A directed termination payment made on your behalf, that you are taken to receive under section 80-20 of the Income Tax Assessment Act 1997 , is not assessable income and is not exempt income.
Note 1: Directed termination payments are paid into a complying superannuation plan (or to purchase a superannuation annuity) on your behalf: see section 82-10F.
Note 2: The taxable component of the payment is included in the assessable income of the entity receiving the payment: see section 295-190 of the Income Tax Assessment Act 1997 .
Note 3: In addition, income tax may be payable on a benefit you later receive from the plan to which the directed termination payment is made: see Divisions 301-307 of the Income Tax Assessment Act 1997 .
Table of sections
82-10H Transitional termination payments may reduce ETP cap amount for payments under section 82-10 after 1 July 2012