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INCOME TAX ASSESSMENT ACT 1997 - SECT 83.240

Termination payments tax free--Australian resident period

             (1)  A payment received by you is not assessable income and is not * exempt income if:

                     (a)  it was received in consequence of:

                              (i)  the termination of your employment in a foreign country; or

                             (ii)  the termination of your engagement on qualifying service on an approved project (within the meaning of section 23AF of the Income Tax Assessment Act 1936 ), in relation to a foreign country; and

                     (b)  it relates only to the period of that employment or engagement; and

                     (c)  it is not a * superannuation benefit; and

                     (d)  it is not a payment of a pension or an * annuity (whether or not the payment is a superannuation benefit); and

                     (e)  you were an Australian resident during the period of the employment or engagement; and

                      (f)  the payment is not exempt from income tax under the law of the foreign country; and

                     (g)  for a period of employment--your foreign earnings from the employment are exempt from income tax under section 23AG of the Income Tax Assessment Act 1936 ; and

                     (h)  for a period of engagement--your * eligible foreign remuneration from the service is exempt from income tax under section 23AF of that Act.

             (2)  For the purposes of subparagraph (1)(a)(ii), treat the termination of engagement on qualifying service on an approved project as including:

                     (a)  retirement from the engagement; and

                     (b)  cessation of the engagement because of the person's death.

Note:          The termination of a person's employment is treated in the same way: see section 80-10.

Guide to Subdivision 83-E



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