Document ID: chunk:federal_register_of_legislation:C2025C00014:section:23ag:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 23AG (pt 3/5)
Character Range: 125255–127863

the year of income as, in the opinion of the Commissioner, may appropriately be related to that assessable income; and
 (f) the amount calculated using the formula in subsection (4).
 (4) The formula referred to in paragraph (3)(f) is:

where:
Apportionable deductions means the number of whole dollars in the apportionable deductions allowable to the taxpayer in relation to the year of income.
Other taxable income means the amount that, apart from paragraph (3)(f), would be represented by the component Other taxable income in subsection (3).
Notional gross taxable income means the number of whole dollars in the amount that would have been the taxpayer's taxable income of the year of income if the exempt amount were not exempt income.
 (5) Subsection (3) applies to a taxpayer in respect of income of a year of income as if any payment covered by section 83‑240 or 305‑65 of the Income Tax Assessment Act 1997 that related to the termination of employment that was made in respect of the taxpayer during that year of income were income of the taxpayer of that year of income that is exempt from tax under this section.
 (6) For the purposes of this section, a period during which a person is engaged in foreign service includes any period during which the person is, in accordance with the terms and conditions of that service:
 (a) absent on recreation leave, other than:
 (i) leave wholly or partly attributable to a period of service or employment other than that foreign service;
 (ii) long service leave, furlough, extended leave or leave of a similar kind (however described); or
 (iii) leave without pay or on reduced pay; or
 (b) absent from work because of accident or illness.
 (6A) 2 or more periods in which a person has been engaged in foreign service are together taken to constitute a continuous period of foreign service until:
 (a) the end of the last of the 2 or more periods; or
 (b) a time (if any), since the start of the first of the 2 or more periods, when the person's total period of absence exceeds 1/6 of the person's total period of foreign service;
whichever happens sooner.
Example: Kate is engaged in foreign service for 20 days, is absent for 2 days and is then engaged in foreign service for 10 days. These 2 periods of foreign service constitute a continuous period of foreign service, because the total period of absence is never more than 1/10 of the total period of foreign service.
 Kate is then absent for 5 days before commencing a further period of foreign service. No matter how long the further period lasts, it can never constitute a continuous period of