25Interpretation

25 Interpretation

Section 159S of the Principal Act is amended: (a) by omitting paragraph (a) of the definition of eligible assessable income and substituting the following paragraph: (a) section 26AC, in respect of: (i) unused annual leave, or unused annual leave and a bonus, loading or other additional payment relating to that leave, that accrued to the taxpayer in respect of service before 18 August 1993; or (ii) bona fide redundancy amounts, early retirement scheme amounts and invalidity amounts, paid on or after 18 August 1993. (b) by omitting paragraph (b) of the definition of eligible assessable income and substituting the following paragraph: (b) subsections 26AD(2), (3) and (4): (i) in respect of a bona fide redundancy amount, an early retirement scheme amount or an invalidity amount; or (ii) if subparagraph (i) does not apply to the amount and the eligible service period mentioned in subsection 26AD(2), (3) or (4) began on or before 17 August 1993—to the extent that the amount exceeds the post 1993 Budget component (if any) of the amount. (c) by inserting the following definitions:

annual leave has the same meaning as in section 26AC.

bona fide redundancy amount means a payment made (whether voluntarily, by agreement or by compulsion of law) to a person in a lump sum because of the dismissal of the person from any employment, where:

(a) the dismissal was because of the bona fide redundancy of the person; and
(b) the dismissal took place before the last retirement date (within the meaning of section 27A) in relation to the employment; and
(c) there was, at the time of the dismissal, no agreement in force between the person and the employer, or between the employer and another person, to employ the person after that time.

early retirement scheme amount means a payment made (whether voluntarily, by agreement or by compulsion of law) to a person in a lump sum because of the person’s retirement from any employment or because of the termination of any employment of the person, where:

(a) the retirement or termination was in accordance with an approved early retirement scheme (within the meaning of section 27E); and
(b) the retirement or termination took place before the last retirement date (within the meaning of section 27A) in relation to the employment; and
(c) there was, at the time of the retirement or termination, no agreement in force between the person and the employer, or between the employer and another person, to employ the person after that time.

employment includes holding an office.

invalidity amount means a payment made (whether voluntarily, by agreement or by compulsion of law) to a person in a lump sum because of the person’s retirement from any employment or because of the termination of any employment of the person, where: