{"id":"F2019L00409","name":"Income Tax: Employment Termination Payments Redundancy Trusts (12 month rule) Determination 2019","slug":"income-tax-employment-termination-payments-redundancy-trusts-12-month-rule-determination-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":98999,"registerId":"commonwealth-F2019L00409-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1. Name of determination","sectionType":"part","heading":"1. Name of determination","content":"## 1. Name of determination\n\nThis determination is the Income Tax: Employment Termination Payments Redundancy Trusts (12 month rule) Determination 2019.","sortOrder":0},{"sectionNumber":"2. Commencement","sectionType":"part","heading":"2. Commencement","content":"## 2. Commencement\n\nThis determination is taken to have commenced on the day after it is registered on the Federal Register of Legislation.","sortOrder":1},{"sectionNumber":"3. Application","sectionType":"part","heading":"3. Application","content":"## 3. Application\n\nThis determination applies to a payment received by a person, after the date that this determination is registered on the Federal Register of Legislation, if the payment is received from a redundancy trust:\n\n(a) either\n\n(i) in consequence of the termination of that person’s employment; or\n\n(ii) after another person’s death, in consequence of the termination of that other person’s employment; and\n\n(b) more than 12 months after that termination; and\n\n(c) is not a payment under section 82-135 of the Income Tax Assessment Act 1997 (ITAA 1997).\n\nIn this determination, such a payment is called a late termination payment.","sortOrder":2},{"sectionNumber":"4. Repeal of previous determination","sectionType":"part","heading":"4. Repeal of previous determination","content":"## 4. Repeal of previous determination\n\nThis determination replaces Employment Termination Payments Redundancy Trusts (12 month rule) Determination 2009 (F2009L00716) registered on 12 March 2009. The previous determination is repealed on commencement of this determination.","sortOrder":3},{"sectionNumber":"5. Determination","sectionType":"part","heading":"5. Determination","content":"## 5. Determination\n\nThis determination is made in accordance with paragraph 82-130(7) of the ITAA 1997.\n\nParagraph 82-130(1)(b) of the ITAA 1997 does not apply to a late termination payment if:\n\n(a) the person whose employment was terminated was a member of a redundancy trust and an application for the payment was lodged with the trustee of the redundancy trust within 12 months of the person becoming entitled to the payment under the terms of the trust deed of the redundancy trust; and\n\n(b) the payment was made by the trustee of the redundancy trust:\n\n(i) as soon as practicable after receipt of the application for payment; or\n\n(ii) no later than 2 years after the termination of the person's employment that led to the entitlement;\n\nwhichever occurs earlier.","sortOrder":4},{"sectionNumber":"6. Definitions","sectionType":"part","heading":"6. Definitions","content":"## 6. Definitions\n\nIn this Determination:\n\n‘redundancy trust’ means:\n\n(a) a fund that:\n\n(i) is endorsed as an approved worker entitlement fund under subsection 58PB(3) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA); or\n\n(ii) the entity that operates the fund is endorsed for the operation of the fund under subsection 58PB (3A) of the FBTAA; or\n\n(b) a fund that, just before 28 June 2011, was an approved worker entitlement fund under subsection 58PB(2) of the FBTAA.\n\n‘member of a redundancy trust’ means a person who is entitled to a payment/s under the terms of the redundancy trust's deed due to termination of employment.","sortOrder":5}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This is a straightforward remake of the 2009 determination with identical scope. It maintains the same narrow purpose: preserving concessional tax treatment for delayed redundancy trust payments when administrative delays occur. No expansion of coverage or purpose."},"complexity_factors":["Only 6 short sections with minimal cross-referencing","2 defined terms ('redundancy trust' and 'member of a redundancy trust')","Single operative provision with two clear conditions (paragraph 5(a) and 5(b))","Simple temporal logic (12-month application window, 2-year payment deadline, 'whichever occurs earlier')","Limited external references (only to ITAA 1997 section 82-130 and FBTAA section 58PB for fund endorsement status)","No nested exceptions or conditional layering"],"plain_english_summary":"This rule preserves favourable tax treatment for redundancy payments held in approved redundancy trusts even if paid more than 12 months after job termination. It affects workers (and their estates) who are members of such trusts and the trustees who administer payments.\n\nA late payment keeps concessionary tax status where the worker applied within 12 months of entitlement and the trustee pays promptly — either as soon as practicable after the application or within two years of termination."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument replaces the 2009 determination (s4) but, on its face, preserves the same conditional exception: late redundancy trust payments are excluded from paragraph 82-130(1)(b) where a member applies within 12 months and the trustee pays promptly or by two years after termination (s5). The text does not expressly broaden or narrow the class of payments beyond those conditions."},"complexity_factors":["Cross-references to income tax provisions — relies on paragraph 82-130(7) and excludes application of paragraph 82-130(1)(b) when conditions met (s5).","Timing rules — requires member application within 12 months of entitlement and trustee payment either 'as soon as practicable' or by 2 years after termination, whichever is earlier (s5(a) and s5(b)(i)-(ii)).","Definitions reference the Fringe Benefits Tax Assessment Act — 'redundancy trust' depends on endorsement or prior approval under subsection 58PB(3), 58PB(3A) or historical subsection 58PB(2) before 28 June 2011 (s6).","Departure from ordinary timing — applies only to payments received more than 12 months after termination (s3), creating a narrow exception to standard ETP timing rules.","Administrative discretion — phrase 'as soon as practicable' imposes a fact-specific judgement on trustees about timing of payment (s5(b)(i)).","Compliance burden concentrated on members and trustees — members must lodge applications within a tight window; trustees must document prompt action or meet the 2-year limit (s5(a), s5(b)).","Repeal and replacement of prior instrument — this instrument replaces the 2009 determination, requiring stakeholders to note the new text on commencement (s4)."],"plain_english_summary":"This instrument defines when a payment from a redundancy trust received more than 12 months after employment ended is still treated as a qualifying employment termination payment for tax purposes. It affects employees (or their estates) who are members of redundancy trusts and trustees who pay those benefits: members must apply within 12 months of entitlement and trustees must pay promptly or no later than two years after termination for the payment to avoid paragraph 82-130(1)(b) of the ITAA 1997."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/income-tax-employment-termination-payments-redundancy-trusts-12-month-rule-determination-2019","history":"/api/acts/income-tax-employment-termination-payments-redundancy-trusts-12-month-rule-determination-2019/history","analysis":"/api/acts/income-tax-employment-termination-payments-redundancy-trusts-12-month-rule-determination-2019/analysis","conflicts":"/api/acts/income-tax-employment-termination-payments-redundancy-trusts-12-month-rule-determination-2019/conflicts","importantCases":"/api/acts/income-tax-employment-termination-payments-redundancy-trusts-12-month-rule-determination-2019/important-cases","documents":"/api/acts/income-tax-employment-termination-payments-redundancy-trusts-12-month-rule-determination-2019/documents"}}