ATO Interpretative Decision
ATO ID 2001/542 (Withdrawn)
Superannuation
Superannuation, retirement and employment termination: Assessable income includes post-June 83 taxed element.FOI status: may be released
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This ATO ID is withdrawn as it is a simple restatement of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Whether the post-June 1983 taxed element of an eligible termination payment (ETP) received by the taxpayer is assessable.
Decision
Yes. The post-June 1983 taxed element of an ETP received by the taxpayer is assessable.
Facts
An ETP was included as assessable income in the taxpayer's tax return.
The notice of assessment was issued.
The total amount of the ETP consisted of a post-June 1983 taxed element which was paid by a complying fund.
The taxpayer was less than 55 years old at the time of the payment of the ETP.
Reasons for Decision
The ETP shown on the taxpayer's tax return is fully assessable as a post-June 1983 taxed element under subsection 27B(1) of the Income Tax assessment Act 1936 (ITAA 1936) and taxable at full marginal income rates but subject to an entitlement to a rebate under section 159SA of ITAA 1936. As the taxpayer is under 55 years old, the maximum rate of tax on that fully assessable amount is 20% plus 1.5% medicare levy.
Date of decision: 18 September 2001Year of income: Year ended 30 June 1997
Legislative References:
Income Tax Assessment Act 1936
subsection 27A(1)
subsection 27B(1)
section 159SA
Keywords
Eligible termination payments
ISSN: 1445-2782
| Date: | Version: | |
| 18 September 2001 | Original statement | |
| You are here | 9 April 2010 | Archived |