Skip to main content
shopping_cart

Your shopping cart is empty

21 Nov 07 Extension of ETP 12 month rule

Employment Termination Payments (12 month rule) Determination 2007 was made on 12 November 2007 and registered on the Federal Register of Legislative Instruments on 16 November 2007 as Legislative Instrument F2007L04372. The Determination extends the definition of employment termination payment (ETP) to include certain payments that are received more than 12 months after the termination of a person’s employment.

Specifically, the Determination makes a payment received more than 12 months after termination of a person’s employment an ETP, if the delay in the payment was due to the commencement of legal action concerning either or both:

  • the person’s entitlement to the payment;
  • the amount of the person’s entitlement.

The legal action must have commenced within 12 months of the termination of a person’s employment. Legal action is intended to cover any Court, Tribunal and other proceedings of a judicial or quasi-judicial nature which may result in the payment of an amount in consequence of the termination of a person’s employment.

The Determination also makes a payment received more than 12 months after termination of a person’s employment an ETP if it was made by a liquidator, receiver or trustee in bankruptcy of an entity. The entity in liquidation, bankruptcy or receivership must have otherwise been liable to make the payment. The liquidator, receiver or trustee must have been appointed no later than 12 months after the termination of employment. The date of appointment is that day that the liquidator, receiver or trustee in bankruptcy of an entity takes possession of assets.

The Determination commences on the day after it is registered. It will apply to a payment received after 30 June 2007.

For a copy of the Determination, go here  

For a copy of the Explanatory Statement, click on ES/Supp Material


Media Release Search
Keywords
Eg. TD 2005/D52 ALL words EXACT phrase WITHOUT words Date range
From To