Income Tax Regulations (Amendment) (Cth)

Case
No judgment structure available for this case.

Statutory Rules 1990

No. 1261

Income Tax Regulations2 (Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Income Tax Assessment Act 1936.

Dated 29 May 1990.

BILL HAYDEN

Governor-General

By His Excellency's Command,

Paul Keating

Treasurer

Commencement

1. These Regulations commence on 30 June 1990.

Eligible termination payments—roll-over

2. Regulation 33a of the Income Tax Regulations is amended:

(a) by omitting from subregulation (1) the definitions of "post 30 June 1983 component" and "pre 1 July 1983 component";

(b) by inserting in subregulation (1) the following definitions:

" 'post-June 83 component', in relation to an eligible termination payment, has the same meaning as in paragraph 27aa (1) (e) of the Act;

'pre-July 83 component', in relation to an eligible termination payment, has the same meaning as in paragraph 27aa (1) (d) of the Act;

'taxed element of the post-June 83 component' means the extent, determined under section 27ab of the Act, to which the post-June 83 component consists of a taxed element;

(S.R. 109/90)—Cat. No. 14/7.5.90

 

'untaxed element of the post-June 83 component' means the extent, determined under section 27ab of the Act, to which the post-June 83 component does not consist of a taxed element;";

(c) by omitting subparagraphs (3) (b) (i), (ii), (iii) and (iv) and substituting the following subparagraphs:

"(i) the concessional component; and

(ii) the pre-July 83 component; and

(iii) the taxed element of the post-June 83 component; and

(iv) the untaxed element of the post-June 83 component; and

(v) the undeducted contributions: and";

(d) by inserting in paragraph (6) (c) "payment" after "termination".

3. After regulation 54 of the Income Tax Regulations the following subdivision is inserted in Division 2 of Part VI before Subdivision A:

"Subdivision AAAA—Interpretation of Division 2

Interpretation

"54aa. Expressions used in this Division that are used in Division 2 of Part VI of the Act have, unless the contrary intention appears, the same meanings in this Division as in that Division.".

Interpretation

4. Regulation 54a of the Income Tax Regulations is amended:

(a) by inserting after subregulation (1) the following subregulation:

"(1aa) Expressions used in this Subdivision that are used in Subdivision aab of Division 17 of Part III of the Act have, unless the contrary intention appears, the same meanings in this Subdivision as in that subdivision.";

(b) by inserting after paragraph (2) (b) the following word and paragraph:

"; or (c) a declaration furnished under regulation 54dacc that, by virtue of regulation 54dag, has effect for the purposes of this Subdivision.".

5. After regulation 54daac of the Income Tax Regulations the following regulation is inserted:

Rate of deductions—rebatable ETP annuities and rebatable superannuation pensions

"54daad. Where:

(a) any salary or wages that an employee (other than an employee to whom regulation 54daab applies) receives, or is entitled to receive, in respect of a week, or part of a week, in a year of income from an employer comprises or comprise:

 

(i) an amount of rebatable superannuation pension; or

(ii) an amount of rebatable ETP annuity; and

(b) the employee has furnished to the employer a declaration referred to in paragraph 54a (2) (c) in respect of the amount;

the prescribed rate of deductions to be made in respect of the week, or the part of the week, for the purpose of subsection 221c (1) of the Act from the amount is:

(c) the income tax instalment amount that, but for this regulation, would be deducted under this Subdivision from the amount;

reduced by:

(d) where that amount is an amount of rebatable superannuation pension—an amount calculated using the formula:

Deductible

Final

×

Amount of the

–

27h amount

–

;or

rebatable

Number of

s.159ss

percentage

superannuation

instalments

amount

pension

of rebatable

Superannuation

pension

 (e) where that amount is an amount of rebatable ETP annuity— an amount calculated using the formula:

Final

×

Amount of

–

Deductible 27h amount

;

The rebatable

Number of instalments

percentage

ETP annuity

of annuity

 

where in those formulae:

'Deductible 27h amount' means the deductible amount calculated in accordance with section 27h of the Act in respect of the rebatable ETP annuity or rebatable superannuation pension, as the case requires;

'Final percentage' is:

(a) for the purposes of paragraph (d)—an amount calculated in accordance with section 159sp of the Act in respect of the rebatable superannuation pension; and

(b) for the purposes of paragraph (e)—an amount calculated in accordance with section 159sw of the Act in respect of the rebatable ETP annuity;

'Number of instalments of annuity' is the number of instalments of the rebatable ETP annuity to be paid in the year of income;

'Number of instalments of rebatable superannuation pension' is the number of instalments of the rebatable superannuation pension to be paid in the year of income;

's.159ss amount' is the part, if any, of the amount of rebatable superannuation pension in respect of which a notice under section 159ss of the Act is given.".

 

6. After regulation 54dacb of the Income Tax Regulations the following regulation is inserted:

Furnishing of declaration of entitlement to rebate under section 159sm or 159su of the Act

"54dacc. (1) Subject to regulation 54dah, an employee who wants to have:

(a) a rebate under section 159sm of the Act; or

(b) a rebate under section 159su of the Act;

taken into account in determining the prescribed rate of deductions to be made for the purpose of subsection 221c (1) of the Act must furnish a declaration under this regulation to his or her employer to the effect that the employee is entitled to the rebate.

"(2) Where:

(a) an employee is entitled to a rebate referred to in paragraph (1) (a) or (b); and

(b) the employee has furnished a declaration under subregulation (1); and

(c) a change of circumstances is to be taken into account for the purposes of subregulation (1);

the employee may furnish another declaration to the employer setting out the circumstances as changed.

"(3) A declaration under this regulation must:

(a) be in a form provided by the Commissioner: and

(b) be signed by the employee; and

(c) be dated on the day on which it is made.

"(4) Nothing in this regulation prevents a declaration referred to in paragraph 54a (2) (a) and a declaration under this regulation being combined in one form.

"(5) Nothing in this regulation prevents a declaration under this regulation being incorporated in the form for an employment declaration.".

Operation of declaration

7. Regulation 54dag of the Income Tax Regulations is amended by omitting subregulation (4) and substituting the following subregulation:

"(4) Subject to subregulation (6), where, after having furnished to his or her employer:

(a) a declaration referred to in subregulation 54dag (1); or

(b) a Medicare levy variation declaration under regulation 54daca; or

(c) a declaration under regulation 54dacc;

 

an employee furnishes a further declaration of that type, the earlier declaration does not have effect for the purposes of this Subdivision in relation to payments of salary or wages to the employee on and after the date on which the employer begins to give effect to the further declaration for the purposes of this Subdivision.".

Commissioner's certificate

8. Regulation 54daj of the Income Tax Regulations is amended by adding at the end the following word and paragraph:

"; or (c) where the declaration is a declaration referred to in paragraph 54a (2) (c):

(i) that the employee has furnished a declaration under regulation 54dacc to the Commissioner; and

(ii) the reduction to be made from the rate of deduction to be made for the purpose of subsection 221c (1) of the Act by an employer from any payments of an amount of rebatable superannuation pension or rebatable ETP annuity to the employee; and

(iii) the date (not more than 13 months later than the date on which the certificate is issued) on which the certificate is to cease to have effect.".

Effect of certificate

9. Regulation 54dak of the Income Tax Regulations is amended by inserting at the end of subregulation (1) the following word and paragraph:

"; and (f) where the certificate was issued upon the Commissioner having received a declaration referred to in paragraph 54a (2) (c) furnished by the employee under regulation 54dah—a declaration furnished under regulation 54dacc had effect for the purposes of this Subdivision in relation to those payments.".

Operation of certificate

10. Regulation 54dal of the Income Tax Regulations is amended by omitting from subregulation (1) all the words after "in the certificate" and substituting "under subparagraph 54daj (a) (iv), (b) (iii) or (c) (iii), as the case may be".

Change in circumstances affecting entitlement

11. Regulation 54dam of the Income Tax Regulations is amended by omitting from subregulation (1) "or 159l" and substituting ", 159l, 159sm or 159su".

 

Interpretation

12. Regulation 54dao of the Income Tax Regulations is amended:

(a) by omitting subregulation (1) and substituting the following subregulation:

"(1) Expressions used in this Subdivision that are used in Subdivisions aaa and aab of Division 17 of Part III of the Act have, unless the contrary intention appears, the same meanings in this Subdivision as in that Subdivision.";

(b) by omitting from subregulation (2) the definitions of "post 30 June 1983 component" and "pre 1 July 1983 component";

(c) by inserting in subregulation (2) the following definitions:

"'post-June 83 component', in relation to an ETP, has the same meaning as in paragraph 27aa (1) (e) of the Act;

'pre-July 83 component', in relation to an ETP, has the same meaning as in paragraph 27aa (1) (d) of the Act;

'taxed element of the post-June 83 component' means the extent, determined under section 27ab of the Act, to which the post-June 83 component consists of a taxed element;

'untaxed element of the post-June 83 component' means the extent, determined under section 27ab of the Act, to which the post-June 83 component does not consist of a taxed element.".

Rates of deductions: ETP

13. Regulation 54dap of the Income Tax Regulations is amended:

(a) by omitting subregulation (1) and substituting the following subregulations:

"(1) Where any salary or wages that an employee (not being an employee to whom subregulation (1a) applies) receives, or is entitled to receive, in respect of a week or part of a week comprises or comprise an amount:

(a) that is:

(i) the taxed element of the post-June 83 component of an ETP; or

(ii) the untaxed element of the post-June 83 component of an ETP; and

(b) to which a roll-over nomination referred to in paragraph 54daq (1) (b) does not apply;

the prescribed rate of deductions to be made for the purpose of subsection 221c(1) of the Act from the amount is set out in the following tables:

 

TABLE 1

s. 27b (1) (a) amounts

Item

Class of eligible assessable income

Part that is subject to deduction

Rates of deductions (%) for year of income commencing on 1 July

1990

1991

1992 or later

1

27b (1) (a)-B55-F84

derived amount

25.25

23.25

21.25

2

27b (1) (a)-A55-F84

low rate part

7.25

4.25

0.00

3

27b (1) (a)-A55-F84

remaining part

22.25

19.25

16.25

4

27b (1) (a)-B55-F85

derived amount

21.25

21.25

21.25

5

27b (1) (a)-A55-F85

low rate part

0.00

0.00

0.00

6

27b (1) (a)-A55-F85

remaining part

16.25

16.25

16.25

7

27b (1) (a)-B55-F86

derived amount

21.25

21.25

21.25

8

27b (1) (a)-A55-F86

low rate part

0.00

0.00

0.00

9

27b (1) (a)-A55-F86

remaining part

16.25

16.25

16.25

10

27b (1) (a)-B55-F87

derived amount

21.25

21.25

21.25

11

27b (1) (a)-A55-F87

low rate part

0.00

0.00

0.00

12

27b (1) (a)-A55-F87

remaining part

16.25

16.25

16.25

TABLE 2

s. 27b(1) (b) amounts

Item

Class of eligible assessable income

Part that is subject to deduction

Rates of deductions (%) for year of income commencing on 1 July

1990 or later

1

27b (1) (b)-B55

derived amount

31.25

2

27b (1) (b)-A55

low rate part

16.25

3

27b (1) (b)-A55

remaining part

31.25

"(1aa) The amount of eligible assessable income that comes within a class described in Table 1 is determined in accordance with subsection 159sc (1) of the Act.

"(1ab) The amount of eligible assessable income that comes within a class described in Table 2 is determined in accordance with subsection 159sc (2) of the Act.

"(1ac) The parts, specified in Tables 1 and 2, of the classes of eligible assessable income that are subject to deduction are determined as follows:

(a) the 'derived amount' is so much of the s.27b (1) (a) amount or the s.27b (1) (b) amount, as the case requires, as is attributable to the corresponding class of eligible assessable income;

(b) the 'low rate part' is, subject to subregulations (1ad) and (1ae), so much of the derived amount for the class of

 

eligible assessable income concerned as does not exceed the upper limit for the current year:

(c) the 'remaining part' is so much of the derived amount for the class of eligible assessable income concerned as is left over after deducting the low rate part.

"(1ad) For the purposes of subregulation (1), where a post-June 83 component for the current year comprises both s.27b (1) (a) amounts and s.27b (1) (b) amounts:

(a) the total of the low rate parts of those amounts must not exceed the upper limit for the current year; and

(b) the low rate part of the total of the s.27b (1) (b) amounts is so much of that total as does not exceed so much (if any) of the upper limit as is left over after deduction of the total of the s.27b (1) (a) amounts for the current year.

"(1ae) For the purposes of subregulation (1), where the total of the s.27b (1) (a) amounts of a post-June 83 component for the current year comprises 2 or more of the following classes of eligible assessable income of an age 55 ETP, the low rate parts of the s.27b (1) (a) amounts are determined by deducting from the upper limit for the current year, in the following order, each of the amounts of eligible assessable income that comes within those classes:

  • 1

     27b (1) (a)-A55-F87

  • 2

     27b (1) (a)-A55-F86

  • 3

     27b (1) (a)-A55-F85

  • 4

     27b (1) (a)-A55-F84.

"(1af) The amount of a deduction to be made from a part of an amount referred to in subregulation (1) is the amount that is a multiple of 5 cents that is, or is nearest to, the amount calculated by multiplying that part by the prescribed rate of deduction applicable under subregulation (1) to that part.";

(b) by omitting from subregulation (2) "post 30 June 1983" and substituting "post-June 83";

(c) by omitting from subregulation (2) "the amount (if any) specified in accordance with sub-paragraph 54daq (2) (b) (iii)" and substituting "the amounts (if any) specified in accordance with subparagraphs 54daq (2) (b) (iii) and (iv)".

Statement of termination payment

14. Regulation 54daq of the Income Tax Regulations is amended:

(a) by omitting sub-subparagraphs (1) (a) (i) (a), (b), (c), (d) and (e) and substituting the following sub-subparagraphs:

"(a) the concessional component (if any); and

(b) the pre-July 83 component (if any); and

 

(c) the taxed element of the post-June 83 component (if any); and

(d) the untaxed element of the post-June 83 component (if any); and

(e) the undeducted contributions (if any); and

(f) the non-qualifying component (if any); and";

(b) by omitting subparagraphs (2) (b) (i), (ii), (iii) and (iv) and substituting the following subparagraphs:

"(i) the concessional component: and

(ii) the pre-July 83 component; and

(iii) the taxed element of the post-June 83 component; and

(iv) the untaxed element of the post-June 83 component; and

(v) the undeducted contributions; and";

(c) by omitting "pre 1 July 1983" from the definition of "B" in subregulation (5) and substituting "pre-July 83".

NOTES

1. Notified in the Commonwealth of Australia Gazette on 5 June 1990.

2. Statutory Rules 1936 No. 94 as amended to date. For previous amendments see Note 2 to Statutory Rules 1990 No. 19 and see also Statutory Rules 1990 No. 19.

Printed by Authority by the Commonwealth Government Printer

Actions
Download as PDF Download as Word Document
Cases Citing This Decision

0

Cases Cited

0

Statutory Material Cited

0