7Application

#### 7 Application Act provides for surcharge on termination payments (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. Definition of termination payment (2) A termination payment is a payment that: (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 (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; 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.