments are defined in the Subdivision.

Table of sections

Operative provisions
82‑130 What is an employment termination payment?
82‑135 Payments that are not employment termination payments
82‑140 Tax free component of an employment termination payment
82‑145 Taxable component of an employment termination payment
82‑150 What is an invalidity segment of an employment termination payment?
82‑155 What is a pre‑July 83 segment of an employment termination payment?
82‑160 What is the ETP cap amount?

Operative provisions

82‑130  What is an employment termination payment?
 (1) A payment is an employment termination payment if:
 (a) it is received by you:
 (i) in consequence of the termination of your employment; or
 (ii) after another person's death, in consequence of the termination of the other person's employment; and
 (b) it is received no later than 12 months after that termination (but see subsection (4)); and
 (c) it is not a payment mentioned in section 82‑135.
Note 1: If a payment would be an employment termination payment but for paragraph (b), see subsection (4) and section 83‑295.
Note 2: The holding of an office is treated as employment for this Part: see section 80‑5. Also, the termination of employment is treated as including the termination of employment by retirement or by death: see section 80‑10.

Types of employment termination payment
 (2) A life benefit termination payment is an *employment termination payment to which subparagraph (1)(a)(i) applies.
 (3) A death benefit termination payment is an *employment termination payment to which subparagraph (1)(a)(ii) applies.

Exemption from 12 month rule
 (4) Paragraph (1)(b) does not apply to you if:
 (a) you are covered by a determination under subsection (5) or (7); or
 (b) the payment is a *genuine redundancy payment or an *early retirement scheme payment.
Note: 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: see section 82‑135.
 (5) The Commissioner may determine, in writing, that paragraph (1)(b) does not apply to you if the Commissioner considers the time between the employment termination and the payment to be reasonable, having regard to the following:
 (a) the circumstances of the employment termination, including any dispute in relation to the termination;
 (b) the circumstances of the payment;
 (c) the circumstances of the person making the payment;
 (d) any other relevant circumstances.
 (6) A determination under subsection (5) is not a legislative instrument.
 (7) The Commissioner may, by legislative instrument, determine that paragraph (1)(b) does not apply to either or both of the following, as specified in the determination:
 (a) a class of payments;
 (b) a