Income tax: in what circumstances will an eligible termination payment (ETP) be accepted as having been 'immediately' paid to a roll-over fund for the purposes of subsection 27A(12) of the Income Tax Assessment Act 1936?

Taxation Determination TD 96/36, which issued on 4 September 1996, deals with the circumstances in which an eligible termination payment would be accepted as having been immediately paid to a fund for the purposes of subsection 27A(12) of the Income Tax Assessment Act 1936 (ITAA 1936). An eligible termination payment paid to an individual would only qualify for roll-over relief from personal income tax if it was paid to a complying superannuation fund, a complying approved deposit fund, a provider of a retirement savings account, or to a provider of an eligible annuity immediately after it is made.

Section 27A of the ITAA 1936 was repealed by Superannuation Legislation Amendment (Simplification) Act 2007. Subsection 27A(12) of the ITAA 1936 does not apply for the 2007-08 income year and later income years. This ruling continues to be a precedential view in respect of decisions for income years up to, and including the 2006-07 income year.