Taxation Determination

TD 94/8W

Income tax: how is the proportion of a lump sum payment on termination of employment that relates to unused annual leave that accrued in respect of service before 18 August 1993 calculated for the purposes of section 159S of the Income Tax Assessment Act 1936 ?

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Notice of Withdrawal

Taxation Determination TD 94/8 is withdrawn with effect from today.

1. TD 94/8 sets out the formula for determining the pre-18 August 1993 portion of unused annual leave payments on termination of employment.

2. Sections 26AC and 159S of the Income Tax Assessment Act 1936 which are referred to in the TD were repealed with effect from 1 July 2007 and rewritten into sections 83-10 and 83-15 of the Income Tax Assessment Act 1997.

3. There is information on the ATO website at www.ato.gov.au which provides guidance to employers in calculating the pre-18 August 1993 component. There is therefore no further need for the Determination.

Commissioner of Taxation
16 May 2018

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References

ATO references:
NO 1-DRN6EI8

Legislative References:
ITAA 26AC;
ITAA 159S