Commonwealth Numbered Regulations

1984 No. 172 INCOME TAX REGULATIONS (AMENDMENT) - REG 5

5. After Subdivision A of Division 2 of Part VI of the Income Tax  Regulations
the following Subdivision is inserted:

"Subdivision AAA-Deductions from Eligible Termination Payments Interpretation

"54DAO. (1) Expressions used in this Subdivision that are used in Division 2
of Part VI of the Act have in this Subdivision, unless the contrary intention
appears, the same respective meanings as in that Division.

"(2) In this Subdivision-
'concessional component' has the same meaning as in sub-section 27A (1) of the
Act;
'post 30 June 1983 component', in relation to an eligible termination payment,
means so much (if any) of that payment as is equal to the relevant amount
referred to in sub-section 27B (1) of the Act in relation to that eligible
termination payment;
'pre 1 July 1983 component', in relation to an eligible termination payment,
means so much (if any) of that payment as is equal to the amount represented
by the component X in the formula in paragraph 27C (1) (c) of the Act in
relation to that eligible termination payment;
'undeducted contributions' has the same meaning as in sub-section 27A (1) of
the Act.

Rate of deductions

"54DAP. (1) Where any salary or wages that an employee receives or is entitled
to receive in respect of a week consists or consist of an eligible termination
payment, the prescribed rate of deductions to be made for the purposes of
section 221C of the Act from that payment is the amount (being a multiple of 5
cents) that is, or is nearest to-

   (a)  in the case of an eligible termination payment that is made on or
        after the fifty-fifth anniversary of the employee's birth-the sum of-

        (i)    the amount ascertained by multiplying by 16 cents the number of
               whole dollars in so much of the net relevant amount as does not
               exceed $50,000; and

        (ii)   the amount (if any) ascertained by multiplying by 31 cents the
               number of whole dollars in so much (if any) of the net relevant
               amount as exceeds $50,000; or

   (b)  in any other case-the amount ascertained by multiplying by 31 cents
        the number of whole dollars in the net relevant amount.



"(2) In this regulation, 'net relevant amount', in relation to an eligible
termination payment, means the amount (if any) remaining after deducting from
the post 30 June 1983 component, as shown in the statement referred to in
paragraph 54DAQ (1) (a) in relation to that eligible termination payment, the
amount (if any) specified in accordance with sub-paragraph 54DAQ (2) (b) (iii)
and paid in accordance with the declaration referred to in paragraph 54DAQ (3)
(a) in relation to the eligible termination payment. Statement of termination
payment

"54DAQ. (1) Before an eligible termination payment is made in relation to an
employee-

   (a)  the employer shall-

        (i)    on a form approved by the Commissioner for the purpose,
               prepare, in triplicate, to the best of the employer's
               knowledge, a statement in relation to the eligible termination
               payment indicating, in particular-

                (A)  the concessional component (if any);

                (B)  the pre 1 July 1983 component (if any);

                (C)  the post 30 June 1983 component (if any); and

                (D)  where the eligible termination payment is of a kind
                     referred to in paragraph (b) or (c) of the definition of
                     'eligible termination payment' in sub-section 27A (1) of
                     the Act, the undeducted contributions (if any); and

        (ii)   cause the original and the copies of the statement to be given
               to the employee; and

   (b)  the employee shall-

        (i)    on the form referred to in sub-paragraph (a) (i), make, in
               triplicate, a roll-over nomination in accordance with
               sub-regulation (2); and

        (ii)   cause the original and the copies of the statement and
               roll-over nomination to be returned to the employer.



"(2) A roll-over nomination referred to in paragraph (1) (b) shall-

   (a)  authorize the making by the employer of payments of the kinds referred
        to in paragraphs 27A (12) (a), (b) and (c) of the Act to such funds or
        persons, in such amounts and in respect of such components of the
        eligible termination payment as are specified in accordance with
        paragraph (b);

   (b)  specify, in relation to each fund or person to whom amounts are, in
        accordance with paragraph (a), authorized to be paid, the amount (if
        any) so authorized to be paid in respect of-

        (i)    the concessional component;

        (ii)   the pre 1 July 1983 component;

        (iii)  the post 30 June 1983 component; and

        (iv)   where the eligible termination payment is of a kind referred to
               in sub-sub-paragraph (1) (a) (i) (D), the undeducted
               contributions; and

   (c)  be signed by the employee and dated on the day on which it is made.



"(3) Not later than 7 days after the making of an eligible termination
payment, the employer shall-

   (a)  on the form referred to in sub-paragraph (1) (a) (i), make a
        declaration in accordance with sub-regulation (4); and

   (b)  cause the original and a copy of that form to be delivered to the
        employee.



"(4) A declaration referred to in paragraph (3) (a) shall-

   (a)  verify, to the best of the employer's knowledge, the statement
        referred to in paragraph (1) (a);

   (b)  state whether the amounts authorized in terms of the roll-over
        nomination referred to in paragraph (1) (b) to be paid to the funds
        and persons there referred to have been so paid; and

   (c)  be signed by or on behalf of the employer and be dated on the day on
        which it is made.



"(5) Where, for the purposes of the application of the Act in relation to the
eligible termination payment to which the statement referred to in paragraph
(1) (a) relates, sub-section 27A (10) of the Act requires the deduction of a
number of days from the beginning of the period referred to in that
sub-section as the original eligible service period, that statement shall be
prepared as if there were deducted from the beginning of that period-

   (a)  the number of whole days included in that period that is ascertained
        in accordance with the formula-
A (C-D)
---------- ,
C
where-
A and C have the same respective values as in the formula in that sub-section;
and
D is the number of dollars in the aggregate of the amounts of roll-over
payments that are known to the employer to have been declared, under paragraph
33A (4) (c), to have been made in relation to another eligible termination
payment, being an eligible termination payment to which the first-mentioned
eligible termination payment is attributable, and to have been specified under
sub-paragraph 33A (3) (b) (ii) in relation to those roll-over payments; or

   (b)  such smaller number of whole days as is specified by the Commissioner
        in a notice given to the employee for the purposes of this paragraph
        and brought to the attention of the employer.".