INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 82 - Employment termination payments  

Subdivision 82-C - Key concepts  

Operative provisions

SECTION 82-150   What is an invalidity segment of an employment termination payment?  

82-150(1)  
An *employment termination payment includes an invalidity segment if:


(a) the payment was made to a person because he or she stops being *gainfully employed; and


(b) the person stopped being gainfully employed because he or she suffered from ill-health (whether physical or mental); and


(c) the gainful employment stopped before the person's *last retirement day; and


(d) 2 legally qualified medical practitioners have certified that, because of the ill-health, it is unlikely that the person can ever be gainfully employed in capacity for which he or she is reasonably qualified because of education, experience or training.

82-150(2)  
Work out the amount of the invalidity segment by applying the following formula:


Amount of *employment termination payment ×         Days to retirement        
Employment days + Days to retirement

where:

days to retirement
is the number of days from the day on which the person's employment was terminated to the *last retirement day.

employment days
is the number of days of employment to which the payment relates.


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