5Rate of termination payments surcharge

#### 5 Rate of termination payments surcharge (1AA) In this section: > higher income amount means: (a) for the 2003‑2004 financial year—$114,981; and (b) for the 2004‑2005 financial year—that amount as indexed under section 6. > lower income amount means: (a) for the 2003‑2004 financial year—$94,691; and (b) for the 2004‑2005 financial year—that amount as indexed under section 6. > maximum surcharge percentage means: (a) for the 2003‑2004 financial year—14.5%; and (b) for the 2004‑2005 financial year—12.5%. (1) If the taxpayer’s adjusted taxable income for a financial year (relevant adjusted taxable income) is not less than the lower income amount but is less than the higher income amount, the rate of the termination payments surcharge payable on a termination payment made to or for the taxpayer in that year is the percentage (calculated to 5 decimal places) of the amount of the payment worked out using the formula:  where: > A is:  (1A) If the percentage calculated under subsection (1) for a financial year would, if it were worked out to 6 decimal places, end with a number greater than 4, the number so calculated is increased by 0.00001. (2) If the taxpayer’s adjusted taxable income for a financial year is equal to, or greater than, the higher income amount, the rate of the termination payments surcharge payable in respect of a termination payment made to or for the taxpayer in that year is the maximum surcharge percentage of the amount of the payment.