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10 J. Austl. Tax'n 1 (2007)

handle is hein.journals/jouaustx10 and id is 1 raw text is: By Celeste M Black* The recent application of the eligible termination payment proisions to amiounts recelied o the settlement of employment-related disputes has lead to the result that such paytments are taxed on the same basis as other employer-funded termination payn ents, such as golden handshakes. Howvevuer, these settlement payments are findamentally different in character to golden handshakes and arise fromn disputtes which will often raise a number of issutes, including claims which are Personal inl nature sugch as unfair dismFissal or deam ation. This article seeks to comprehensiely analyse the amrious taxation regi0es5 hich ay be triggered by sutch receipts and questions whether an-y coherent Policy can be identified to support the levFel of taxation which these regimes provide. 1. INTRODUCTION A number of decisions of the courts and Administrative Appeals Tribunal' have highlighted the taxation issues which can arise where a dispute relating to the termination of employment is settled or a court order is made requiring a payment by the employer to the employee. As a result of the connection between the payment and the termination, such a payment will be characterised for income tax *Lecturer, Faculty of Law, The University of Sydney. 1See. eg. Re McCunn and Federal Commissioner of Taxation (2006~) 62 ATR 1216; Re Applicant and Federal Commissioner of Taxation (2005) 59 ATR 1161; Case 7/2005 (2005) 2005 ATC 162; Dibb v Federal Commissioner of Taxation (2004) 55 ATR 786; Le Grand v Federal Commissioner of Taxation (2002) 51 ATR 139. (2007) 10(1)