Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1068a:p5
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1068A (pt 5/8)
Character Range: 1957765–1960496

for the significance of the person's reduction for ordinary income.
Note 2: The application of the ordinary income test is affected by provisions concerning the following:
(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);
(b) business income (sections 1074 and 1075);
(c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);
(d) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);
(e) disposal of income (sections 1106 to 1111).

     Directed termination payments excluded
 1068A‑E2 If:
 (a) a person's employment has been terminated; and
 (b) as a result the person is entitled to a lump sum payment from the person's former employer; and
 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997;
the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

Certain leave payments taken to be ordinary income—employment continuing
 1068A‑E3 If:
 (a) a person is employed; and
 (b) the person is on leave for a period; and
 (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of the leave period;
the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain termination payments taken to be ordinary income
 1068A‑E4 If:
 (a) a person's employment has been terminated; and
 (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);
the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.

More than one termination payment on a day
 1068A‑E5 If:
 (a) the person is covered by point 1068A‑E4; and
 (b) the person receives more than one termination payment on a day;
the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing
 1068A‑E6 If the person is covered by point 1068A‑E3, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated
 1068A‑E7 If the person is covered by point 1068A‑E4, the income