Initial upper cap amount is $1,000,000
(1) Your upper cap amount in relation to a transitional termination payment you receive at a time in an income year is $1,000,000, reduced in accordance with this section.
Reduction of upper cap amount for each payment
(2) Reduce your upper cap amount in relation to the payment (but not below zero):
(a) by the total of all the amounts (if any) included in your assessable income under subsection 82-10C(3) and subsection 82-10A(3) that you received at an earlier time (whether in the income year or in an earlier income year); and
(b) by the total amount of the taxable components of all directed termination payments (if any) received on your behalf at an earlier time (whether in the income year or in an earlier income year).
Directed termination payments--time of receipt when received by entity to which they are directed
(3) For this section, a directed termination payment is taken to be received on your behalf at the time the entity to which it is directed receives the payment.
Table of sections
82-10E Transitional termination payments--pre-payment statements