Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1068a:p7
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1068A (pt 7/8)
Character Range: 1962713–1965575

of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions
 1068A‑E12 In points 1068A‑E3 to 1068A‑E12 (inclusive):
leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.
period to which the payment relates means:
 (a) if the payment is a leave payment—the leave period to which the payment relates; or
 (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or
 (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if:
 (i) the person's employment had continued; and
 (ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
redundancy payment includes a payment in lieu of notice, but does not include a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997.
termination payment includes:
 (a) a redundancy payment; and
 (b) a leave payment relating to a person's employment that has been terminated; and
 (c) any other payment that is connected with the termination of a person's employment.

Payment of arrears of periodic compensation payments
 1068A‑E13 If:
 (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving a compensation affected payment; and
 (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;
the person is taken to receive, on each day in the periodic payments period, an amount calculated by dividing the amount received by the number of days in the periodic payments period.
Note: For compensation affected payment and periodic payments period see section 17.

How to calculate a person's ordinary income free area
 1068A‑E14 A person's ordinary income free area is worked out using Table E. The ordinary income free area is the amount in Column 2 plus the additional amount in Column 4 for each dependent child of the person.

Table E—Ordinary income free area
Column 1                           Column 2                  Column 3                       Column 4                       Column 5
Item                               Basic free area per year  Basic free area