Income tax: does employment, for the purposes of subsection 27A(1), include time spent as a partner for the purpose of calculation of the eligible service period in relation to an eligible termination payment made in consequence of the termination of a person's employment?

Taxation Determination TD 93/192 states that eligible service period in the context of an eligible termination payment under subsection 27A(1) of the Income Tax Assessment Act 1936 (ITAA 1936) means a period of employment.

Subsection 27A(1) of the ITAA 1936 was repealed by the Superannuation Legislation Amendment (Simplification) Act 2007. Subsection 27A(1) does not apply to the 2007-2008 income year and later income years.

However, the view set out in this taxation determination remains relevant for eligible termination payments paid to taxpayers up to 30 June 2007.