Commonwealth Consolidated Acts

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Directed termination payments

             (1)  A transitional termination payment (or part of such a payment) is a directed termination payment if:

                     (a)  the individual chooses, in accordance with this section, to direct the payment (or part of the payment) to be made; and

                     (b)  the payment (or part of the payment) is made on the individual's behalf as directed.

Choice to make payment

             (2)  An individual may choose, within 30 days after a pre-payment statement about a transitional termination payment is given to the individual under section 82-10E, to direct the payer to use all or part of the payment to make a payment on behalf of the individual:

                     (a)  to a complying superannuation plan; or

                     (b)  to purchase a superannuation annuity.

             (3)  To make the choice, the individual must:

                     (a)  make it in the approved form; and

                     (b)  give the completed form to the payer.

             (4)  The payer must, immediately after receiving a completed form under subsection (3):

                     (a)  give the entity (or entities) to which payment is directed written notice of the amount that is to be paid, and of the tax free component of the amount; and

                     (b)  comply with the direction (or directions) in the form.

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