{"id":"C2004A05171","name":"Termination Payments Tax (Assessment and Collection) Act 1997","slug":"termination-payments-tax-assessment-and-collection-act-1997","collection":"act","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":"73 of 1997","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7733,"registerId":"commonwealth-C2004A05171-current","compilationNumber":null,"startDate":"2026-03-30","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title [see Note 1]","content":"#### 1 Short title \\[see Note 1\\]\n\n  This Act may be cited as the Termination Payments Tax (Assessment and Collection) Act 1997.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement [see Note 1]","content":"#### 2 Commencement \\[see Note 1\\]\n\n  This Act commences on the day on which it receives the Royal Assent.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Act to bind Crown","content":"#### 3 Act to bind Crown\n\n  (1) This Act binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory, of the Northern Territory and of Norfolk Island.\n  (2) Nothing in this Act permits the Crown to be prosecuted for an offence.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Extension to Territories","content":"#### 4 Extension to Territories\n\n  This Act extends to Norfolk Island, the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Object of Act","content":"#### 5 Object of Act\n\n  The object of this Act is to provide for the assessment and collection of the termination payments surcharge. The surcharge is payable on payments of kinds commonly known as golden handshakes that are made to high‑income taxpayers in consequence of the termination of their employment.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Outline of Act","content":"#### 6 Outline of Act\n\n  The following is a simplified outline of this Act.\n\n• If any termination payments have been or are made to or for a taxpayer after 7.30 pm on 20 August 1996 and before 1 July 2005, the Commissioner will calculate the taxpayer’s adjusted taxable income for the financial year in which the payments were or are made.\n\n• If the amount calculated is greater than the surcharge threshold, the Commissioner will calculate the rate of surcharge and assess the amount of surcharge payable by the taxpayer on the payments. Only part of certain employment‑related termination payments is subject to the surcharge.\n\n• If, after the assessment of surcharge, the taxpayer’s adjusted taxable income is found to be different from the amount that was previously calculated or the termination payments are found to be different from the amount on which the assessment was based, the Commissioner may amend the assessment.\n\n• If liability for surcharge is increased as a result of an amendment of an assessment, the general interest charge is payable on the additional surcharge.\n\n A taxpayer may object against an assessment of surcharge in the way set out in Part IVC of the Taxation Administration Act 1953 for objecting against assessment of income tax.\n\n• A late payment penalty applies if surcharge is not paid on time.","sortOrder":6},{"sectionNumber":"Part 2","sectionType":"part","heading":"Liability to surcharge","content":"## Part 2—Liability to surcharge","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Application","content":"#### 7 Application\n\n  Act provides for surcharge on termination payments\n  (1) This Act provides for the payment of surcharge on certain payments (termination payments) made to or for high‑earning taxpayers (see subsection 8(2)) in consequence of the termination of their employment.\n  Definition of termination payment\n  (2) A termination payment is a payment that:\n    (a) is made after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996 and before 1 July 2005; and\n    (b) is the retained amount of an eligible termination payment for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act because of paragraph (a) of the definition of eligible termination payment in subsection 27A(1) of that Act;\n  but does not include the retained amount of any post‑June 1994 invalidity component or CGT exempt component of such a payment or an eligible termination payment from an employee share acquisition scheme.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Termination payments surcharge","content":"#### 8 Termination payments surcharge\n\n  Surcharge payable on termination payments\n  (1) Subject to subsection (1A), termination payments surcharge is payable on any termination payments made to or for a taxpayer.\n  No surcharge is payable on excessive part of termination payments\n  (1A) In the case of a termination payment made after 7.30 pm by legal time in the Australian Capital Territory on 22 May 2001, surcharge is not payable on any part of the payment that the Commissioner has determined under section 140R of the Income Tax Assessment Act to be in excess of the RBLs of the taxpayer.\n  No surcharge is payable unless adjusted taxable income is greater than surcharge threshold\n  (2) Surcharge is payable only if the taxpayer’s adjusted taxable income for the financial year in which the payments are made is greater than the surcharge threshold for the financial year.\n  No surcharge is payable by residents of external Territories\n  (3) Surcharge is not payable on any termination payments made to or for a taxpayer in a financial year if the taxpayer is a Territory resident for the purposes of Division 1A of Part III of the Income Tax Assessment Act as it applies to the year of income that comprises that financial year.\n  Taxpayer liable for surcharge\n  (4) The taxpayer is liable to pay the surcharge.","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Surcharge payable only on part of certain termination payments","content":"#### 9 Surcharge payable only on part of certain termination payments\n\n  (1) This section applies if a termination payment has been or is made to or for a taxpayer after 20 August 1996.\n  (2) In the case of a termination payment made at or before 7.30 pm by legal time in the Australian Capital Territory on 22 May 2001, surcharge is payable only on the part of the termination payment that is worked out using the formula:\n\n![](image.002.png)\n\n  (3) In the case of a termination payment made after 7.30 pm by legal time in the Australian Capital Territory on 22 May 2001, surcharge is payable only on the part of the termination payment that is worked out using the formula:\n\n![](image.003.png)\n\n  (4) For the purposes of this section:\n\n> excessive component means the part (if any) of the termination payment that the Commissioner has determined under section 140R of the Income Tax Assessment Act to be in excess of the RBLs of the taxpayer.\n\n> post‑20 August 1996 period means the number of days in the period of the taxpayer’s employment for which the termination payment was made that occurred after 20 August 1996.\n\n> total period means the number of days in the period of the taxpayer’s employment for which the termination payment was made.","sortOrder":10},{"sectionNumber":"10","sectionType":"section","heading":"Surcharge threshold","content":"#### 10 Surcharge threshold\n\n  Surcharge threshold for 1996‑97 financial year\n  (1) The surcharge threshold for the 1996‑97 financial year is $70,000.\n  Surcharge threshold for later financial year\n  (2) The surcharge threshold for a later financial year is the amount calculated using the formula:\n\n![](image.004.png)\n\n  where:\n\n> previous surcharge threshold means the surcharge threshold for the financial year immediately before the financial year for which the surcharge threshold is being calculated.\n\n> indexation factor means the number calculated under subsections (4) and (5) for the financial year for which the surcharge threshold is being calculated.\n\n  Rounding off of amount of surcharge threshold\n  (3) If an amount worked out for the purposes of subsection (2) is an amount of dollars and cents:\n    (a) if the number of cents is less than 50—the amount is to be rounded down to the nearest whole dollar; or\n    (b) otherwise—the amount is to be rounded up to the nearest whole dollar.\n  Indexation factor\n  (4) The indexation factor for a financial year is the number calculated, to 3 decimal places, using the formula:\n\n![](image.005.png)\n\n  where:\n\n> 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.\n\n> current March year means the period of 12 months ending on 31 March immediately before the financial year for which the surcharge threshold is being calculated.\n\n> previous March year means the period of 12 months immediately before the current March year.\n\n  Rounding up of indexation factor\n  (5) If the number calculated under subsection (4) 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.\n  Change in index numbers\n  (6) 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.\n  Surcharge threshold to be published\n  (7) The Commissioner must publish before, or as soon as practicable after, the start of the 1997‑98 financial year, and before the start of each later financial year (being a financial year that ends before 1 July 2005), the surcharge threshold for the financial year.\n\n> 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.","sortOrder":11},{"sectionNumber":"Part 3","sectionType":"part","heading":"Assessment and collection of surcharge","content":"## Part 3—Assessment and collection of surcharge","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Assessment of liability to pay surcharge","content":"#### 11 Assessment of liability to pay surcharge\n\n  Commissioner to assess surcharge\n  (1) For each financial year (being a financial year that ends before 1 July 2005) in which termination payments are made to or for a taxpayer, the Commissioner must make an assessment that:\n    (a) calculates the taxpayer’s adjusted taxable income; and\n    (b) if the adjusted taxable income is greater than the surcharge threshold:\n    (i) calculates the termination payments; and\n    (ii) calculates the rate of surcharge that applies to the taxpayer; and\n    (iii) specifies the amount of the surcharge payable or, if no surcharge is payable, states that a nil amount of surcharge is payable; and\n    (c) if the adjusted taxable income is equal to or less than the surcharge threshold—states that a nil amount of surcharge is payable.\n  When surcharge is payable\n  (2) Surcharge assessed under subsection (1) is payable within one month after the day on which the assessment is made.\n\n> Note: For provisions about collection and recovery of termination payments surcharge and other related amounts, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.\n\n  Notice of assessment\n  (3) When an assessment (including an amended assessment) is made, the Commissioner must, subject to subsection (4), give notice of the assessment to the taxpayer.\n  No notice if nil amount assessed\n  (4) The Commissioner is not required under subsection (3) to give a notice of an assessment if the assessment states that a nil amount of surcharge is payable.\n  Particulars in notice of assessment\n  (5) A notice of assessment must include particulars of the matters contained in the assessment under subsection (1).\n  How a notice is to be given\n  (6) A notice of assessment may be given in any manner prescribed by the regulations.\n  Non‑compliance not to affect validity of assessment\n  (7) The validity of any assessment is not affected by any non‑compliance with a provision of this Act.","sortOrder":13},{"sectionNumber":"11A","sectionType":"section","heading":"Periods within which assessments may be amended","content":"#### 11A Periods within which assessments may be amended\n\n  General provision\n  (1) The Commissioner may, subject to this section, at any time amend an assessment of surcharge on a termination payment or termination payments made to or for a taxpayer by making such alterations or additions as the Commissioner thinks necessary, even though surcharge has been paid in respect of the assessment. Such an amendment may be made on the Commissioner’s own initiative or at the request of the member.\n  Period for making further amendment\n  (2) If:\n    (a) an assessment has been amended in any particular in a way that effected a reduction in the amount of surcharge payable; and\n    (b) for the purposes of making the amendment, the Commissioner accepted a statement made by or on behalf of a taxpayer;\n  the Commissioner may, within 4 years from the date of service of the notice of the amended assessment, further amend the assessment in, or in respect of, that particular in a way that increases the amount of the surcharge payable to the extent that the Commissioner considers necessary.\n  Period where avoidance of surcharge\n  (3) Subject to this section, if there has been an avoidance of surcharge, the Commissioner may:\n    (a) if the Commissioner is of the opinion that the avoidance of surcharge is due to fraud or evasion—at any time; or\n    (b) in any other case—within 4 years from the date upon which the surcharge became due and payable under the assessment;\n  amend the assessment by making such alterations or additions as the Commissioner thinks necessary to correct the assessment.\n  Period where amendment reduces surcharge\n  (4) An amendment effecting a reduction in the amount of surcharge payable under an assessment is not to be made after the end of 4 years from the date upon which the surcharge became due and payable under the assessment.\n  Application or request for extension of period\n  (5) If:\n    (a) the Commissioner has begun an examination of the affairs of a taxpayer; and\n    (b) the examination was not completed within the period within which the Commissioner may amend an assessment to which the examination relates under subsection (3) or, if that period has been extended by any previous order or orders of the Federal Court of Australia made under subsection (6), or by any previous consent or consents of the taxpayer given under subsection (7), within that period as so extended;\n  the Commissioner may, before the end of the period referred to in paragraph (b) of this subsection, apply to the Federal Court for an order extending, or request the taxpayer to consent to the extension of, the period within which the Commissioner may amend the assessment under paragraph (3)(b).\n  Court may extend period\n  (6) If, on application made to the Federal Court of Australia in accordance with subsection (5), the Court is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the period referred to in paragraph (5)(b) because of any action taken by the taxpayer or any failure of the taxpayer to take action that it would have been reasonable for the taxpayer to take, the Court may make an order extending the period within which the Commissioner may amend the assessment under paragraph (3)(b) for such period as the Court considers appropriate.\n  Taxpayer may extend period\n  (7) If a request is made to the taxpayer in accordance with subsection (5), the taxpayer may, by writing, consent to the extension of the period within which the Commissioner may amend the assessment under paragraph (3)(b) for such period as is specified in the instrument of consent.\n  Meaning of take action\n  (8) In subsection (6), a reference to action taken by a taxpayer includes a reference to the institution by the taxpayer of a proceeding before a court or tribunal.\n  Period for further amendment reducing surcharge\n  (9) If an assessment has, under this section, been amended in any particular, the Commissioner may, within 4 years from the date upon which surcharge became due under the amended assessment, make, in or in respect of that particular, such further amendment of the assessment as, in the Commissioner’s opinion, is necessary to effect such reduction in the amount of surcharge payable under the assessment as is just.\n  Case when subsection (9) does not apply\n  (10) Subsection (9) does not authorise the further amendment of an earlier further amendment of an assessment made under subsection (2).\n  Assessment following application by taxpayer\n  (11) If:\n    (a) an application for an amendment of an assessment is made by a taxpayer within 4 years from the date upon which surcharge became due and payable under the assessment; and\n    (b) the taxpayer has given to the Commissioner within that period all information needed by the Commissioner for the purpose of deciding the application;\n  the Commissioner may amend the assessment when he or she decides the application even though that period has elapsed.\n  How application for amendment is to be made\n  (12) An application for amendment must be made in writing, on a data processing device or by way of electronic transmission and must be signed in accordance with the regulations.\n  Information to be contained in application\n  (13) An application for amendment must be given in the prescribed manner and contain the prescribed information.\n  Certain other powers of amendment not affected\n  (14) Nothing in this section prevents:\n    (a) the amendment of an assessment in order to give effect to the decision upon any appeal or review; or\n    (b) the amendment of an assessment by way of reduction in the amount of surcharge payable pursuant to an objection made against the assessment or pending any appeal or review.","sortOrder":14},{"sectionNumber":"12","sectionType":"section","heading":"Amendment of assessments","content":"#### 12 Amendment of assessments\n\n  Application\n  (1) This section applies if, after the making of an assessment of surcharge on a termination payment or termination payments made to or for a taxpayer in a financial year:\n    (a) the taxpayer’s adjusted taxable income for the financial year is increased or reduced and the increase or reduction affects the taxpayer’s liability to pay the surcharge; or\n    (b) the amount of the payment or the sum of the amounts of the payments is greater or less than the amount that was taken to be the amount of the payment or the sum for the purposes of the assessment.\n  Commissioner may amend assessment\n  (2) The Commissioner may amend the assessment to take account of any matter referred to in paragraph (1)(a) or (b).\n  Amendment increasing surcharge\n  (3) If, as a result of the amendment of the assessment, the amount of surcharge is increased, the amount of the increase is payable within one month after the day on which the assessment is amended.\n  Amendment reducing surcharge\n  (4) If, as a result of the amendment of the assessment, the amount of surcharge is reduced:\n    (a) the amount by which the surcharge is reduced is taken never to have been payable; and\n    (b) the Commissioner must:\n    (i) refund the amount of any surcharge overpaid; or\n    (ii) apply that amount against any liability of the taxpayer to the Commonwealth under this Act, and refund to the taxpayer any part of that amount not so applied.\n  This section subject to section 11A\n  (5) This section is subject to section 11A.","sortOrder":15},{"sectionNumber":"13","sectionType":"section","heading":"Payment of general interest charge if liability increased by amended assessment","content":"#### 13 Payment of general interest charge if liability increased by amended assessment\n\n  Liability to pay general interest charge\n  (1) If an amendment of an assessment increasing a taxpayer’s liability to pay surcharge for a financial year is made, the taxpayer is liable to pay the general interest charge on the amount of the increase for each day in the period that:\n    (a) started at the beginning of 15 June in the financial year; and\n    (b) finishes at the end of the day before the amended assessment is made.\n\n> Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n  Amendment of nil assessment\n  (2) If:\n    (a) the Commissioner has calculated that no surcharge is payable by a taxpayer for a financial year; and\n    (b) the Commissioner afterwards makes an assessment of surcharge payable by the taxpayer for the financial year;\n  that assessment is taken to be an amended assessment.","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":"Commissioner may use tax file numbers for the purposes of this Act","content":"#### 14 Commissioner may use tax file numbers for the purposes of this Act\n\n  The Commissioner may use for the purposes of this Act a tax file number that has been provided for any other purpose.","sortOrder":17},{"sectionNumber":"15","sectionType":"section","heading":"Objections against assessments","content":"#### 15 Objections against assessments\n\n  If:\n    (a) an assessment of surcharge payable by a taxpayer is made; and\n    (b) the taxpayer is dissatisfied with the assessment;\n  the taxpayer may object against it in the way set out in Part IVC of the Taxation Administration Act 1953.","sortOrder":18},{"sectionNumber":"Part 4","sectionType":"part","heading":"Recovery of unpaid surcharge, general interest charge or late payment penalty","content":"## Part 4—Recovery of unpaid surcharge, general interest charge or late payment penalty","sortOrder":19},{"sectionNumber":"16","sectionType":"section","heading":"Penalty for non‑payment of surcharge","content":"#### 16 Penalty for non‑payment of surcharge\n\n  Liability to pay general interest charge\n  (1) If an amount of surcharge payable by a taxpayer remains unpaid after the time by which it is due to be paid, the taxpayer is liable to pay the general interest charge on the unpaid amount.\n\n> Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n  General interest charge period\n  (2) The taxpayer is liable to pay the general interest charge for each day in the period that:\n    (a) started at the beginning of the day by which the surcharge was due to be paid; and\n    (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n    (i) the surcharge;\n    (ii) general interest charge on any of the surcharge.\n  Commissioner’s right to sue not affected\n  (3B) This section does not prevent the Commissioner from suing for the recovery of any unpaid surcharge, general interest charge or late payment penalty at any time after it becomes due and payable.","sortOrder":20},{"sectionNumber":"16A","sectionType":"section","heading":"Additional liability to pay general interest charge","content":"#### 16A Additional liability to pay general interest charge\n\n  Commissioner may give notice\n  (1) If general interest charge (the primary general interest charge) is payable by a person under section 13, the Commissioner may give a notice to the person specifying a date after which general interest charge will apply under this section. The specified date must be at least 30 days after the notice is given.\n  Liability to general interest charge\n  (2) If any of the primary general interest charge remains unpaid after the day specified in the notice, the person is liable to pay general interest charge on the unpaid amount.\n\n> Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n  General interest charge period\n  (3) The person is liable to pay the general interest charge for each day in the period that:\n    (a) started at the beginning of the day specified in the notice; and\n    (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n    (i) primary general interest charge;\n    (ii) general interest charge on primary general interest charge.","sortOrder":21},{"sectionNumber":"Part 5","sectionType":"part","heading":"Administration","content":"## Part 5—Administration","sortOrder":22},{"sectionNumber":"21","sectionType":"section","heading":"General administration of Act","content":"#### 21 General administration of Act\n\n  The Commissioner has the general administration of this Act.\n\n> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.","sortOrder":23},{"sectionNumber":"22","sectionType":"section","heading":"Annual report","content":"#### 22 Annual report\n\n  After the end of each financial year, the Commissioner must give the Treasurer a report on the working of this Act during the year for presentation to the Parliament.","sortOrder":24},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"## Part 6—Miscellaneous","sortOrder":25},{"sectionNumber":"24","sectionType":"section","heading":"Authorised officers","content":"#### 24 Authorised officers\n\n  The Commissioner may, by writing, authorise a person who is engaged under the Public Service Act 1999 to be an authorised officer for the purposes of a provision or provisions of this Part.","sortOrder":26},{"sectionNumber":"25","sectionType":"section","heading":"Evidence","content":"#### 25 Evidence\n\n  Assessment to be evidence of correctness of calculations\n  (1) The mere production of:\n    (a) an assessment; or\n    (b) a document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of an assessment;\n  is conclusive evidence of the due making of the assessment and, except in proceedings under Part IVC of the Taxation Administration Act 1953 on a review or appeal relating to the assessment, that the amounts and all of the particulars of the assessment are correct.\n  Copies of documents\n  (2) A document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of a document issued or given by the Commissioner, a Second Commissioner or a Deputy Commissioner is prima facie evidence that the second‑mentioned document was so issued or given.\n  Copy of, or extract from, assessment\n  (3) A document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of, or an extract from, an assessment is evidence of the matter set out in the document to the same extent as the original assessment would be if it were produced.\n  Certificates\n  (4) A certificate signed by the Commissioner, a Second Commissioner or a Deputy Commissioner certifying that an amount stated in the certificate was, on the day of the certificate, payable by a person as an amount of surcharge, general interest charge under section 13 or late payment penalty, is prima facie evidence of the matters stated in the certificate.","sortOrder":27},{"sectionNumber":"26","sectionType":"section","heading":"Access to premises etc.","content":"#### 26 Access to premises etc.\n\n  Powers of authorised officer\n  (1) For the purposes of this Act, an authorised officer:\n    (a) may, at any reasonable time, enter and remain on any land or premises; and\n    (b) is entitled to full and free access at any reasonable time to all documents; and\n    (c) may inspect, examine, make copies of, or take extracts from, any documents.\n  Proof of authority to be produced\n  (2) An authorised officer is not entitled to enter or remain on any land or premises if, on being requested by the occupier of the land or premises for proof of authority, the officer does not produce a written authority signed by the Commissioner stating that the officer is authorised to exercise powers under this section.\n  Occupier to help authorised officer\n  (3) The occupier of land or premises entered or proposed to be entered by an authorised officer under subsection (1) must, for the purpose of enabling the effective exercise of the officer’s powers under this section, provide the officer with all reasonable facilities and assistance that the occupier is reasonably capable of providing.\n\nPenalty: 30 penalty units.\n\n> Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.","sortOrder":28},{"sectionNumber":"27","sectionType":"section","heading":"Obtaining information and evidence","content":"#### 27 Obtaining information and evidence\n\n  Power of Commissioner to obtain information or documents\n  (1) The Commissioner may, for the purposes of this Act, by written notice, require a person:\n    (a) to give to the Commissioner, within a reasonable period, and in a reasonable manner, stated in the notice, any information that the Commissioner requires; and\n    (b) to attend before the Commissioner, or an authorised officer, at a reasonable time and place stated in the notice, and answer questions; and\n    (c) to produce to the Commissioner, at a reasonable time and place stated in the notice, any documents in the custody or under the control of the person.\n  Power to require information on oath or affirmation\n  (2) The Commissioner may require the information or answers to be verified or given on oath or affirmation, and either orally or in writing, and for that purpose the Commissioner or an authorised officer may administer an oath or affirmation.\n  Nature of oath or affirmation\n  (3) The oath to be taken or affirmation to be made by a person is an oath or affirmation that the information or answers the person will give will be true.\n  Expenses of attendance\n  (4) The regulations are to prescribe scales of expenses to be allowed to persons required to attend under this section.","sortOrder":29},{"sectionNumber":"28","sectionType":"section","heading":"Records to be kept and retained by employer","content":"#### 28 Records to be kept and retained by employer\n\n  Employer to keep records\n  (1) An employer must keep records that record and explain all termination payments made by the employer.\n  How records to be kept\n  (2) The records must be kept in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language.\n  Period for retention of records\n  (3) An employer who has possession of any records kept or obtained under or for the purposes of this Act must retain them until the end of 5 years after they were prepared or obtained, or the making of the payments to which those records relate, whichever is the later.\n  When records need not be kept\n  (4) This section does not require an employer to retain records if:\n    (a) the Commissioner has notified the employer that the retention of the records is not required; or\n    (b) the employer is a company that has gone into liquidation and been finally dissolved.\n  Offences\n  (5) An employer who contravenes this section is guilty of an offence punishable on conviction by a fine of not more than 60 penalty units.\n\n> Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.\n\n> Note 2: The amount of a penalty unit is stated in section 4AA of the Crimes Act 1914. If a body corporate is convicted of an offence, subsection 4B(3) of that Act allows a court to impose a fine that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.\n\n> Note 3: In a prosecution for an offence against subsection (5), the defendant bears an evidential burden in relation to the matter in subsection (4) (see subsection 13.3(3) of the Criminal Code).","sortOrder":30},{"sectionNumber":"29","sectionType":"section","heading":"Application of the Criminal Code","content":"#### 29 Application of the Criminal Code\n\n  Chapter 2 of the Criminal Code applies to all offences against this Act.","sortOrder":31},{"sectionNumber":"30","sectionType":"section","heading":"Regulations","content":"#### 30 Regulations\n\n  The Governor‑General may make regulations prescribing matters:\n    (a) required or permitted by this Act to be prescribed; or\n    (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":32},{"sectionNumber":"Part 7","sectionType":"part","heading":"Interpretation","content":"## Part 7—Interpretation","sortOrder":33},{"sectionNumber":"31","sectionType":"section","heading":"Definitions","content":"#### 31 Definitions\n\n  In this Act, unless the contrary intention applies:\n\n> adjusted taxable income of a taxpayer has the same meaning as adjusted taxable income of a member has in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.\n\n> assessment means an assessment made under subsection 11(1).\n\n> authorised officer means a person engaged under the Public Service Act 1999 who has been authorised in writing by the Commissioner for the purposes of the provision in which the expression occurs.\n\n> Commissioner means the Commissioner of Taxation.\n\n> Deputy Commissioner means a Deputy Commissioner of Taxation.\n\n> general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\n> Income Tax Assessment Act means the Income Tax Assessment Act 1936.\n\n> late payment penalty means general interest charge payable under section 16 or 16A.\n\n> post‑June 1994 invalidity component of an eligible termination payment has the meaning given by subsection 27A(1) of the Income Tax Assessment Act.\n\n> retained amount has the meaning given by section 27AC of the Income Tax Assessment Act.\n\n> Second Commissioner means a Second Commissioner of Taxation.\n\n> surcharge threshold has the meaning given by section 10.\n\n> taxpayer means an individual who is a taxpayer for the purposes of the Income Tax Assessment Act but does not include an individual acting as a trustee.\n\n> termination payment has the meaning given by subsection 7(2).\n\n> termination payments surcharge or surcharge means the tax imposed by the Termination Payments Tax Imposition Act 1997.\n\n> the 1996‑97 financial year means the financial year that started on 1 July 1996.","sortOrder":34}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The Act’s operational scope matches its stated object (s.5): it is limited to assessing and collecting a surcharge on certain termination payments made in the period specified (after 7:30 pm on 20 August 1996 and before 1 July 2005) to high‑income individual taxpayers (s.7(2), s.8(2), s.5). The Act also narrows application by excluding specific payment components and certain Territory residents (s.7(2), s.8(3), s.9(4)). Mechanically, it establishes assessment and collection processes, Commissioner powers, amendment windows, record‑keeping duties on employers, and enforcement measures (s.11, s.11A, s.12, s.21, s.25–s.28). There is no provision in the text that expands or departs from that original, stated scope."},"complexity_factors":["Cross‑references to the Income Tax Assessment Act for key definitions and for the Commissioner’s determinations (s.7(2), s.9(4))","Multiple formulas and indexed threshold calculations across sections (s.9, s.10) including rounding rules and indexation steps","Time‑limited application window for covered payments (s.7(2), s.6) requiring historical application and record tracing","Broad Commissioner discretion and multiple amendment regimes, including special rules for fraud/evasion and court extensions (s.11A, s.12)","Administrative enforcement powers (entry, inspection, summons, sworn evidence) combined with evidentiary presumptions (s.25, s.26, s.27)","Interaction with general interest charge and late‑payment mechanisms that apply different GIC timing rules (s.13, s.16, s.16A)","Record‑keeping obligations on employers with criminal penalties and specified language/retention requirements (s.28)","Appeal and objection routes are outsourced to the Taxation Administration Act, creating layered procedural complexity (s.15)"],"plain_english_summary":"What this law does (mechanically)\n\n- The Act creates a tax surcharge on certain employment termination payments (commonly called \"golden handshakes\") paid to high‑income individuals for payments made after 7:30 pm (ACT time) on 20 August 1996 and before 1 July 2005 (s.7(2), s.6).\n- The Commissioner of Taxation calculates each affected individual’s adjusted taxable income for the relevant financial year, decides whether that income exceeds the annual surcharge threshold (s.11(1)(a), s.8(2), s.10), and if so assesses the surcharge and notifies the taxpayer (s.11(1)(b)–(c), s.11(3)–(6)). The taxpayer is liable to pay the surcharge (s.8(4)).\n- Only part of some termination payments may be subject to the surcharge; the Act sets formulas for determining the taxable portion (s.9(2)–(3)). The law also excludes certain components (for example, post‑June‑1994 invalidity or CGT‑exempt parts) and excludes amounts found to exceed a taxpayer’s RBL where the Commissioner has made that determination under the Income Tax Assessment Act (s.7(2), s.9(4), s.8(1A)).\n- The surcharge applies only if the taxpayer’s adjusted taxable income for the year is greater than the surcharge threshold (s.8(2)). The threshold is $70,000 for 1996–97 and is indexed for later years using an earnings index (s.10).\n- Assessments can be amended by the Commissioner in a range of circumstances, including to correct increases or decreases in adjusted taxable income or the amount of the termination payment (s.11A, s.12). Interest and late‑payment mechanisms apply where liability is increased or not paid on time (s.13, s.16, s.16A).\n\nWho pays, who decides, and what they must do\n\n- Who pays: the individual taxpayer who receives (or for whose benefit is made) the termination payment is liable for the surcharge (s.8(4)).\n- Who decides/calculates: the Commissioner of Taxation assesses adjusted taxable income, applies the threshold, calculates the rate and amount of surcharge, and issues the assessment (s.11(1), s.21). The Commissioner can use tax file numbers provided for other purposes to do this (s.14).\n- What taxpayers must do: pay the assessed surcharge within one month of the assessment (s.11(2)), and they may lodge objections under the Taxation Administration Act procedures if dissatisfied (s.15). Employers must keep records of termination payments in English or convertible into English, retain them for at least five years, and produce them on demand (s.28(1)–(3)); failure to retain attracts an offence penalty (s.28(5)).\n\nAdministrative powers, compliance burden and discretion\n\n- Information and access: an authorised officer (a public service employee authorised in writing) may enter premises at reasonable times, inspect and copy documents, and the Commissioner may require information, attendance and sworn answers (s.24, s.26, s.27). There are prescribed expense scales for required attendance (s.27(4)).\n- Evidence and enforcement: production of assessments or Commissioner‑signed copies is prima facie evidence of correctness; certificates from the Commissioner are prima facie evidence of amounts payable (s.25). The Commissioner may sue for unpaid amounts (s.16(3B)), and general interest charge (GIC) applies to unpaid surcharge and to increases from amended assessments (s.13, s.16, s.16A).\n- Discretion and amendment powers: the Commissioner has broad powers to amend assessments, including without time limit in cases involving fraud or evasion, and within specified periods otherwise (s.11A(1)–(3)). Amendments reducing liability are time‑limited (s.11A(4), s.11A(9), s.12(5)). These powers affect finality and create administrative discretion over assessments.\n\nOfficial purpose claim and testing against practical trade‑offs\n\n- The Act’s stated object is to provide for assessment and collection of a surcharge on certain ‘‘golden handshake’’ payments to high‑income taxpayers (s.5). Mechanically, it does this by defining eligible payments and taxpayers, setting a threshold with indexation, giving the Commissioner assessment and enforcement powers, and providing records and evidence rules (s.5; s.7; s.8; s.10; s.11; s.21; s.25–s.28).\n- Costs and incentives: the law imposes direct payment obligations on affected individuals (s.8(4)) and record‑keeping and production obligations on employers, with criminal penalties for non‑retention (s.28(5)). Administrative costs fall on the Commissioner to calculate and publish thresholds (s.10(7)) and to administer assessments and collections (s.21). The limited time window for covered payments (s.7(2)) narrows who is affected but creates additional complexity in identifying qualifying payments.\n- Trade‑offs and implementation risks: the Act relies on cross‑references to the Income Tax Assessment Act for definitions and determinations (s.7(2), s.9(4)), which requires integrated application of two statutes and may complicate compliance and administration. Commissioner discretion in making and amending assessments (s.11A, s.12) and broad information‑gathering and entry powers (s.26, s.27) concentrate practical decision‑making in the tax administration, which reduces finality for taxpayers but enables correction of under‑assessments.\n- Effects on private choice and business: the surcharge increases the after‑tax cost to individuals of receiving affected termination payments and requires employers to keep and make available detailed records (s.28). The Act does not itself alter employers’ contractual freedom to make payments, but it changes the tax consequences for recipients.\n\nKey limits and exclusions\n\n- The surcharge does not apply to residents of certain external Territories for the relevant year (s.8(3)). It excludes some components of payments (post‑June 1994 invalidity and CGT‑exempt components) and excludes parts determined as exceeding RBLs in specified cases (s.7(2), s.9(4), s.8(1A)).\n- The Crown is bound by the Act but cannot be prosecuted for an offence under it (s.3).\n\nUseful quick references: who‑pays (s.8(4)); Commissioner powers (s.11, s.11A, s.12, s.21); employer record‑keeping (s.28); thresholds/indexation (s.10); enforcement and interest (s.13, s.16, s.16A); access and information powers (s.26, s.27)."},"summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"Establishes the assessment and collection framework for the termination payments surcharge, a tax on golden handshake payments made to high-income earners between 20 August 1996 and 30 June 2005. It applies to individual taxpayers and employers, and is administered by the Commissioner of Taxation."},"complexity_factors":["Interacts with the Income Tax Assessment Act 1936 for definitions of termination payments and adjusted taxable income","Contains detailed formulas for surcharge calculation and indexation of thresholds","Limited to a specific historical period (20 August 1996 to 30 June 2005)","Amended assessment provisions include nuanced time limits and exceptions for fraud or court orders"],"plain_english_summary":"This Act sets up the rules for assessing and collecting a special tax, called the termination payments surcharge, on certain lump-sum employment termination payments (often called golden handshakes). Only high-income taxpayers who received a qualifying termination payment between 20 August 1996 and 30 June 2005 can be affected.\n\nThe surcharge is payable only if a taxpayer's adjusted taxable income for the financial year in which the payment was made exceeds a threshold (starting at $70,000 for 1996-97 and indexed afterwards). The Act limits how much of a termination payment is subject to the surcharge, partly based on how much of the employment occurred after 20 August 1996. Payments to residents of external Territories are exempt.\n\nThe Commissioner of Taxation must make an assessment for each relevant financial year, calculating adjusted taxable income, the surcharge rate, and the amount payable. The taxpayer must pay within one month of the assessment. Assessments can be amended later if income or payment amounts are found to be incorrect, subject to time limits and special rules for fraud or evasion.\n\nIf surcharge is not paid on time, a general interest charge applies. The Act also provides for objections against assessments using the same process as for income tax objections. Employers must keep records of termination payments for five years and give the Commissioner access to premises and documents. Officers of the ATO can require information or attendance for examination.\n\nIn practice, this Act is now largely historical because no new liability can arise for payments made after 30 June 2005. However, it may still be relevant if there are unresolved assessments, amended assessments, interest charges, or disputes about payments made during the 1996 to 2005 window."}},"importantCases":[],"_links":{"self":"/api/acts/termination-payments-tax-assessment-and-collection-act-1997","history":"/api/acts/termination-payments-tax-assessment-and-collection-act-1997/history","analysis":"/api/acts/termination-payments-tax-assessment-and-collection-act-1997/analysis","conflicts":"/api/acts/termination-payments-tax-assessment-and-collection-act-1997/conflicts","importantCases":"/api/acts/termination-payments-tax-assessment-and-collection-act-1997/important-cases","documents":"/api/acts/termination-payments-tax-assessment-and-collection-act-1997/documents"}}