Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 18/20)
Character Range: 1598064–1600910

payment relates occurred before 1 July 1983.
 (2) Work out the amount of the pre‑July 83 segment as follows:

           Step 1. Subtract the *invalidity segment (if any) from the *employment termination payment.
           Step 2. Multiply the amount at step 1 by the fraction:

82‑160  What is the ETP cap amount?
  The ETP cap amount for the 2007‑2008 income year is $140,000. This amount is indexed annually.
Note 1: Subdivision 960‑M shows how to index amounts. However, annual indexation does not necessarily increase the ETP cap amount: see section 960‑285.
Note 2: The ETP cap amount may be reduced for the purpose of working out tax offsets for individual employment termination payments.

Division 83—Other payments on termination of employment

Table of Subdivisions
 Guide to Division 83
83‑A Unused annual leave payments
83‑B Unused long service leave payments
83‑C Genuine redundancy payments and early retirement scheme payments
83‑D Foreign termination payments
83‑E Other payments

Guide to Division 83

83‑1  What this Division is about
      This Division sets out the taxation treatment for a variety of payments, other than employment termination payments, that are made in consequence of the termination of employment.

Subdivision 83‑A—Unused annual leave payments

Guide to Subdivision 83‑A

83‑5  What this Subdivision is about
      You are entitled to a tax offset for a payment that you receive in consequence of the termination of your employment that is for unused annual leave.

Table of sections

Operative provisions
83‑10 Unused annual leave payment is assessable
83‑15 Entitlement to tax offset

Operative provisions

83‑10  Unused annual leave payment is assessable

Application—annual leave
 (1) This section applies to leave (annual leave) of the following types (whether it is made available as an entitlement or as a privilege):
 (a) leave ordinarily known as annual leave, including recreational leave and annual holidays;
 (b) any other leave made available in circumstances similar to those in which the leave mentioned in paragraph (a) is ordinarily made available.

Unused annual leave payments
 (2) Your assessable income includes an *unused annual leave payment that you receive.
 (3) A payment that you receive in consequence of the termination of your employment is an unused annual leave payment if:
 (a) it is for annual leave you have not used; or
 (b) it is a bonus or other additional payment for annual leave you have not used; or
 (c) it is for annual leave, or is a bonus or other additional payment for annual leave, to which you were not entitled just before the employment termination, but that would have been made available to you at a later time if it were not for the employment termination.

83‑15  Entitlement to tax offset
  You are entitled to a *tax offset to ensure that the