Income Tax (Transitional Provisions) Act 1997

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

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

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

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:

to a complying superannuation plan; or

to purchase a superannuation annuity.

To make the choice, the individual must:

make it in the approved form; and

give the completed form to the payer.

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

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

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