TERMINATION PAYMENTS TAX IMPOSITION ACT 1997 (REPEALED)

SECTION 1  

1   SHORT TITLE  
This Act may be cited as the Termination Payments Tax Imposition Act 1997.

SECTION 2  

2   COMMENCEMENT  
This Act commences on the day on which it receives the Royal Assent.

SECTION 3  

3   INTERPRETATION  
Expressions used in this Act that are defined by the Termination Payments Tax (Assessment and Collection) Act 1997 have the same meanings as in that Act.

SECTION 4  

4   IMPOSITION OF TERMINATION PAYMENTS SURCHARGE  
The termination payments surcharge that is payable on a termination payment made to or for a taxpayer under the Termination Payments Tax (Assessment and Collection) Act 1997 is imposed by this Act.

Note:

Surcharge is not payable on a termination payment made on or after 1 July 2005 - see subsection 7(2) of the Termination Payments Tax (Assessment and Collection) Act 1997.

SECTION 5   RATE OF TERMINATION PAYMENTS SURCHARGE  

5(1AA)    
In this section:

higher income amount
means:

(a) for the 2003-2004 financial year - $114,981; and

(b) for the 2004-2005 financial year - that amount as indexed under section 6.

lower income amount
means:

(a) for the 2003-2004 financial year - $94,691; and

(b) for the 2004-2005 financial year - that amount as indexed under section 6.

maximum surcharge percentage
means:

(a) for the 2003-2004 financial year - 14.5%; and

(b) for the 2004-2005 financial year - 12.5%.

(c) (Repealed by No 102 of 2005)

5(1)    
If the taxpayer's adjusted taxable income for a financial year ( relevant adjusted taxable income ) is not less than the lower income amount but is less than the higher income amount, the rate of the termination payments surcharge payable on a termination payment made to or for the taxpayer in that year is the percentage (calculated to 5 decimal places) of the amount of the payment worked out using the formula:

Relevant adjusted taxable income − Lower income amount A

where:

A
is:

Higher income amount − Lower income amount Maximum surcharge percentage × 100

5(1A)    
If the percentage calculated under subsection (1) for a financial year would, if it were worked out to 6 decimal places, end with a number greater than 4, the number so calculated is increased by 0.00001.

5(2)    
If the taxpayer's adjusted taxable income for a financial year is equal to, or greater than, the higher income amount, the rate of the termination payments surcharge payable in respect of a termination payment made to or for the taxpayer in that year is the maximum surcharge percentage of the amount of the payment.

SECTION 6   INDEXATION  

6(1)   Indexation of certain amounts for 2004-05 financial year.  

Section 5 applies in relation to an indexing financial year as if each indexable amount were replaced by the amount worked out using the formula:

Previous indexable amount × Relevant indexation factor

where:

previous indexable amount means the indexable amount for the financial year immediately before the indexing financial year.

relevant indexation factor means the indexation factor for the indexing financial year.

6(2)   Rounding off of indexed amounts.  

If an amount worked out under subsection (1) is an amount of dollars and cents:

(a) if the number of cents is less than 50 - the amount is to be rounded down to the nearest whole dollar; or

(b) otherwise - the amount is to be rounded up to the nearest whole dollar.

6(3)   Indexation factor.  

The indexation factor for an indexing financial year is the number calculated, to 3 decimal places, using the formula:

Index number for last quarter in current March year  Index number for last quarter in previous March year

where:

current March year means the period of 12 months ending on 31 March immediately before the indexing financial year.

previous March year means the period of 12 months immediately before the current March year.

6(4)   Rounding up of indexation factor.  

If the number calculated under subsection (3) for a financial year would, if it were worked out to 4 decimal places, end with a number greater than 4, the number so calculated is increased by 0.001.

6(5)   Change in index numbers.  

If, at any time, whether before or after the commencement of this Act, the Australian Statistician has published or publishes an index number for a quarter in substitution for an index number previously published for the quarter, the publication of the later index number is to be disregarded.

6(6)   Indexable amounts to be published.  

The Commissioner must publish before, or as soon as practicable after, the start of the 2004-05 financial year the indexable amounts as replaced under subsection (1) for that year.

6(7)   Definitions.  

In this section:

indexable amount
means:

(a) an amount stated in section 5; or

(b) if that amount has previously been altered under this section - the altered amount.

indexing financial year
means the 2004-05 financial year.

index number
, for a quarter, means the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter published by the Australian Statistician.

Note:

For the purposes of this section, Australian Statistician means the Australian Statistician referred to in subsection 5(2) of the Australian Bureau of Statistics Act 1975.