INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-40 - RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS  

Division 82 - Pre-10 May 2006 entitlements to life benefit termination payments  

Subdivision 82-B - Transitional termination payments: general  

SECTION 82-10D   Upper cap amount  

Initial upper cap amount is $1,000,000

82-10D(1)  
Your upper cap amount in relation to a transitional termination payment you receive at a time in an income year is $1,000,000, reduced in accordance with this section. Reduction of upper cap amount for each payment

82-10D(2)  
Reduce your upper cap amount in relation to the payment (but not below zero):


(a) by the total of all the amounts (if any) included in your assessable income under subsection 82-10C(3) and subsection 82-10A(3) that you received at an earlier time (whether in the income year or in an earlier income year); and


(b) by the total amount of the taxable components of all directed termination payments (if any) received on your behalf at an earlier time (whether in the income year or in an earlier income year).

Directed termination payments - time of receipt when received by entity to which they are directed

82-10D(3)  
For this section, a directed termination payment is taken to be received on your behalf at the time the entity to which it is directed receives the payment.




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