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Income Tax Employment Termination Payments (12 month rule) Determination 2018
5. Determination5. Determination
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5. Determination
This determination is made in accordance with subsection 82-130(7) of the Income Tax Assessment Act 1997 (ITAA 1997).
Paragraph 82-130(1)(b) of the ITAA 1997 does not apply to a late termination payment if the payment is received more than 12 months after the termination of a person’s employment because:
(a) legal action was commenced within 12 months of the termination of employment, of which the subject is either or both:
i) the person’s entitlement to the payment;
ii) the amount of the person’s entitlement; or
(b) the payment was made by a liquidator, receiver or trustee in bankruptcy of an entity that is otherwise liable to make the payment, where that liquidator, receiver or trustee is appointed no later than 12 months after the termination of employment.