The Australian Financial Review --- Page: 43 : 13 December 2006 Original article by John Wasiliev
ABIX Summary
The Australian Government has changed the tax treatment of job-termination payments. Those nearing retirement may need to reassess their plans in light of the changes, detailed in legislation released in the week beginning 4 December 2006. Eligible termination payments will be considered separately from retirement savings as of 1 July 2007. Amounts above $A140,000 will attract the top marginal tax rate. The change is expected to bring an end to the big termination payments commonly paid to senior and middle managers. These will be replaced by salary sacrifice towards superannuation. Transitional entitlements are available until 2012.
