Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if you receive a * genuine redundancy payment or an * early retirement scheme payment.
Note: A payment cannot be both a genuine redundancy payment and an early retirement scheme payment, because of the nature of each of these types of payment: see sections 83 - 175 and 83 - 180.
(2) So much of the relevant payment as does not exceed the amount worked out under subsection (3) is not assessable income and is not * exempt income.
(3) Work out the amount using the formula:
where:
"base amount" means:
(a) for the income year 2006 - 2007--$6,783; and
(b) for a later income year--the amount mentioned in paragraph (a) indexed annually.
Note: Subdivision 960 - M shows you how to index the base amount.
"service amount" means:
(a) for the income year 2006 - 2007--$3,392; and
(b) for a later income year--the amount mentioned in paragraph (a) indexed annually.
Note: Subdivision 960 - M shows you how to index the service amount.
"years of service" means the number of whole years in the period, or sum of periods, of employment to which the payment relates.
Note: The remaining part of a genuine redundancy payment or an early retirement scheme payment (apart from the amount mentioned in subsection (3)) is an employment termination payment if section 82 - 130 applies to that part.