Tax Laws Amendment (Simplified Superannuation) Act 2007 (Cth)

Tax Laws Amendment (Simplified Superannuation) Act 2007

No. 9, 2007

An Act to amend the law relating to taxation, superannuation, social security and veterans’ entitlements, and for related purposes

Contents

Tax Laws Amendment (Simplified Superannuation) Act 2007

No. 9, 2007

An Act to amend the law relating to taxation, superannuation, social security and veterans’ entitlements, and for related purposes

[Assented to 15 March 2007]

The Parliament of Australia enacts:

1Short title

This Act may be cited as the Tax Laws Amendment (Simplified Superannuation) Act 2007.

2Commencement

1. (1)

   Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day on which this Act receives the Royal Assent.	15 March 2007
2. Schedules 1 to 3	The day on which this Act receives the Royal Assent.	15 March 2007
3. Schedule 4, items 1 to 13	The day on which this Act receives the Royal Assent.	15 March 2007
4. Schedule 4, item 14	The later of: (a) at the same time as the provision(s) covered by table item 3; and (b) immediately after the commencement of items 20 and 21 in Schedule 2 to the Tax Laws Amendment (2006 Measures No. 6) Act 2007. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur.	15 March 2007 (paragraph (a) applies)
5. Schedule 4, items 15 and 16	The day on which this Act receives the Royal Assent.	15 March 2007
6. Schedule 5, items 1 to 34	The day on which this Act receives the Royal Assent.	15 March 2007
7. Schedule 5, item 35	Immediately after the provisions covered by table item 2.	15 March 2007
8. Schedule 5, item 36	The day on which this Act receives the Royal Assent.	15 March 2007
9. Schedules 6 and 7	The day on which this Act receives the Royal Assent.	15 March 2007
10. Schedule 8, Part 1	20 September 2007.	20 September 2007
11. Schedule 8, Part 2	1 July 2007.	1 July 2007
12. Schedule 9, Part 1	20 September 2007.	20 September 2007
13. Schedule 9, Part 2	1 July 2007.	1 July 2007
14. Schedule 10	The day on which this Act receives the Royal Assent.	15 March 2007

Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

1. (2)

   Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Main superannuation amendmentsPart 1Main amendments

Income Tax Assessment Act 1997

1

After Part 3‑10

Insert:

Part 3‑30—Superannuation

Division 280—Guide to the superannuation provisions

Table of sections

280‑1 Effect of this Division

280‑5 Overview

Contributions phase

280‑10 Contributions phase—deductibility

280‑15 Contributions phase—limits on superannuation tax concessions

Investment phase

280‑20 Investment phase

Benefits phase

280‑25 Benefits phase—different types of superannuation benefit

280‑30 Benefits phase—taxation varies with age of recipient and type of benefit

280‑35 Benefits phase—roll‑overs

The regulatory scheme outside this Act

280‑40 Other relevant legislative schemes

280‑1Effect of this Division

1. (1)

   This Division is a *Guide.

2. (2)

   Tax concessions in this Part are intended to encourage Australians to save in order to make provision for their retirement, recognising that superannuation investments, and the income from them, are quarantined for retirement.

280‑5Overview

1. (1)

   There are 3 phases in the tax treatment of superannuation, as follows:

   1. (a)

      the contributions phase;

   2. (b)

      the investment phase;

   3. (c)

      the benefits phase.

2. (2)

   In the contributions phase, contributions are made to a superannuation plan in respect of a member of the plan.

3. (3)

   In the investment phase, these contributions are invested by the superannuation provider.

4. (4)

   In the benefits phase, these contributions, plus earnings from investing them, are usually paid as benefits to the member when he or she retires after reaching preservation age. In the event of death, the benefits are usually paid to the member’s dependants.

5. (5)

   There is also a regulatory scheme outside this Act that is relevant to the taxation treatment of superannuation. For example, other Acts set out prudential and operating standards for superannuation providers.

Contributions phase

280‑10Contributions phase—deductibility

Contributions that can be deducted

1. (1)

   Employers can usually deduct contributions they make in respect of their employees. Individuals can usually deduct contributions they make in respect of themselves if less than 10% of their total assessable income (plus reportable fringe benefits) for the income year is attributable to employment or similar activities.

Other contributions cannot be deducted

1. (2)

   Other contributions cannot be deducted. These include personal contributions made by individuals whose employment income is 10% or more of their total income, and contributions made by others in respect of them (such as contributions by a spouse or family member, or Government co‑contributions).

280‑15Contributions phase—limits on superannuation tax concessions

1. (1)

   There is a limit to contributions that can be made in respect of an individual in a year that receive favourable tax treatment. This limit takes the form of a tax on excessive contributions, and neutralises the favourable tax treatment arising from the excessive contributions.

2. (2)

   If concessional contributions exceed an indexed cap, the individual concerned is taxed on the excess. This tax liability can be met by releasing money from his or her superannuation interests.

3. (3)

   If non‑concessional contributions (including any excess for the purposes of the first cap) exceed a second indexed cap, the individual is taxed on the excess. The second cap is equivalent to three times the first cap. The payment of this tax liability must be accompanied by releasing money equivalent to the liability from his or her superannuation interests.

Investment phase

280‑20Investment phase

1. (1)

   Contributions that can be deducted are assessable income of the superannuation provider. Contributions that cannot be deducted are not assessable income of the superannuation provider. (There are some exceptions.)

2. (2)

   Earnings on the investment of amounts in a superannuation plan are assessable income of the superannuation provider.

3. (3)

   The superannuation provider’s taxable income is generally taxed at the concessional rate of 15%.

4. (4)

   However, superannuation providers pay no tax on earnings from the assets that support the payment of benefits in the form of income streams, once the income streams have commenced.

Benefits phase

280‑25Benefits phase—different types of superannuation benefit

Superannuation benefits can be drawn down as lump sums, income streams (such as pensions or annuities), or combinations of both. Different tax treatment may apply depending on whether a lump sum or income stream is paid.

280‑30Benefits phase—taxation varies with age of recipient and type of benefit

1. (1)

   The taxation of superannuation benefits depends primarily on the age of the member.

2. (2)

   If the member is aged 60 or over, superannuation benefits (both lump sums and income streams) are tax free if the benefits have already been subject to tax in the fund (that is, where the benefits comprise a taxed element). This covers the great majority of superannuation members.

3. (3)

   Where a superannuation benefit contains an amount that has not been subject to tax in the fund (an untaxed element), this element is subject to tax for those aged 60 or over, though at concessional rates. This is relevant generally to those people (for example, public servants), who are members of a superannuation fund established by the Australian Government or a state government.

4. (4)

   If the member is less than 60, superannuation benefits may receive concessional taxation treatment, though the treatment is less concessional than for those aged 60 and over.

5. (5)

   Superannuation benefits may also include a “tax free component”; this component of the benefit is always paid tax free.

6. (6)

   Additional tax concessions may apply when superannuation benefits are paid after a member’s death.

280‑35Benefits phase—roll‑overs

A member can “roll over” their superannuation benefits from one complying superannuation plan to another, or between different interests in the same plan. This is usually done to keep the benefits invested in the superannuation system, or to convert a lump sum to a superannuation income stream. No tax is generally payable until the benefits are finally drawn down.

The regulatory scheme outside this Act

280‑40Other relevant legislative schemes

1. (1)

   The Superannuation Industry (Supervision) Act 1993 and the Retirement Savings Accounts Act 1997 regulate the prudential and operating standards for superannuation providers. Concessional tax treatment is generally available only if providers comply with these standards.

2. (2)

   Other legislative schemes relevant to superannuation include the following:

   1. (a)

      the Superannuation Guarantee (Administration) Act 1992, which requires that employers provide a minimum level of superannuation contributions for each of their eligible employees;

   2. (b)

      the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003, which provides for Government co‑contributions to low income earners’ superannuation;

   3. (c)

      the Small Superannuation Accounts Act 1995, which provides a facility to accept payments of superannuation guarantee shortfalls;

   4. (d)

      the Superannuation (Unclaimed Money and Lost Members) Act 1999, which provides for the payment of unclaimed superannuation money, and the maintenance of a register of lost members.

Division 290—Contributions to superannuation funds

Table of Subdivisions

Guide to Division 290

290‑A General rules

290‑B Deduction of employer contributions and other employment‑connected contributions

290‑C Deducting personal contributions

290‑D Tax offsets for spouse contributions

Guide to Division 290

290‑1What this Division is about

This Division sets out the rules for deductions and tax offsets for superannuation contributions.

Subdivision 290‑A—General rules

Table of sections

290‑5 Non‑application to roll‑over superannuation benefits etc.

290‑10 No deductions other than under this Division

290‑5Non‑application to roll‑over superannuation benefits etc.

This Division does not apply to a contribution that is any of the following:

1. (a)

   a *roll‑over superannuation benefit;

2. (b)

   a *superannuation lump sum that is paid from a *foreign superannuation fund.

290‑10No deductions other than under this Division

1. (1)

   You cannot deduct under this Act an amount you pay as a contribution to a *complying superannuation fund or *RSA, except as provided by this Division.

2. (2)

   You cannot deduct under this Act an amount you pay as a contribution to a *non‑complying superannuation fund, except as provided by this Division.

   Note: Under Subdivision 290‑B (Deduction of employer contributions and other employment‑connected contributions), you may be able to deduct contributions you make to a non‑complying fund that you believe to be a complying fund.

Subdivision 290‑B—Deduction of employer contributions and other employment‑connected contributions

Table of sections

Deducting employer contributions

290‑60 Employer contributions deductible

290‑65 Application to employees etc.

Conditions for deducting an employer contribution

290‑70 Assessable income or business conditions

290‑75 Complying fund conditions

290‑80 Age related conditions

Other employment‑connected deductions

290‑85 Contributions for former employees etc.

290‑90 Controlling interest deductions

290‑95 Amounts offset against superannuation guarantee charge

Returned contributions

290‑100 Returned contributions assessable

Deducting employer contributions

290‑60Employer contributions deductible

1. (1)

   You can deduct a contribution you make to a *superannuation fund, or an *RSA, for the purpose of providing *superannuation benefits for another person who is your employee when the contribution is made (regardless whether the benefits are payable to a *SIS dependant of the employee if the employee dies before or after becoming entitled to receive the benefits).

   Note: Other provisions of this Act and the Income Tax Assessment Act 1936 may reduce, increase or deny the deduction in certain circumstances. For example, see sections 85‑25 and 86‑75 of this Act and subsection 73B(14) of the Income Tax Assessment Act 1936.

2. (2)

   However, the conditions in sections 290‑70, 290‑75 and 290‑80 must also be satisfied for you to deduct the contribution.

3. (3)

   You can deduct the contribution only for the income year in which you made the contribution.

4. (4)

   You cannot deduct the contribution if it is an amount paid by you, as mentioned in regulations under the Family Law Act 1975, to a regulated superannuation fund (within the meaning of that Act), or to an *RSA, to be held for the benefit of your *non‑member spouse in satisfaction of his or her entitlement in respect of the *superannuation interest concerned.

290‑65Application to employees etc.

1. (1)

   At a time when an individual is an employee of an entity within the expanded meaning of employee given by section 12 of the Superannuation Guarantee (Administration) Act 1992, this Subdivision applies as if the individual were an employee of the entity.

2. (2)

   For the purposes of this Subdivision:

   1. (a)

      in relation to a contribution by a partnership in respect of an employee of the partnership—treat the employee as an employee of the partnership; and

   2. (b)

      in relation to a contribution by a partner in a partnership in respect of an employee of the partnership—treat the employee as an employee of the partner.

Conditions for deducting an employer contribution

290‑70Assessable income or business conditions

To deduct the contribution, the employee must be:

1. (a)

   engaged in producing your assessable income; or

2. (b)

   an Australian resident who is engaged in your business.

290‑75Complying fund conditions

1. (1)

   If the contribution was made to a *superannuation fund, at least one of these conditions must be satisfied:

   1. (a)

      the fund was a *complying superannuation fund for the income year of the fund in which you made the contribution;

   2. (b)

      at the time you made the contribution, you had reasonable grounds to believe that the fund was a complying superannuation fund for that income year;

   3. (c)

      at or before the time you made the contribution, you obtained a written statement (given by or on behalf of the trustee of the fund) that the fund:

      1. (i)

         was a resident regulated superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993); and

      2. (ii)

         was not subject to a direction under section 63 of that Act (which prevents a fund from accepting employer contributions).

2. (2)

   However, the condition in paragraph (1)(b) or (c) cannot be satisfied if, when the contribution was made:

   1. (a)

      you were:

      1. (i)

         the trustee or the manager of the fund; or

      2. (ii)

         an *associate of the trustee or the manager of the fund; and

   2. (b)

      you had reasonable grounds to believe that:

      1. (i)

         the fund was not a resident regulated superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993); or

      2. (ii)

         the fund was operating in contravention of a regulatory provision (within the meaning of section 38A of that Act).

3. (3)

   For the purposes of subparagraph (2)(b)(ii), a contravention of the Superannuation Industry (Supervision) Act 1993 or regulations made under it is to be ignored unless the contravention is:

   1. (a)

      an offence; or

   2. (b)

      a contravention of a civil penalty provision of that Act or those regulations.

4. (4)

   For the purposes of subparagraph (2)(b)(ii), it is sufficient if a contravention is established on the balance of probabilities.

290‑80Age related conditions

1. (1)

   To deduct the contribution, either:

   1. (a)

      you must have made the contribution on or before the day that is 28 days after the end of the month in which the employee turns 75; or

   2. (b)

      you must have been required to make the contribution by an industrial award, determination or notional agreement preserving State awards (within the meaning given by Schedule 8 to the Workplace Relations Act 1996) that is in force under an *Australian law.

2. (2)

   If only paragraph (1)(b) applies, you can deduct only the amount of the contribution that is required by the industrial award, determination or notional agreement preserving State awards.

   Note: An industrial agreement, such as an Australian Workplace Agreement, Collective Agreement or preserved State agreement under the Workplace Relations Act 1996, or a similar agreement made under a State law, is not an award or determination.

Other employment‑connected deductions

290‑85Contributions for former employees etc.

1. (1)

   Section 290‑60 applies as modified by this section if a contribution you make in respect of another person:

   1. (a)

      reduces your charge percentage under sections 22 or 23 of the Superannuation Guarantee (Administration) Act 1992 in respect of the other person because of section 15B of that Act; or

   2. (b)

      is a one‑off payment in lieu of salary or wages that relate to a period of service during which the other person was your employee.

2. (2)

   Treat the other person as your employee for the purposes of subsection 290‑60(1).

3. (3)

   Despite subsection 290‑60(2), the condition in section 290‑70 must be satisfied only at the most recent time when the other person was your employee (apart from subsection (2) of this section).

290‑90Controlling interest deductions

1. (1)

   Section 290‑60 applies as modified by this section if you make a contribution in respect of another person at a time, and at that time:

   1. (a)

      the other person is an employee of a company in which you have a controlling interest; or

   2. (b)

      you are connected to the other person in the circumstances set out in subsection (5); or

   3. (c)

      you are a company connected to the other person in the circumstances described in subsection (6).

2. (2)

   Treat the other person as your employee at that time for the purposes of subsection 290‑60(1).

   Note 1: A deduction may be denied by section 85‑25 if the employee is your associate.

   Note 2: Section 86‑60 (read together with section 86‑75) limits the extent to which superannuation contributions by personal service entities are allowable deductions.

3. (3)

   Despite subsection 290‑60(2), for you to deduct the contribution the condition in subsection (4) needs to be satisfied instead of the condition in section 290‑70.

4. (4)

   The other person must be either:

   1. (a)

      engaged in producing the assessable income of the other person’s employer; or

   2. (b)

      an Australian resident engaged in the business of the other person’s employer.

5. (5)

   For the purposes of paragraph (1)(b), the circumstances are:

   1. (a)

      you are the beneficial owner of shares in a company of which the other person is an employee, but you do not have a controlling interest in the company; and

   2. (b)

      you are at *arm’s length with the other person in relation to the contribution; and

   3. (c)

      neither the other person, nor a *relative of the other person:

      1. (i)

         has set apart an amount as a fund, or has made a contribution to a fund, for the purpose of providing *superannuation benefits for you or a relative of yours; or

      2. (ii)

         has made an *arrangement under which the other person or relative will or may do so.

Company controlling interest deductions

1. (6)

   For the purposes of paragraph (1)(c), the circumstances are:

   1. (a)

      the other person is an employee of an entity that has a controlling interest in the company; or

   2. (b)

      an entity that has a controlling interest in the company also has a controlling interest in a company of which the other person is an employee.

290‑95Amounts offset against superannuation guarantee charge

You cannot deduct a contribution under this Act if you elect under subsection 23A(1) of the Superannuation Guarantee (Administration) Act 1992 that the contribution be offset against your liability to pay superannuation guarantee charge.

Note: You cannot deduct a charge imposed by the Superannuation Guarantee Charge Act 1992: see section 26‑95.

Returned contributions

290‑100Returned contributions assessable

1. (1)

   Your assessable income includes a payment, or the value of a benefit, you receive in the income year so far as it reasonably represents the direct or indirect return of:

   1. (a)

      a contribution for which you or another entity have deducted or can deduct an amount for any income year; or

   2. (b)

      earnings on a contribution of that kind.

      Note: An example of an indirect return of a contribution is if the fund to which it was made transfers to another fund assets that include the contribution, and the other fund returns the contribution to the person who made it.

2. (2)

   Subsection (1) does not apply if you receive the payment, or the value of the benefit, as a *superannuation benefit.

Subdivision 290‑C—Deducting personal contributions

Table of sections

290‑150 Personal contributions deductible

Conditions for deducting a personal contribution

290‑155 Complying superannuation fund condition

290‑160 Maximum earnings as employee condition

290‑165 Age‑related conditions

290‑170 Notice of intent to deduct conditions

290‑175 Deduction limited by amount specified in notice

290‑180 Notice may be varied but not revoked or withdrawn

290‑150Personal contributions deductible

1. (1)

   You can deduct a contribution you make to a *superannuation fund, or an *RSA, for the purpose of providing *superannuation benefits for yourself (regardless whether the benefits are payable to your *SIS dependants if you die before or after becoming entitled to receive the benefits).

   Note: Other provisions of this Act and the Income Tax Assessment Act 1936 may reduce, increase or deny the deduction in certain circumstances. For example, see section 26‑55 of this Act.

2. (2)

   However, the conditions in sections 290‑155, 290‑160, 290‑165 and 290‑170 must also be satisfied for you to deduct the contribution.

3. (3)

   You can deduct the contribution only for the income year in which you made the contribution.

Conditions for deducting a personal contribution

290‑155Complying superannuation fund condition

If the contribution is made to a *superannuation fund, it must be a *complying superannuation fund for the income year of the fund in which you made the contribution.

290‑160Maximum earnings as employee condition

1. (1)

   This section applies if:

   1. (a)

      in the income year in which you make the contribution, you engage in any of these activities:

      1. (i)

         holding an office or appointment;

      2. (ii)

         performing functions or duties;

      3. (iii)

         engaging in work;

      4. (iv)

         doing acts or things; and

   2. (b)

      the activities result in you being treated as an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (assuming that subsection 12(11) of that Act had not been enacted).

2. (2)

   To deduct the contribution, less than 10% of the total of the following must be attributable to the activities:

   1. (a)

      your assessable income for the income year;

   2. (b)

      your *reportable fringe benefits total for the income year.

290‑165Age‑related conditions

1. (1)

   If you were under the age of 18 at the end of the income year in which you made the contribution, you must have *derived income in the income year:

   1. (a)

      from the carrying on of a *business; or

   2. (b)

      attributable to activities covered by subsection 290‑160(1).

2. (2)

   In any other case, you must have made the contribution on or before the day that is 28 days after the end of the month in which you turn 75.

290‑170Notice of intent to deduct conditions

Deductibility of contributions

1. (1)

   To deduct the contribution, or a part of the contribution:

   1. (a)

      you must give to the trustee of the fund or the *RSA provider a valid notice, in the *approved form, of your intention to claim the deduction; and

   2. (b)

      the notice must be given before:

      1. (i)

         if you have lodged your *income tax return for the income year in which the contribution was made on a day before the end of the next income year—the end of that day; or

      2. (ii)

         otherwise—the end of the next income year; and

   3. (c)

      the trustee or provider must have given you an acknowledgment of receipt of the notice.

Validity of notices

1. (2)

   The notice is not valid if at least one of these conditions is satisfied:

   1. (a)

      the notice is not in respect of the contribution;

   2. (b)

      the notice includes all or a part of an amount covered by a previous notice;

   3. (c)

      when you gave the notice:

      1. (i)

         you were not a member of the fund or the holder of the *RSA; or

      2. (ii)

         the trustee or *RSA provider no longer holds the contribution; or

      3. (iii)

         the trustee or RSA provider has begun to pay a *superannuation income stream based in whole or part on the contributions;

   4. (d)

      before you gave the notice:

      1. (i)

         you had made a contributions‑splitting application (within the meaning given by the regulations) in relation to the contribution; and

      2. (ii)

         the trustee or RSA provider had not rejected the application.

Acknowledgment of notice

1. (3)

   The trustee or provider must, without delay, give you an acknowledgment of a valid notice, subject to subsection (4).

2. (4)

   The trustee or provider may refuse to give you an acknowledgment of receipt of a valid notice if the *value of the *superannuation interest into which the contribution is made, at the end of the day on which the trustee or *RSA provider received the notice, is less than the tax that would be payable in respect of your contribution (or part of the contribution) if the trustee or provider were to acknowledge receipt of the notice.

290‑175Deduction limited by amount specified in notice

You cannot deduct more for the contribution (or a part of the contribution) than the amount stated in the notice.

290‑180Notice may be varied but not revoked or withdrawn

1. (1)

   You cannot revoke or withdraw a valid notice in relation to the contribution (or a part of the contribution).

2. (2)

   You can vary a valid notice, but only so as to reduce the amount stated in relation to the contribution (including to nil). You do so by giving notice to the trustee or the *RSA provider in the *approved form.

3. (3)

   However, you cannot vary a valid notice after:

   1. (a)

      if you have lodged your *income tax return for the income year in which the contribution was made on a day before the end of the next income year—the end of that day; or

   2. (b)

      otherwise—the end of the next income year.

4. (4)

   Subsection (3) does not apply to a variation if:

   1. (a)

      you claimed a deduction for the contribution (or a part of the contribution); and

   2. (b)

      the deduction is not allowable (in whole or in part); and

   3. (c)

      the variation reduces the amount stated in relation to the contribution by the amount not allowable as a deduction.

Subdivision 290‑D—Tax offsets for spouse contributions

Table of sections

290‑230 Offset for spouse contribution

290‑235 Limit on amount of tax offsets

290‑240 Tax file number

290‑230Offset for spouse contribution

1. (1)

   You are entitled to a *tax offset for an income year for a contribution you make in the income year to a *superannuation fund, or an *RSA, for the purpose of providing *superannuation benefits for your *spouse (regardless whether the benefits are payable to your spouse’s *SIS dependants if your spouse dies before or after becoming entitled to receive the benefits).

2. (2)

   You are entitled to the *tax offset only if:

   1. (a)

      he or she was your *spouse when you made the contribution; and

   2. (b)

      both you and your spouse were Australian residents when you made the contribution; and

   3. (c)

      the total of your spouse’s assessable income and *reportable fringe benefits total for the income year is less than $13,800; and

   4. (d)

      you have not deducted and cannot deduct an amount for the contribution under section 290‑60 (employer contributions); and

   5. (e)

      if the contribution is made to a *superannuation fund—it is a *complying superannuation fund for the income year of the fund in which you make the contribution.

3. (3)

   You are not entitled to the *tax offset if, when you make the contribution, you are living separately and apart from your *spouse on a permanent basis.

4. (4)

   You are not entitled to the *tax offset for an amount paid by you, as mentioned in regulations under the Family Law Act 1975, to a regulated superannuation fund (within the meaning of that Act), or to an *RSA, to be held for the benefit of your *non‑member spouse in satisfaction of his or her entitlement in respect of the *superannuation interest concerned.

290‑235Limit on amount of tax offsets

1. (1)

   The total of the amounts of *tax offset to which you are entitled for contributions you make for an income year cannot exceed 18% of the lesser of the following:

   1. (a)

      $3,000 reduced by the amount (if any) by which the total mentioned in paragraph 290‑230(2)(c) for the income year exceeds $10,800;

   2. (b)

      the sum of the *spouse contributions you make in the income year.

2. (2)

   The maximum *tax offset to which you are entitled for an income year is $540, even if you are entitled to a tax offset for more than 1 *spouse.

290‑240Tax file number

If you are entitled to the *tax offset for the contribution, you may, with your *spouse’s consent, quote your spouse’s *tax file number to the trustee (or *RSA provider) of the *superannuation fund (or *RSA) to which the contribution is made.

Division 292—Excess contributions tax

Table of Subdivisions

Guide to Division 292

292‑A Object of this Division

292‑B Excess concessional contributions tax

292‑C Excess non‑concessional contributions tax

292‑D Modifications for defined benefit interests

292‑E Excess contributions tax assessments

292‑F Amending excess contributions tax assessments

292‑G Collection and recovery

292‑H Other provisions

Guide to Division 292

292‑1What this Division is about

This Division limits the superannuation contributions made in a financial year for a person that receive concessionally taxed treatment.

Subdivision 292‑A—Object of this Division

Table of sections

292‑5 Object of this Division

292‑5Object of this Division

The object of this Division is to ensure that the amount of concessionally taxed *superannuation benefits that a person receives results from superannuation contributions that have been made gradually over the course of the person’s life.

Subdivision 292‑B—Excess concessional contributions tax

292‑10What this Subdivision is about

This Subdivision defines concessional contributions and excess concessional contributions, and sets liability to pay excess concessional contributions tax.

Table of sections

Operative provisions

292‑15 Liability for excess concessional contributions tax

292‑20 Your excess concessional contributions for a financial year

292‑25 Your concessional contributions for a financial year

Operative provisions

292‑15Liability for excess concessional contributions tax

You are liable to pay *excess concessional contributions tax imposed by the Superannuation (Excess Concessional Contributions Tax) Act 2007 if you have *excess concessional contributions for a *financial year.

Note: The amount of the tax is set out in that Act.

292‑20Your excess concessional contributions for a financial year

1. (1)

   You have excess concessional contributions for a *financial year if the amount of your *concessional contributions for the year exceeds your *concessional contributions cap for the year. The amount of the excess concessional contributions is the amount of the excess.

2. (2)

   Your concessional contributions cap for the 2007‑2008 *financial year is $50,000. This amount is indexed annually.

   Note: Subdivision 960‑M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap: see section 960‑285.

   Note 2: For transitional rules about the period from 1 July 2007 to 30 June 2012, see section 292‑20 of the Income Tax (Transitional Provisions) Act 1997.

292‑25Your concessional contributions for a financial year

1. (1)

   The amount of your concessional contributions for a *financial year is the sum of:

   1. (a)

      each contribution covered under subsection (2); and

   2. (b)

      each amount covered under subsection (3).

      Note: For rules about defined benefit interests, see Subdivision 292‑D.

2. (2)

   A contribution is covered under this subsection if:

   1. (a)

      it is made in the *financial year to a *complying superannuation plan in respect of you; and

   2. (b)

      it is included in the assessable income of the *superannuation provider in relation to the plan; and

   3. (c)

      it is not any of the following:

      1. (i)

         an amount mentioned in subsection 295‑200(2);

      2. (ii)

         an amount mentioned in item 2 of the table in subsection 295‑190(1);

      3. (iii)

         a contribution made to a *constitutionally protected fund.

3. (3)

   An amount in a *complying superannuation plan is covered under this subsection if it is allocated by the *superannuation provider in relation to the plan for you for the year (other than an amount paid for or by you to the plan) to the extent to which the allocated amount exceeds an amount that, according to rules specified in the regulations, is reasonable having regard to:

   1. (a)

      the amounts paid for or by you to the superannuation plan; and

   2. (b)

      the plan’s investment earnings relating to your *superannuation interest or interests in the plan; and

   3. (c)

      any other relevant matters.

4. (4)

   Disregard Subdivision 295‑D for the purposes of paragraph (2)(b).

Subdivision 292‑C—Excess non‑concessional contributions tax

292‑75What this Subdivision is about

This Subdivision defines non‑concessional contributions and excess non‑concessional contributions, and sets liability to pay excess non‑concessional contributions tax.

Table of sections

Operative provisions

292‑80 Liability for excess non‑concessional contributions tax

292‑85 Your excess non‑concessional contributions for a financial year

292‑90 Your non‑concessional contributions for a financial year

292‑95 Contributions arising from structured settlements or orders for personal injuries

292‑100 Contribution relating to some CGT small business concessions

292‑105 CGT cap amount

Operative provisions

292‑80Liability for excess non‑concessional contributions tax

You are liable to pay *excess non‑concessional contributions tax imposed by the Superannuation (Excess Non‑concessional Contributions Tax) Act 2007 if you have *excess non‑concessional contributions for a *financial year.

Note: The amount of the tax is set out in that Act.

292‑85Your excess non‑concessional contributions for a financial year

1. (1)

   You have excess non‑concessional contributions for a *financial year if the amount of your *non‑concessional contributions for the year exceeds your *non‑concessional contributions cap for the year. The amount of the excess non‑concessional contributions is the amount of the excess.

2. (2)

   Your non‑concessional contributions cap for the year is the amount that is 3 times your *concessional contributions cap for the year.

3. (3)

   However, subsection (4) applies instead of subsection (2) in determining your non‑concessional contributions cap for a *financial year (the first year) if:

   1. (a)

      your *non‑concessional contributions for the first year exceed the amount mentioned in subsection (2) for that year; and

   2. (b)

      you are under 65 years at any time in the first year; and

   3. (c)

      a previous operation of subsection (4) does not determine your non‑concessional contributions cap for the first year.

4. (4)

   Work out your non‑concessional contributions cap for the first year and for the following 2 *financial years (the second year and third year) as follows:

   1. (a)

      your cap for the first year is 3 times the amount mentioned in subsection (2) for the first year;

   2. (b)

      your cap for the second year is:

      1. (i)

         if your *non‑concessional contributions for the first year fall short of your cap for the first year (worked out under paragraph (a))—the shortfall; or

      2. (ii)

         otherwise—nil;

   3. (c)

      your cap for the third year is:

      1. (i)

         if your *non‑concessional contributions for the second year fall short of your cap for the second year (worked out under paragraph (b))—the shortfall; or

      2. (ii)

         otherwise—nil.

292‑90Your non‑concessional contributions for a financial year

1. (1)

   The amount of your non‑concessional contributions for a *financial year is the sum of:

   1. (a)

      each contribution covered under subsection (2); and

   2. (b)

      the amount of your *excess concessional contributions (if any) for the financial year.

2. (2)

   A contribution is covered under this subsection if:

   1. (a)

      it is made in the *financial year to a *complying superannuation plan in respect of you; and

   2. (b)

      it is not included in the assessable income of the *superannuation provider in relation to the *superannuation plan; and

   3. (c)

      it is not any of the following:

      1. (i)

         a Government co‑contribution made under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003;

      2. (ii)

         a contribution covered under section 292‑95 (payments that relate to structured settlements or orders for personal injuries);

      3. (iii)

         a contribution covered under section 292‑100 (certain CGT‑related payments), to the extent that it does not exceed your *CGT cap amount when it is made;

      4. (iv)

         a contribution made to a *constitutionally protected fund (other than a contribution included in the *contributions segment of your *superannuation interest in the fund);

      5. (v)

         contributions not included in the assessable income of the superannuation provider in relation to the superannuation plan because of a choice made under section 295‑180;

      6. (vi)

         a contribution that is a *roll‑over superannuation benefit.

3. (3)

   Disregard Subdivision 295‑D for the purposes of paragraph (2)(b).

292‑95Contributions arising from structured settlements or orders for personal injuries

1. (1)

   A contribution is covered under this section if:

   1. (a)

      the contribution arises from:

      1. (i)

         the settlement of a claim that satisfies the conditions in subsection (3); or

      2. (ii)

         the settlement of a claim in relation to a personal injury suffered by you under a law of the Commonwealth or of a State or Territory relating to workers compensation; or

      3. (iii)

         the order of a court that satisfies the conditions in subsection (4); and

   2. (b)

      the contribution is made within 90 days after the later of the following:

      1. (i)

         the day of receipt of the payment from which the contribution is made; or

      2. (ii)

         in relation to subparagraph (a)(i) or (iii)—the day mentioned in subsection (2); and

   3. (c)

      2 legally qualified medical practitioners have certified that, because of the personal injury, it is unlikely that you can ever be *gainfully employed in a capacity for which you are reasonably qualified because of education, experience or training; and

   4. (d)

      no later than the time the contribution is made to a *superannuation plan, you or your *legal personal representative notify the *superannuation provider in relation to the plan, in the *approved form, that this section is to apply to the contribution.

2. (2)

   For the purposes of subparagraph (1)(b)(ii), the day is:

   1. (a)

      for a settlement mentioned in subparagraph (a)(i):

      1. (i)

         the day on which the agreement mentioned in paragraph (3)(c) was entered into; or

      2. (ii)

         if that agreement depends, for its effectiveness, on being approved (however described) by an order of a court, or on being embodied in a consent order made by a court—the day on which that order was made; or

   2. (b)

      for an order mentioned in subparagraph (1)(a)(iii)—the day on which the order was made.

3. (3)

   For the purposes of subparagraph (1)(a)(i), the conditions are as follows:

   1. (a)

      the claim:

      1. (i)

         is for compensation or damages for, or in respect of, personal injury suffered by you; and

      2. (ii)

         is made by you or your *legal personal representative;

   2. (b)

      the claim is based on the commission of a wrong, or on a right created by statute;

   3. (c)

      the settlement takes the form of a written agreement between the parties to the claim (whether or not that agreement is approved by an order of a court, or is embodied in a consent order made by a court).

4. (4)

   For the purposes of subparagraph (1)(a)(iii), the conditions are as follows:

   1. (a)

      the order is made in respect of a claim that:

      1. (i)

         is for compensation or damages for, or in respect of, personal injury suffered by you; and

      2. (ii)

         is made by you or your *legal personal representative;

   2. (b)

      the claim is based on the commission of a wrong, or on a right created by statute;

   3. (c)

      the order is not an order approving or endorsing an agreement as mentioned in paragraph (3)(c).

5. (5)

   If a claim is both:

   1. (a)

      for compensation or damages for personal injury suffered by you; and

   2. (b)

      for some other remedy (for example, compensation or damages for loss of, or damage to, property);

subsections (3) and (4) apply to the claim, but only to the extent that it relates to the compensation or damages referred to in paragraph (a), and only to amounts that, in the settlement agreement, or in the order, are identified as being solely in payment of that compensation or those damages.

292‑100Contribution relating to some CGT small business concessions

1. (1)

   A contribution is covered under this section if:

   1. (a)

      the contribution is made by you to a *complying superannuation plan in respect of you in a *financial year; and

   2. (b)

      the requirement in subsection (2), (4), (7) or (8) is met; and

   3. (c)

      you choose, in accordance with subsection (9), to apply this section to an amount that is all or part of the contribution.

2. (2)

   The requirement in this subsection is met if:

   1. (a)

      the contribution is equal to all or part of the *capital proceeds from a *CGT event for which you can disregard any *capital gain under section 152‑105 (or would be able to do so, assuming that a capital gain arose from the event); and

   2. (b)

      the contribution is made no later than either of the following:

      1. (i)

         the day you are required to lodge your tax return for the income year in which the CGT event happened;

      2. (ii)

         30 days after the day you receive the capital proceeds.

3. (3)

   For the purposes of paragraph (2)(a), ignore the requirement in paragraph 152‑105(b) if you are permanently incapacitated at the time of the *CGT event but were not permanently incapacitated at the time the relevant *CGT asset was acquired.

4. (4)

   The requirement in this subsection is met if:

   1. (a)

      just before a *CGT event, you were a *CGT concession stakeholder of an entity that could, under section 152‑110, disregard any *capital gain arising from the CGT event (or would be able to do so, assuming that a capital gain arose from the event); and

   2. (b)

      the entity makes a payment to you within 2 years after the CGT event; and

   3. (c)

      the contribution is equal to all or part of your stakeholder’s control percentage (within the meaning of subsection 152‑125(3)) of the *capital proceeds from the CGT event (but not exceeding the amount of the payment mentioned in paragraph (b)); and

   4. (d)

      the contribution is made within 30 days after the payment mentioned in paragraph (b).

5. (5)

   In determining whether the conditions in subsection (2) or (4) are satisfied for a *CGT event in relation to a *pre‑CGT asset, treat the asset as a *post‑CGT asset.

6. (6)

   For the purposes of paragraph (4)(a), ignore the requirement in paragraph 152‑110(1)(b) if a *controlling individual was permanently incapacitated at the time of the *CGT event but was not permanently incapacitated when the relevant *CGT asset was acquired.

7. (7)

   The requirement in this subsection is met if:

   1. (a)

      the contribution is equal to all or part of the *capital gain from a *CGT event that you disregarded under subsection 152‑305(1); and

   2. (b)

      the contribution is made no later than either of the following:

      1. (i)

         the day you are required to lodge your tax return for the income year in which the CGT event happened;

      2. (ii)

         30 days after the day you receive the *capital proceeds from the CGT event.

8. (8)

   The requirement in this subsection is met if:

   1. (a)

      just before a *CGT event, you were a *CGT concession stakeholder of an entity that could, under subsection 152‑305(2), disregard all or part of a *capital gain arising from the CGT event; and

   2. (b)

      the entity makes a payment to you that satisfies the conditions in section 152‑325; and

   3. (c)

      the contribution is equal to all or part of the capital gain arising from the CGT event (but not exceeding the amount of the payment mentioned in paragraph (b)); and

   4. (d)

      the contribution is made within 30 days after the payment mentioned in paragraph (b).

9. (9)

   To make a choice for the purposes of paragraph (1)(c), you must:

   1. (a)

      make the choice in the *approved form; and

   2. (b)

      give it to the *superannuation provider in relation to the *complying superannuation plan on or before the time when the contribution is made.

292‑105CGT cap amount

1. (1)

   Your CGT cap amount at the start of the 2007‑2008 *financial year is $1,000,000.

   Note: For transitional rules about contributions made in the period from 10 May 2006 to 30 June 2007, see section 292‑80 of the Income Tax (Transitional Provisions) Act 1997.

Reductions and increases

1. (2)

   If a contribution covered by section 292‑100 is made in respect of you at a time, reduce your CGT cap amount just after that time:

   1. (a)

      if the contribution falls short of your *CGT cap amount at that time—by the amount of the contribution; or

   2. (b)

      otherwise—to nil.

2. (3)

   At the start of each *financial year after the 2007‑2008 financial year, increase your CGT cap amount by the amount (if any) by which the index amount for that financial year exceeds the index amount for the previous financial year.

3. (4)

   For the purposes of subsection (3), the index amount for the 2007‑2008 *financial year is $1,000,000. The index amount is then indexed annually.

   Note: Subdivision 960‑M shows how to index amounts. However, annual indexation does not necessarily increase the index amount: see section 960‑285.

Subdivision 292‑D—Modifications for defined benefit interests

292‑155What this Subdivision is about

This Subdivision modifies the meaning of concessional contributions relating to defined benefits interests.

Table of sections

Operative provisions

292‑160 Application

292‑165 Concessional contributions—special rules for defined benefit interests

292‑170 Notional taxed contributions

292‑175 Defined benefit interest

Operative provisions

292‑160Application

1. (1)

   This Subdivision applies if, in a *financial year, you have:

   1. (a)

      a *superannuation interest that is or includes a *defined benefit interest; or

   2. (b)

      more than one superannuation interest that is or includes a defined benefit interest.

2. (2)

   However, this Subdivision does not apply in relation to a *superannuation interest in a *constitutionally protected fund.

292‑165Concessional contributions—special rules for defined benefit interests

Despite section 292‑25, the amount of your concessional contributions for the *financial year is the sum of:

1. (a)

   the contributions covered by subsection 292‑25(2), and the amounts covered by subsection 292‑25(3), to the extent to which they do not relate to the *defined benefit interest or interests; and

2. (b)

   your *notional taxed contributions for the financial year in respect of the defined benefit interest or interests.

292‑170Notional taxed contributions

1. (1)

   Your notional taxed contributions for a *financial year in respect of a *defined benefit interest has the meaning given by the regulations.

2. (2)

   Regulations made for the purposes of subsection (1) may provide for a method of determining the amount of the notional taxed contributions.

3. (3)

   Regulations made for the purposes of subsection (1) may define the *notional taxed contributions, and the amount of notional taxed contributions, in different ways depending on any of the following matters:

   1. (a)

      the person who has the *superannuation interest that is or includes the *defined benefit interest;

   2. (b)

      the *superannuation plan in which the superannuation interest exists;

   3. (c)

      the *superannuation provider in relation to the superannuation plan;

   4. (d)

      any other matter.

4. (4)

   Regulations made for the purposes of subsection (1) may specify circumstances in which the amount of *notional taxed contributions for a *financial year is nil.

5. (5)

   Subsections (2), (3) and (4) do not limit the regulations that may be made for the purposes of this section.

6. (6)

   Despite subsection (1), your notional taxed contributions for the *financial year in respect of the *defined benefit interest are equal to your *concessional contributions cap for the financial year if:

   1. (a)

      this Subdivision applies in relation to you because you have a defined benefit interest in a financial year; and

   2. (b)

      apart from this subsection, the notional taxed contributions for the financial year in respect of the defined benefit interest exceed your concessional contributions cap for the financial year; and

   3. (c)

      either:

      1. (i)

         you held the defined benefit interest in a *superannuation fund on 5 September 2006; or

      2. (ii)

         all the requirements in subsection (7) are satisfied; and

   4. (d)

      if subparagraph (c)(i) applies and the rules of the superannuation fund have changed since 5 September 2006:

      1. (i)

         the notional taxed contributions mentioned in paragraph (b) do not exceed what they would have been if the rules of the fund had not changed since 5 September 2006; or

      2. (ii)

         all changes to those rules since 5 September 2006 are of a kind specified in the regulations.

7. (7)

   For the purposes of subparagraph (6)(c)(ii), the requirements are as follows:

   1. (a)

      you held a *defined benefit interest (the original interest) in a *superannuation fund (the original fund) on 5 September 2006;

   2. (b)

      the defined benefit interest mentioned in paragraph (6)(a) (the current interest) is in a different superannuation fund (the current fund);

   3. (c)

      the entire *value of the original interest was transferred to the current interest after 5 September 2006;

   4. (d)

      your rights under the current interest are equivalent to your rights under the original interest;

   5. (e)

      the notional taxed contributions mentioned in paragraph (6)(b) do not exceed what they would have been if:

      1. (i)

         the transfer mentioned in paragraph (c) had not taken place; and

      2. (ii)

         the rules of the original fund had not changed since 5 September 2006, or all changes to those rules since 5 September 2006 are of a kind specified in the regulations;

   6. (f)

      the requirements (if any) specified in the regulations are satisfied.

292‑175Defined benefit interest

1. (1)

   An individual’s *superannuation interest is a defined benefit interest to the extent that it defines the individual’s entitlement to *superannuation benefits payable from the interest by reference to one or more of the following matters:

   1. (a)

      the individual’s salary, or allowance in the nature of salary, at a particular date or averaged over a period;

   2. (b)

      another individual’s salary, or allowance in the nature of salary, at a particular date or averaged over a period;

   3. (c)

      a specified amount;

   4. (d)

      specified conversion factors.

2. (2)

   However, an individual’s *superannuation interest is not a defined benefit interest if it defines that entitlement solely by reference to one or more of the following:

   1. (a)

      *disability superannuation benefits;

   2. (b)

      *superannuation death benefits;

   3. (c)

      payments of amounts mentioned in paragraph 307‑10(a) (temporary disability payments).

Subdivision 292‑E—Excess contributions tax assessments

Guide to Subdivision 292‑E

292‑225What this Subdivision is about

The Commissioner may make an assessment of a person’s liability to pay excess contributions tax, and the excess contributions on which that liability is based.

Table of sections

Operative provisions

292‑230 Commissioner must make an excess contributions tax assessment

292‑235 Part‑year assessment

292‑240 Validity of assessment

292‑245 Objections

292‑250 Evidence

Operative provisions

292‑230Commissioner must make an excess contributions tax assessment

1. (1)

   The Commissioner must make an assessment (an excess contributions tax assessment) of:

   1. (a)

      if a person has *excess concessional contributions for a *financial year—the amount of the excess concessional contributions; and

   2. (b)

      the amount (if any) of *excess concessional contributions tax which the person is liable to pay in relation to the financial year.

2. (2)

   The Commissioner must make an assessment (also an excess contributions tax assessment) of:

   1. (a)

      if a person has *excess non‑concessional contributions for a financial year—the amount of the excess non‑concessional contributions; and

   2. (b)

      the amount (if any) of *excess non‑concessional contributions tax which the person is liable to pay in relation to the financial year.

3. (3)

   The Commissioner must give the person notice in writing of an *excess contributions tax assessment as soon as practicable after making the assessment.

4. (4)

   The notice may be included in a notice of any other assessment under this Act (including an assessment under this section).

292‑235Part‑year assessment

1. (1)

   The Commissioner may, at any time during a *financial year (the actual financial year), make an assessment of the matters mentioned in subsection 292‑230(1) for a person for a particular period within that year as if the beginning and end of that period were the beginning and end of a financial year.

2. (2)

   This Division applies, for the purposes of that assessment, as if:

   1. (a)

      the start and end of the period were the start and end of a *financial year; and

   2. (b)

      the assessment were an excess contributions tax assessment for that financial year.

3. (3)

   If the Commissioner makes an assessment under subsection (1), he or she must make an assessment under section 292‑230 in relation to the actual financial year as soon as possible after the end of that year.

4. (4)

   However, the Commissioner does not need to make an assessment mentioned in subsection (3) if he or she is satisfied that the assessment would not differ in a material way from the assessment under subsection (1).

292‑240Validity of assessment

The validity of an *excess contributions tax assessment is not affected because any of the provisions of this Act have not been complied with.

292‑245Objections

If a person is dissatisfied with an *excess contributions tax assessment made in relation to the person, the person may object against the assessment in the manner set out in Part IVC of the Taxation Administration Act 1953.

292‑250Evidence

Section 177 of the Income Tax Assessment Act 1936 applies as if a reference in that section to an assessment or a notice of assessment included a reference to an *excess contributions tax assessment or a notice of an excess contributions tax assessment, as required.

Subdivision 292‑F—Amending excess contributions tax assessments

Guide to Subdivision 292‑F

292‑300What this Subdivision is about

The Commissioner may amend excess contributions tax assessments within certain time limits.

Table of sections

Operative provisions

292‑305 Amendments within 4 years of the original assessment

292‑310 Amended assessments are treated as excess contributions tax assessments

292‑315 Later amendments—on request

292‑320 Later amendments—fraud or evasion

292‑325 Further amendment of an amended particular

292‑330 Amendment on review etc.

Operative provisions

292‑305Amendments within 4 years of the original assessment

1. (1)

   The Commissioner may amend an *excess contributions tax assessment for a person for a *financial year at any time during the period of 4 years after the *original excess contributions tax assessment day for the person for that year.

2. (2)

   The original excess contributions tax assessment day for a person for a *financial year is the day on which the Commissioner gives the first *excess contributions tax assessment to the person for the financial year.

292‑310Amended assessments are treated as excess contributions tax assessments

1. (1)

   Once an amended *excess contributions tax assessment for a person for a *financial year is made, it is taken to be an excess contributions tax assessment for the person for the year.

2. (2)

   If the Commissioner amends a person’s *excess contributions tax assessment, the Commissioner must give the person notice in writing of the amendment as soon as practicable after making the amendment.

3. (3)

   The notice may be included in a notice of any other assessment under this Act.

292‑315Later amendments—on request

The Commissioner may amend an *excess contributions tax assessment for a person for a *financial year after the end of the period of 4 years after the *original excess contributions tax assessment day for the person for the year if, within that 4 year period:

1. (a)

   the person applies for the amendment in the *approved form; and

2. (b)

   the person gives the Commissioner all the information necessary for making the amendment.

292‑320Later amendments—fraud or evasion

1. (1)

   If:

   1. (a)

      a person (or a *superannuation provider covered under subsection (2)) does not make a full and true disclosure to the Commissioner of the information necessary for an *excess contributions tax assessment for the person for a *financial year; and

   2. (b)

      in making the assessment, the Commissioner makes an under‑assessment; and

   3. (c)

      the Commissioner is of the opinion that the under‑assessment is due to fraud or evasion;

the Commissioner may amend the assessment at any time.

1. (2)

   A *superannuation provider is covered under this subsection if any of the following conditions are satisfied:

   1. (a)

      contributions have been made to a *superannuation plan of the provider on behalf of the person in the *financial year;

   2. (b)

      an amount is included in the person’s *concessional contributions for the financial year under subsection 292‑25(3) because the superannuation provider allocated it to the person;

   3. (c)

      *notional taxed contributions are included in the person’s concessional contributions for the financial year under section 292‑165 because of the person’s *defined benefit interest in a superannuation plan of the provider.

292‑325Further amendment of an amended particular

If:

1. (a)

   an *excess contributions tax assessment has been amended (the earlier amendment) in any particular; and

2. (b)

   the Commissioner is of the opinion that it would be just to further amend the assessment in that particular;

the Commissioner may do so within a period of 4 years after the earlier amendment.

292‑330Amendment on review etc.

Nothing in this Subdivision prevents the amendment of an *excess contributions tax assessment:

1. (a)

   to give effect to a decision on a review or appeal; or

2. (b)

   to reduce the assessment as a result of an objection or pending an appeal or review.

   Note: A person may make a complaint to the Superannuation Complaints Tribunal under section 15CA of the Superannuation (Resolution of Complaints) Act 1993 if the person is dissatisfied with a statement given to the Commissioner by a superannuation provider under section 390‑5 in Schedule 1 to the Taxation Administration Act 1953.

Subdivision 292‑G—Collection and recovery

Guide to Subdivision 292‑G

292‑380What this Subdivision is about

Excess contributions tax is due and payable at the end of 21 days after notice of assessment and the general interest charge applies to unpaid amounts. Money may be released from a superannuation plan to pay the tax.

Table of sections

Operative provisions

292‑385 Due date for payment of excess contributions tax

292‑390 General interest charge

292‑395 Refunds of amounts overpaid

292‑400 Security for payment of tax

292‑405 Release authority

292‑410 Giving a release authority to a superannuation provider

292‑415 Superannuation provider given release authority must pay amount

Operative provisions

292‑385Due date for payment of excess contributions tax

*Excess contributions tax assessed for a person for a *financial year is due and payable at the end of 21 days after the Commissioner gives the person notice of the *excess contributions tax assessment.

292‑390General interest charge

If *excess contributions tax payable by a person remains unpaid after the time by which it is due and payable, the person is liable to pay the *general interest charge on the unpaid amount for each day in the period that:

1. (a)

   starts at the beginning of the day on which the excess contributions tax was due to be paid; and

2. (b)

   ends at the end of the last day on which, at the end of the day, any of the following remains unpaid:

   1. (i)

      the excess contributions tax;

   2. (ii)

      general interest charge on any of the excess contributions tax.

   Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.

292‑395Refunds of amounts overpaid

Section 172 of the Income Tax Assessment Act 1936 applies for the purposes of this Part as if references in that section to tax included references to *excess contributions tax.

292‑400Security for payment of tax

In section 213 of the Income Tax Assessment Act 1936 (under which the Commissioner may require security for the payment of income tax), a reference to income tax includes a reference to *excess contributions tax.

292‑405Release authority

1. (1)

   As soon as practicable after making an *excess contributions tax assessment for a person, the Commissioner must give the person the following, in accordance with this section:

1. 1. (a)

      if the person is liable to pay an amount of *excess concessional contributions tax in accordance with the assessment—a release authority in respect of the amount;

   2. (b)

      if the person is liable to pay an amount of *excess non‑concessional contributions tax in accordance with the assessment—a release authority in respect of the amount.

2. (2)

   A release authority must:

   1. (a)

      state the amount of *excess concessional contributions tax or *excess non‑concessional contributions tax (whichever is applicable) that the person is liable to pay as a result of the assessment; and

   2. (b)

      be dated; and

   3. (c)

      contain any other information that the Commissioner considers relevant.

292‑410Giving a release authority to a superannuation provider

1. (1)

   The person may give the release authority to a *superannuation provider that holds a *superannuation interest (other than a *defined benefit interest) for the person within 90 days after the date of the release authority.

   Note: Excess contributions tax is due and payable at the end of 21 days after notice of assessment: see section 292‑385.

2. (2)

   However, if:

   1. (a)

      the release authority is for *excess non‑concessional contributions tax; and

   2. (b)

      a *superannuation provider holds a *superannuation interest for the person (other than a *defined benefit interest);

the person must give the release authority to a superannuation provider holding a superannuation interest for the person (other than a defined benefit interest) within 21 days after the date of the release authority.

Note: Section 288‑90 in Schedule 1 to the Taxation Administration Act 1953 provides for an administrative penalty for failing to comply with this subsection.

1. (3)

   Subsection (4) applies if:

   1. (a)

      the release authority is for *excess non‑concessional contributions tax; and

   2. (b)

      a *superannuation provider holds a *superannuation interest for the person (other than a *defined benefit interest); and

   3. (c)

      any of the following conditions are satisfied:

      1. (i)

         the person does not give the release authority to a superannuation provider holding a superannuation interest for the person within 90 days after the date of the release authority in accordance with subsection (1);

      2. (ii)

         if the person has made one or more requests as mentioned in paragraph 292‑415(1)(a) in relation to the release authority within 90 days after the date of the release authority—the total of the amounts (if any) paid by superannuation providers in relation to the release authority falls short of the amount of the excess non‑concessional contributions tax stated in the release authority;

      3. (iii)

         the total of the *values of every superannuation interest (other than a defined benefit interest) held for the person by a superannuation provider to which the release authority is given falls short of the amount of the excess non‑concessional contributions tax stated in the release authority.

2. (4)

   If the conditions in subsection (3) are satisfied, the Commissioner may give the release authority to one or more *superannuation providers that hold a *superannuation interest (other than a *defined benefit interest) for the person.

292‑415Superannuation provider given release authority must pay amount

1. (1)

   A *superannuation provider that has been given a release authority in accordance with section 292‑410 must pay to the person or the Commissioner within 30 days after receiving the release authority the least of the following amounts:

   1. (a)

      if the person or Commissioner requests the superannuation provider, in writing, to pay a specified amount in relation to the release authority—that amount;

   2. (b)

      the amount of *excess concessional contributions tax or *excess non‑concessional contributions tax (whichever is applicable) stated in the release authority;

   3. (c)

      the sum of the *values of every *superannuation interest (other than a *defined benefit interest) held by the superannuation provider for the person.

      Note 1: Section 288‑95 in Schedule 1 to the Taxation Administration Act 1953 provides for an administrative penalty for failing to comply with this subsection.

      Note 2: Section 288‑100 in Schedule 1 to the Taxation Administration Act 1953 provides that the person giving the release authority to the superannuation provider can be liable to an administrative penalty if excess amounts are paid in relation to the release authority.

      Note 3: For reporting obligations on the superannuation provider in these circumstances, see section 390‑65 in Schedule 1 to the Taxation Administration Act 1953.

      Note 4: For the taxation treatment of the payment, see section 304‑15.

2. (2)

   The payment must be made out of one or more *superannuation interests (other than a *defined benefit interest) held by the *superannuation provider for the person.

3. (3)

   If the payment is made to the Commissioner, it is taken to be made in satisfaction (in whole or part) of the person’s liability for *excess concessional contributions tax or *excess non‑concessional contributions tax stated in the release authority.

4. (4)

   If:

   1. (a)

      the release authority was given by the Commissioner in accordance with subsection 292‑410(4); and

   2. (b)

      the payment is made to the Commissioner;

the Commissioner must, as soon as possible, give the person written notice that the payment has been made.

1. (5)

   Section 307‑125 (the proportioning rule) does not apply to a payment made as required under this section.

Subdivision 292‑H—Other provisions

Table of sections

292‑465 Commissioner’s discretion to disregard contributions etc. in relation to a financial year

292‑470 Power of Commissioner to obtain information

292‑465Commissioner’s discretion to disregard contributions etc. in relation to a financial year

1. (1)

   If you make an application in accordance with subsection (2), the Commissioner may make a written determination that, for the purposes of this Division:

   1. (a)

      all or part of your *concessional contributions for a *financial year is to be disregarded, or allocated instead for the purposes of another financial year specified in the determination; and

   2. (b)

      all or part of your *non‑concessional contributions for a financial year is to be disregarded, or allocated instead for the purposes of another financial year specified in the determination.

2. (2)

   You may apply to the Commissioner in the *approved form for a determination under subsection (1). The application can only be made within:

   1. (a)

      the period:

      1. (i)

         starting on the day you receive an *excess contributions tax assessment for the *financial year; and

      2. (ii)

         ending 60 days after that day; or

   2. (b)

      a longer period allowed by the Commissioner.

3. (3)

   The Commissioner may make the determination only if he or she considers that:

   1. (a)

      there are special circumstances; and

   2. (b)

      making the determination is consistent with the object of this Division.

4. (4)

   In making the determination the Commissioner may have regard to the matters in subsections (5) and (6) and any other relevant matters.

5. (5)

   The Commissioner may have regard to whether a contribution made in the relevant *financial year would more appropriately be allocated towards another financial year instead.

6. (6)

   The Commissioner may have regard to whether it was reasonably foreseeable, when a relevant contribution was made, that you would have *excess concessional contributions or *excess non‑concessional contributions for the relevant *financial year, and in particular:

   1. (a)

      if the relevant contribution is made in respect of you by another person—the terms of any agreement or arrangement between you and that person as to the amount and timing of the contribution; and

   2. (b)

      the extent to which you had control over the making of the contribution.

7. (7)

   The Commissioner must give you a copy of the determination.

292‑470Power of Commissioner to obtain information

Section 264 of the Income Tax Assessment Act 1936 applies for the purposes of this Division as if the reference in paragraph (1)(b) of that section to a person’s income or assessment were a reference to a matter relevant to the administration or operation of this Division.

Note: For superannuation providers’ reporting obligations see Division 390 in Schedule 1 to the Taxation Administration Act 1953.

Division 295—Taxation of superannuation entities

Table of Subdivisions

Guide to Division 295

295‑A Provisions of general operation

295‑B Modifications of provisions of this Act

295‑C Contributions included

295‑D Contributions excluded

295‑E Other income amounts

295‑F Exempt income

295‑G Deductions

295‑H Components of taxable income

295‑I No‑TFN contributions

295‑J Tax offset for no‑TFN contributions income (TFN quoted within 4 years)

Guide to Division 295

295‑1What this Division is about

This Division sets out special rules about the taxation of superannuation entities.

It sets out how to calculate the taxable income of those entities and to identify the components of that taxable income for the purpose of applying the appropriate tax rate.

It sets out how to calculate the no‑TFN contributions income of relevant entities for an income year for the purpose of applying the appropriate tax rate.

Subdivision 295‑A—Provisions of general operation

Table of sections

295‑5 Entities to which Division applies

295‑10 How to work out the tax payable by superannuation entities

295‑15 Division does not impose a tax on property of a State

295‑20 Exempting laws ineffective

295‑25 Assessments on basis of anticipated SIS Act notice

295‑30 Effect of revocation etc. of SIS Act notices

295‑35 Acronyms used in tables

295‑5Entities to which Division applies

1. (1)

   This Division applies to these entities:

   1. (a)

      a *complying superannuation fund;

   2. (b)

      a *non‑complying superannuation fund;

   3. (c)

      a *complying approved deposit fund;

   4. (d)

      a *non‑complying approved deposit fund;

   5. (e)

      a *pooled superannuation trust;

whether they are established by an *Australian law, by a public authority constituted by or under such a law or in some other way.

1. (2)

   The *superannuation provider in relation to an entity referred to in paragraph (1)(a) to (d) is liable to pay tax on the taxable income of the entity.

   Note: A superannuation provider in relation to an entity referred to in paragraphs (1)(a) and (b) or in relation to an RSA is liable to pay tax on the no‑TFN contributions income of the entity: see section 295‑605.

2. (3)

   The trustee of a *pooled superannuation trust is liable to pay tax on the taxable income of the trust.

3. (4)

   This Division also applies to an *RSA provider that is not a *life insurance company.

   Note: Division 320 deals with RSA providers that are life insurance companies.

295‑10How to work out the tax payable by superannuation entities

1. (1)

   Use this method for *superannuation funds, *approved deposit funds and *pooled superannuation trusts:

Method statement

Step 1. For a *superannuation fund, work out the *no‑TFN contributions income. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to that income.

Step 2. Work out the entity’s assessable income and deductions taking account of the special rules in this Division. The special rules modify some provisions of this Act. They also include amounts in assessable income, allow deductions and exempt amounts from income tax.

Step 3. Work out the entity’s taxable income as if its trustee:

1. (a)

   were an Australian resident (except where paragraph (b) applies); or

2. (b)

   for a *non‑complying superannuation fund that is a *foreign superannuation fund for the income year—were not an Australian resident.

Step 4. Work out the *low tax component and *non‑arm’s length component of the taxable income of a *complying superannuation fund, *complying approved deposit fund or *pooled superannuation trust.

Step 5. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to the components, or to the taxable income of a *non‑complying superannuation fund or *non‑complying approved deposit fund.

Step 6. Subtract the entity’s *tax offsets from the step 5 amount or, for a *superannuation fund, from the sum of the fund’s step 1 and step 5 amounts.

1. (2)

   Use this method for *RSA providers:

Method statement

Step 1. Work out the entity’s *no‑TFN contributions income. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to that income.

Step 2. Work out the entity’s assessable income and deductions taking account of the special rules in this Division.

Step 3. Work out the *RSA component and *standard component of the entity’s taxable income.

Step 4. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to the components. The *RSA component is taxed at a concessional rate.

Step 5. Subtract the entity’s *tax offsets from the sum of the entity’s step 1 and step 4 amounts.

295‑15Division does not impose a tax on property of a State

This Division does not impose a tax on property of any kind belonging to a State (within the meaning of section 114 of the Constitution).

295‑20Exempting laws ineffective

A *Commonwealth law (other than this Act) does not have the effect of exempting the trustee of an entity to which this Division applies from the liability to pay tax unless it does so expressly.

295‑25Assessments on basis of anticipated SIS Act notice

1. (1)

   The Commissioner may make an assessment for a fund or trust that is not a *complying superannuation fund, *complying approved deposit fund or *pooled superannuation trust for the income year as if it were such an entity if the Commissioner considers it likely that a notice will be given under section 40 of the Superannuation Industry (Supervision) Act 1993 having the effect that it will become such an entity.

2. (2)

   However, the grounds for making an assessment under subsection (1) are taken never to have existed if:

   1. (a)

      the Commissioner becomes satisfied that the notice will not be given; or

   2. (b)

      *APRA does not receive the documents referred to in subsection 36(1) of the Superannuation Industry (Supervision) Act 1993 about the fund or trust before the end of 12 months after the assessment is made.

295‑30Effect of revocation etc. of SIS Act notices

This Division has effect as if a notice given under section 342 of the Superannuation Industry (Supervision) Act 1993 (about pre‑1 July 88 funding credits) or under regulations made for the purposes of that section had never been given if:

1. (a)

   the notice is revoked; or

2. (b)

   the decision to give the notice is set aside.

295‑35Acronyms used in tables

In tables in this Division, these acronyms are used for these entities:

Acronyms used in tables
Item	Entity	Acronym
1	*Complying superannuation fund	CSF
2	*Non‑complying superannuation fund	N‑CSF
3	*Complying approved deposit fund	CADF
4	*Non‑complying approved deposit fund	N‑CADF
5	*Pooled superannuation trust	PST

Subdivision 295‑B—Modifications of provisions of this Act

Table of sections

295‑85 CGT to be primary code for calculating gains or losses

295‑90 CGT rules for pre‑30 June 1988 assets

295‑95 Deductions related to contributions

295‑100 Deductions for investing in PSTs and life policies

295‑105 Distributions to PST unitholders

295‑85CGT to be primary code for calculating gains or losses

1. (1)

   The modifications in subsection (2) apply if a *CGT event happens involving a *CGT asset that was owned by one of these entities just before the time of the event:

   1. (a)

      a *complying superannuation fund;

   2. (b)

      a *complying approved deposit fund;

   3. (c)

      a *pooled superannuation trust.

2. (2)

   These provisions do not apply to the *CGT event:

   1. (a)

      sections 6‑5 (about *ordinary income), 8‑1 (about amounts you can deduct), and 15‑15 and 25‑40 (about profit‑making undertakings or plans);

   2. (b)

      sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit‑making undertakings or schemes).

Exceptions

1. (3)

   The provisions referred to in subsection (2) can apply to the *CGT event if:

   1. (a)

      any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or

   2. (b)

      the *CGT asset is one of these:

      1. (i)

         debenture stock, a bond, *debenture, certificate of entitlement, bill of exchange, promissory note or other security;

      2. (ii)

         a deposit with a bank, building society or other financial institution;

      3. (iii)

         a loan (secured or not);

      4. (iv)

         some other contract under which an entity is liable to pay an amount (whether the liability is secured or not).

2. (4)

   The provisions referred to in subsection (2) can also apply to the *CGT event if a *capital gain or *capital loss from the event is disregarded because of one of the provisions in this table:

Where gain or loss disregarded because of CGT provision
Item	Provision	Brief description
1	Paragraph 104‑15(4)(a)	Title in a CGT asset does not pass when a hire purchase or similar agreement ends
2	Section 118‑5	Cars, motor cycles and valour decorations
3	Section 118‑10	Collectables and personal use assets
4	Section 118‑13	Shares in a PDF
5	Section 118‑25	Trading stock
6	Section 118‑30	Film copyright
7	Section 118‑35	Research and development
8	Section 118‑55	Foreign currency hedging gains and losses
9	Section 118‑60	Certain gifts
10	Section 118‑300	Insurance policies
11	Section 118‑305	Superannuation
12	Section 118‑310	CGT event happens to right to, or part of, RSA

295‑90CGT rules for pre‑30 June 1988 assets

1. (1)

   This section applies to the trustee of:

   1. (a)

      a *complying superannuation fund; or

   2. (b)

      a *complying approved deposit fund; or

   3. (c)

      a *pooled superannuation trust.

2. (2)

   Parts 3‑1 and 3‑3 (about capital gains and losses) apply to a *CGT asset that:

   1. (a)

      the trustee or a former trustee owned at the end of 30 June 1988; and

   2. (b)

      the trustee owned at the commencement of this section;

as if the trustee had *acquired the asset on 30 June 1988.

1. (3)

   Subsection (2) does not affect how to work out the asset’s *cost base or *reduced cost base.

   Note: See Subdivision 295‑B of the Income Tax (Transitional Provisions) Act 1997 for rules about cost base.

2. (4)

   Subsection 104‑30(5) applies to an option granted by the trustee as if the reference in that subsection to 20 September 1985 were a reference to 1 July 1988.

295‑95Deductions related to contributions

1. (1)

   Provisions of this Act about deducting amounts apply to these entities as if all contributions made to them were included in their assessable income:

   1. (a)

      *complying superannuation funds;

   2. (b)

      *non‑complying superannuation funds that are *Australian superannuation funds;

   3. (c)

      *complying approved deposit funds;

   4. (d)

      *non‑complying approved deposit funds;

   5. (e)

      *RSA providers.

      Note 1: This means that the entities can deduct amounts incurred in obtaining the contributions.

      Note 2: Examples of contributions that are not assessable are:

      1. •

         contributions which the contributor cannot deduct;

      2. •

         contributions excluded from assessable income under Subdivision 295‑D.

2. (2)

   A *superannuation fund is an Australian superannuation fund at a time, and for the income year in which that time occurs, if:

   1. (a)

      the fund was established in Australia, or any asset of the fund is situated in Australia at that time; and

   2. (b)

      at that time, the central management and control of the fund is ordinarily in Australia; and

   3. (c)

      at that time either the fund had no member covered by subsection (3) (an active member) or at least 50% of:

      1. (i)

         the total *market value of the fund’s assets attributable to *superannuation interests held by active members; or

      2. (ii)

         the sum of the amounts that would be payable to or in respect of active members if they voluntarily ceased to be members;

   is attributable to superannuation interests held by active members who are Australian residents.

3. (3)

   A member is covered by this subsection at a time if the member is:

   1. (a)

      a contributor to the fund at that time; or

   2. (b)

      an individual on whose behalf contributions have been made, other than an individual:

      1. (i)

         who is a foreign resident; and

      2. (ii)

         who is not a contributor at that time; and

      3. (iii)

         for whom contributions made to the fund on the individual’s behalf after the individual became a foreign resident are only payments in respect of a time when the individual was an Australian resident.

295‑100Deductions for investing in PSTs and life policies

1. (1)

   Provisions of this Act about deducting amounts apply to *complying superannuation funds and *complying approved deposit funds as if *ordinary income and *statutory income received from these investments were included in their assessable income:

   1. (a)

      units in a *pooled superannuation trust;

   2. (b)

      *life insurance policies issued by a *life insurance company;

   3. (c)

      an interest in a trust whose assets consist only of life insurance policies issued by a life insurance company.

1. 1. (a)

      it has ceased being a self managed superannuation fund for the purposes of the rest of this Act; and

   2. (b)

      the trustee of the fund is not an RSE licensee.

11

Paragraph 17A(1)(f)

Omit “fund.”, substitute “fund;”.

12

At the end of subsection 17A(1)

Add:

1. (g)

   if the trustee of the fund is a body corporate—no director of the body corporate receives any remuneration from the fund or from any person (including the body corporate) for any duties or services performed by the director in relation to the fund.

13

Paragraph 17A(2)(c)

Omit “fund.”, substitute “fund;”.

14

At the end of subsection 17A(2)

Add:

1. (d)

   if the trustee of the fund is a body corporate—no director of the body corporate receives any remuneration from the fund or from any person (including the body corporate) for any duties or services performed by the director in relation to the fund.

15

At the end of subsection 17A(10)

Add “or a director of a body corporate that is a trustee of a self managed superannuation fund”.

16

After paragraph 38A(aa)

Insert:

1. (ab)

   for a superannuation entity that is a self managed superannuation fund—any of the following provisions in Schedule 1 to the Taxation Administration Act 1953:

   1. (i)

      section 288‑85;

   2. (ii)

      Division 390; or

17

Paragraph 39(1)(b)

Omit “provision.”, substitute “provision; or”.

18

At the end of subsection 39(1)

Add:

1. (c)

   a contravention of a provision mentioned in paragraph 38A(ab).

19

After subsection 39(1A)

Insert:

1. (1B)

   To avoid doubt, for the purposes of this Division, treat conduct giving rise to an administrative penalty under section 288‑85 in Schedule 1 to the Taxation Administration Act 1953 as a contravention of that section.

20

Paragraph 129(3)(b)

Omit “if the”, substitute “if the superannuation entity is not a self managed superannuation fund and the”.

21

Paragraph 129(3)(b)

Omit “writing.”, substitute “writing; and”.

22

At the end of subsection 129(3)

Add:

1. (c)

   if the superannuation entity is a self managed superannuation fund and the matter is specified in the approved form—tell the Regulator about the matter in the approved form.

   Note: For specification by class, see subsection 46(3) of the Acts Interpretation Act 1901.

23

After subsection 129(3)

Insert:

1. (3AA)

   To avoid doubt, for the purposes of paragraph (3)(c), the approved form may specify matters by reference to a class or classes of matters.

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

24

Section 15DAA

Insert:

general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.

25

Section 15DAA (definition of late payment penalty)

Repeal the definition.

26

Section 15DC

Repeal the section, substitute:

15DCGeneral interest charge

If an amount of levy payable by a person remains unpaid after the time by which it is due and payable, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:

1. (a)

   starts at the beginning of the day on which the amount of levy was due to be paid; and

2. (b)

   ends at the end of the last day on which, at the end of the day, any of the following remains unpaid:

   1. (i)

      an amount of levy;

   2. (ii)

      general interest charge on an amount of levy.

   Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.

27

Section 15DD

Repeal the section, substitute:

15DDRecovery of levy

Levy that is due and payable may be recovered by the Commonwealth as a debt due to the Commonwealth.

Note: The heading to section 15DD is altered by omitting “and late payment penalty”.

28

Section 15DE

Omit “and late payment penalty are”, substitute “is”.

29

Section 15DE (Note)

Omit “and late payment penalty”.

30

Section 15DF

Repeal the section, substitute:

15DFRemission of levy

The Commissioner of Taxation may remit the whole or a part of an amount of levy.

Taxation Administration Act 1953

31

Subsection 2(1) (definition of taxation law)

Repeal the definition, substitute:

taxation law has the meaning given by the Income Tax Assessment Act 1997.

32

Transitional—meaning of taxation law

In determining the meaning of taxation law in the Taxation Administration Act 1953 before the commencement of this item, the amendments made by this Schedule are to be disregarded.

33

Subsection 8AAB(5) (after table item 13)

Insert:

13A 15DC Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

34

At the end of section 286‑75 in Schedule 1

Add:

1. (5)

   Subsection (6) applies if:

   1. (a)

      an entity is liable to an administrative penalty under subsection (1) or (2A) as the *superannuation provider in relation to a *self managed superannuation fund; and

   2. (b)

      the entity is a body corporate.

2. (6)

   The directors of the body corporate at the time it becomes liable to the penalty are jointly and severally liable to pay the amount of the *tax‑related liability in respect of the penalty.

   Note: See section 265‑45 for rules on joint liability.

35

After section 288‑80 in Schedule 1

Insert:

288‑85False or misleading statements in approved forms given by trustee of self managed superannuation fund etc.

1. (1)

   This section applies to the trustee of:

   1. (a)

      a *self managed superannuation fund; or

   2. (b)

      a fund that is treated as a self managed superannuation fund under subsection 10(4) of the Superannuation Industry (Supervision) Act 1993).

2. (2)

   The trustee is liable to an administrative penalty of 20 penalty units if:

   1. (a)

      the trustee gives the Commissioner or another entity a statement in an *approved form in relation to the fund; and

   2. (b)

      the statement is false or misleading in a material particular, whether because of things in it or omitted from it.

3. (3)

   Subsection (4) applies if:

   1. (a)

      a trustee is liable to an administrative penalty under subsection (2); and

   2. (b)

      the trustee is a body corporate.

4. (4)

   The directors of the body corporate at the time it becomes liable to the penalty are jointly and severally liable to pay the amount of the *tax‑related liability in respect of the penalty.

   Note: See section 265‑45 for rules on joint liability.

36

Application

(1) The amendments made by this Schedule apply to the 2007‑2008 income year and later years.

(2) Despite subitem (1), items 1, 2, 3, 4, 5, 34 and 35 of this Schedule apply on and after 1 July 2007.

Schedule 6Government Co‑contribution for Low Income Earners

Superannuation (Government Co‑contribution for Low Income Earners) Act 2003

1

Paragraph 6(1)(b)

Repeal the paragraph, substitute:

1. (b)

   10% or more of the person’s total income for the income year is attributable to either or both of the following:

   1. (i)

      the person engaging in activities covered under subsection (2);

   2. (ii)

      the person carrying on a business (within the meaning of the Income Tax Assessment Act 1997); and

2

Subsection 6(2)

Repeal the subsection, substitute:

1. (2)

   A person engages in activities covered under this subsection if:

   1. (a)

      the person engages in any of these activities in the income year in which the person makes the contribution:

      1. (i)

         holding an office or appointment;

      2. (ii)

         performing functions or duties;

      3. (iii)

         engaging in work;

      4. (iv)

         doing acts or things; and

   2. (b)

      the activities result in the person being treated as an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (assuming that subsection 12(11) of that Act had not been enacted).

3

Section 7

Before “A contribution”, insert “(1)”.

4

Subparagraph 7(b)(ii)

Omit “person.”, substitute “person; and”.

5

At the end of section 7

Add:

1. (c)

   the contribution is not any of the following:

   1. (i)

      a roll‑over superannuation benefit (within the meaning of the Income Tax Assessment Act 1997);

   2. (ii)

      a superannuation lump sum that is paid from a foreign superannuation fund (within the meaning of the Income Tax Assessment Act 1997);

   3. (iii)

      a directed termination payment (within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997).

6

At the end of section 7

Add:

1. (2)

   However, the contribution is an eligible personal superannuation contribution only to the extent that the Commissioner has not allowed the contribution as a deduction for the person.

7

Section 8

Before “The”, insert “(1)”.

8

At the end of section 8

Add:

1. (2)

   However, the person’s total income for the income year is reduced by amounts (if any) for which the person is entitled to a deduction as a result of carrying on a business (within the meaning of the Income Tax Assessment Act 1997).

2. (3)

   Subsection (2) does not apply for the purposes of paragraph 6(1)(b).

9

Application

The amendments made by this Schedule apply in relation to income years starting on or after 1 July 2007.

Schedule 7Portability and unclaimed money

Retirement Savings Accounts Act 1997

1

Section 50

Repeal the section.

Superannuation (Unclaimed Money and Lost Members) Act 1999

2

Section 7

Omit “immediately payable”.

3

Paragraph 12(1)(b)

Repeal the paragraph.

4

Paragraph 12(1)(d)

Repeal the paragraph, substitute:

1. (d)

   after the end of a period of 5 years since the superannuation provider last had contact with the member, the provider has been unable to contact the member again after making reasonable efforts.

5

Subsection 12(1) (note)

Repeal the note.

6

Subsection 13(1)

Repeal the subsection, substitute:

1. (1)

   A superannuation provider in relation to a fund must make reasonable efforts to contact a member of the fund if:

   1. (a)

      paragraphs 12(1)(a) and (c) are satisfied in relation to the member; and

   2. (b)

      5 years have passed since the provider last had contact with the member.

Note: The heading to section 13 is amended by omitting “to ensure that the member receives the benefit” and substituting “to contact the member or to ensure that a benefit is received”.

7

Application

The amendments made by this Schedule apply on and after 1 July 2007.

Schedule 8Social Security Act 1991Part 1Amendments commencing 20 September 2007

1

Before paragraph 9A(1)(a)

Insert:

1. (aa)

   subject to subsection (1AA), the income stream’s commencement day happens before 20 September 2007; and

2

After subsection 9A(1A)

Insert:

Defined benefit income streams

1. (1AA)

   Paragraph (1)(aa) does not apply if the income stream is a defined benefit income stream.

3

Subsection 9A(5)

Omit “that does not meet the requirements of subsection (2)”.

4

After subsection 9A(5)

Insert:

1. (5A)

   To avoid doubt, a determination under subsection (5) may be made in respect of an income stream regardless of the income stream’s commencement day.

2. (5B)

   A determination under subsection (5) is not a legislative instrument.

5

Subsection 9B(1)

Repeal the subsection, substitute:

1. (1)

   An income stream provided to a person is also an asset‑test exempt income stream for the purposes of this Act if:

   1. (a)

      the following criteria are satisfied:

      1. (i)

         the income stream’s commencement day happens before 20 September 2007;

      2. (ii)

         subsection (1A) applies; or

   2. (b)

      subsection (1B) applies.

6

Subsection 9B(4)

Omit “that does not meet the requirements of subsection (2)”.

7

After subsection 9B(4)

Insert:

1. (4A)

   To avoid doubt, a determination under subsection (4) may be made in respect of an income stream regardless of the income stream’s commencement day.

2. (4B)

   A determination under subsection (4) is not a legislative instrument.

8

Subparagraph 9BA(1)(a)(i)

Omit “on or after 20 September 2004”, substitute “during the period from 20 September 2004 to 19 September 2007 (both dates inclusive)”.

9

Subsection 9BA(11)

Omit “that does not meet the requirements of subsection (2)”.

10

After subsection 9BA(11)

Insert:

1. (11A)

   To avoid doubt, a determination under subsection (11) may be made in respect of an income stream regardless of the income stream’s commencement day.

2. (11B)

   A determination under subsection (11) is not a legislative instrument.

11

Point 1064‑G4 (cell at table item 1 of Table G‑2, column 3)

Repeal the cell, substitute:

12

Point 1064‑G4 (cell at table item 2 of Table G‑2, column 3)

Repeal the cell, substitute:

13

Point 1064‑G4 (cell at table item 3 of Table G‑2, column 3)

Repeal the cell, substitute:

14

Point 1066‑G4 (formula)

Repeal the formula, substitute:

15

Point 1066A‑H4 (cell at table item 1 of Table H‑2, column 3)

Repeal the cell, substitute:

16

Point 1066A‑H4 (cell at table item 2 of Table H‑2, column 3)

Repeal the cell, substitute:

17

Point 1066A‑H4 (cell at table item 3 of Table H‑2, column 3)

Repeal the cell, substitute:

18

Subsection 1118(1A) (definition of partially asset‑test exempt income stream)

Repeal the definition, substitute:

partially asset‑test exempt income stream means:

1. (a)

   an asset‑test exempt income stream that:

   1. (i)

      is an income stream (other than a defined benefit income stream) covered by subsection 9A(1) or (1A), 9B(1) or 9BA(1); and

   2. (ii)

      has a commencement day during the period from 20 September 2004 to 19 September 2007 (both dates inclusive); and

   3. (iii)

      is not covered by principles (if any) determined for the purposes of this subparagraph, by legislative instrument, by the Secretary; or

2. (b)

   an income stream that:

   1. (i)

      has a commencement day happening on or after 20 September 2007; and

   2. (ii)

      is covered by principles determined for the purposes of this subparagraph, by legislative instrument, by the Secretary.

19

Paragraph 1130(3)(d)

Omit “$19.50”, substitute “$9.75”.

20

Transitional arrangements

(1) If:

1. (a)

   a person is not receiving a particular relevant social security payment immediately before 20 September 2007; and

2. (b)

   the person makes a claim for the relevant social security payment during the claim period;

then the person’s start day in relation to the relevant social security payment is the earlier of:

1. (c)

   the later of:

   1. (i)

      20 September 2007; and

   2. (ii)

      the day on which the relevant social security payment first becomes payable to the person; and

2. (d)

   the day worked out in accordance with Schedule 2 to the Social Security (Administration) Act 1999 as the start day in relation to the relevant social security payment.

(2) If:

1. (a)

   a person is not receiving a particular relevant social security payment immediately before 20 September 2007; and

2. (b)

   the person makes a claim for the relevant social security payment during the claim period; and

3. (c)

   on the day on which the claim is made:

   1. (i)

      the person is not qualified for the relevant social security payment; or

   2. (ii)

      the payment is not payable to the person; and

4. (d)

   the person was qualified for the relevant social security payment, and the relevant social security payment was payable to the person, during a period (the relevant period) that fell before that day and within the claim period;

then:

1. (e)

   the Secretary may grant the claim; and

2. (f)

   the person’s start day in relation to the relevant social security payment is the earlier of:

   1. (i)

      the first day of the relevant period; and

   2. (ii)

      the day worked out in accordance with Schedule 2 to the Social Security (Administration) Act 1999 as the start day in relation to the relevant social security payment.

(3) In this item:

claim period means the period commencing on 20 September 2007 and ending on 20 December 2007 (both dates inclusive).

relevant social security payment means one of the following social security payments:

1. (a)

   an age pension;

2. (b)

   a disability support pension;

3. (c)

   a wife pension;

4. (d)

   a carer payment;

5. (e)

   a widow B pension;

6. (f)

   a bereavement allowance.

Part 2Amendment commencing 1 July 2007

1. 21

   Subsection 9(1) (definition of deductible amount)

   Repeal the definition, substitute:

   deductible amount, in relation to a defined benefit income stream for a year, means the sum of the amounts that are the tax free components (worked out under Subdivision 307‑C of the Income Tax Assessment Act 1997 or, if applicable, section 307‑125 of the Income Tax (Transitional Provisions) Act 1997) of the payments received from the defined benefit income stream during the year.

Schedule 9Veterans’ Entitlements Act 1986Part 1Amendments commencing 20 September 2007

1

Before paragraph 5JA(1)(a)

Insert:

1. (aa)

   subject to subsection (1AA), the income stream’s commencement day happens before 20 September 2007; and

2

After subsection 5JA(1A)

Insert:

Defined benefit income streams

1. (1AA)

   Paragraph (1)(aa) does not apply if the income stream is a defined benefit income stream.

3

Subsection 5JA(5)

Omit “that does not meet the requirements of subsection (2)”.

4

After subsection 5JA(5)

Insert:

1. (5A)

   To avoid doubt, a determination under subsection (5) may be made in respect of an income stream regardless of the income stream’s commencement day.

2. (5B)

   A determination under subsection (5) is not a legislative instrument.

5

Subsection 5JB(1)

Repeal the subsection, substitute:

1. (1)

   An income stream provided to a person is also an asset‑test exempt income stream for the purposes of this Act if:

   1. (a)

      the following criteria are satisfied:

      1. (i)

         the income stream’s commencement day happens before 20 September 2007;

      2. (ii)

         subsection (1A) applies; or

   2. (b)

      subsection (1B) applies.

6

Subsection 5JB(4)

Omit “that does not meet the requirements of subsection (2)”.

7

After subsection 5JB(4)

Insert:

1. (4A)

   To avoid doubt, a determination under subsection (4) may be made in respect of an income stream regardless of the income stream’s commencement day.

2. (4B)

   A determination under subsection (4) is not a legislative instrument.

8

Subparagraph 5JBA(1)(a)(i)

Omit “on or after 20 September 2004”, substitute “during the period from 20 September 2004 to 19 September 2007 (both dates inclusive)”.

9

Subsection 5JBA(11)

Omit “that does not meet the requirements of subsection (2)”.

10

After subsection 5JBA(11)

Insert:

1. (11A)

   To avoid doubt, a determination under subsection (11) may be made in respect of an income stream regardless of the income stream’s commencement day.

2. (11B)

   A determination under subsection (11) is not a legislative instrument.

11

Subsection 52(1AA) (definition of partially asset‑test exempt income stream)

Repeal the definition, substitute:

partially asset‑test exempt income stream means:

1. (a)

   an asset‑test exempt income stream that:

   1. (i)

      is an income stream (other than a defined benefit income stream) covered by subsection 5JA(1) or (1A), 5JB(1) or 5JBA(1); and

   2. (ii)

      has a commencement day during the period from 20 September 2004 to 19 September 2007 (both dates inclusive); and

   3. (iii)

      is not covered by principles (if any) determined for the purposes of this subparagraph, by legislative instrument, by the Commission; or

2. (b)

   an income stream that:

   1. (i)

      has a commencement day happening on or after 20 September 2007; and

   2. (ii)

      is covered by principles determined for the purposes of this subparagraph, by legislative instrument, by the Commission.

12

Subsection 52(1AB)

Repeal the subsection, substitute:

1. (1AB)

   The Commission may determine principles for the purposes of subparagraph (a)(iii) of the definition of partially asset‑test exempt income stream in subsection (1AA).

2. (1AC)

   The Commission may determine principles for the purposes of subparagraph (b)(ii) of the definition of partially asset‑test exempt income stream in subsection (1AA).

13

Paragraph 52Z(3)(d)

Omit “$19.50”, substitute “$9.75”.

14

Subpoint SCH6‑F4(1) of Schedule 6 (formula)

Repeal the formula, substitute:

15

Transitional arrangements

(1) If:

1. (a)

   a person is not receiving a particular relevant payment immediately before 20 September 2007; and

2. (b)

   the person makes a claim for the relevant payment during the claim period;

then:

1. (c)

   if the relevant payment is an age service pension—the day on which the determination under section 36L of the Veterans’ Entitlements Act 1986 in relation to that pension takes effect is the earlier of:

   1. (i)

      the transitional day for the person in relation to the relevant payment; and

   2. (ii)

      the day on which the determination would take effect under section 36M of that Act, but for this item; and

2. (d)

   if the relevant payment is an invalidity service pension—the day on which the determination under section 37L of the Veterans’ Entitlements Act 1986 in relation to that pension takes effect is the earlier of:

   1. (i)

      the transitional day for the person in relation to the relevant payment; and

   2. (ii)

      the day on which the determination would take effect under section 37M of that Act, but for this item; and

3. (e)

   if the relevant payment is a partner service pension—the day on which the determination under section 38L of the Veterans’ Entitlements Act 1986 in relation to that pension takes effect is the earlier of:

   1. (i)

      the transitional day for the person in relation to the relevant payment; and

   2. (ii)

      the day on which the determination would take effect under section 38M of that Act, but for this item; and

1. (f)

   if the relevant payment is income support supplement—the day on which the determination under section 45Q of the Veterans’ Entitlements Act 1986 in relation to the income support supplement takes effect is the earlier of:

   1. (i)

      the transitional day for the person in relation to the relevant payment; and

   2. (ii)

      the day on which the determination would take effect under section 45R of that Act, but for this item.

(2) If:

1. (a)

   a person is not receiving a particular relevant payment immediately before 20 September 2007; and

2. (b)

   the person makes a claim for the relevant payment during the claim period; and

3. (c)

   on the day on which the claim is made:

   1. (i)

      the person is not eligible to receive the relevant payment; or

   2. (ii)

      the relevant payment is not payable to the person; and

4. (d)

   the person was eligible to receive the relevant payment, and the relevant payment was payable to the person, during a period (the relevant period) that fell before that day and within the claim period;

then:

1. (e)

   the Commission may make a determination granting the claim; and

2. (f)

   the day on which the determination under section 36L, 37L, 38L or 45Q of the Veterans’ Entitlements Act 1986 takes effect (despite sections 36M, 37M, 38M and 45R of that Act) is the earlier of:

   1. (i)

      the first day of the relevant period; and

   2. (ii)

      the day on which the determination would take effect under section 36M, 37M, 38M or 45R of that Act but for this item.

(3) In this item:

claim period means the period commencing on 20 September 2007 and ending on 20 December 2007 (both dates inclusive).

relevant payment means one of the following:

1. (a)

   a service pension;

2. (b)

   income support supplement.

transitional day, for a person in relation to a relevant payment, means the day that is the later of:

1. (a)

   20 September 2007; and

2. (b)

   the day on which the relevant payment first becomes payable to the person.

Part 2Amendment commencing 1 July 2007

1. 16

   Subsection 5J(1) (definition of deductible amount)

   Repeal the definition, substitute:

   deductible amount, in relation to a defined benefit income stream for a year, means the sum of the amounts that are the tax free components (worked out under Subdivision 307‑C of the Income Tax Assessment Act 1997 or, if applicable, section 307‑125 of the Income Tax (Transitional Provisions) Act 1997) of the payments received from the defined benefit income stream during the year.

Schedule 10Definitions and related amendments

Income Tax Assessment Act 1997

1

Subsection 67‑25(1A)

Omit “*non‑complying ADF”, substitute “*non‑complying approved deposit fund”.

2

Subsection 703‑20(2) (table item 7)

Omit “non‑complying ADF or non‑complying superannuation fund (as those terms are defined in section 267 of the Income Tax Assessment Act 1936)”, substitute “*non‑complying approved deposit fund or a *non‑complying superannuation fund”.

3

Subsection 995‑1(1)

Insert:

applicable fund earnings has the meaning given by section 305‑75.

4

Subsection 995‑1(1)

Insert:

approved deposit fund payment has the meaning given by section 307‑5.

5

Subsection 995‑1(1)

Insert:

Australian superannuation fund has the meaning given by section 295‑95.

6

Subsection 995‑1(1)

Insert:

CGT cap amount has the meaning given by section 292‑105.

7

Subsection 995‑1(1)

Insert:

complying superannuation plan means:

1. (a)

   a *complying superannuation fund; or

2. (b)

   a *public sector superannuation scheme that is:

   1. (i)

      a regulated superannuation fund (within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993); or

   2. (ii)

      an exempt public sector superannuation scheme (within the meaning of section 10 of that Act); or

3. (c)

   a *complying approved deposit fund; or

4. (d)

   an *RSA.

8

Subsection 995‑1(1)

Insert:

concessional contributions has the meaning given by sections 292‑25 and 292‑165.

9

Subsection 995‑1(1)

Insert:

concessional contributions cap has the meaning given by section 292‑20.

10

Subsection 995‑1(1) (definition of constitutionally protected fund)

Repeal the definition, substitute:

constitutionally protected fund means a fund that is declared by the regulations to be a constitutionally protected fund.

11

Subsection 995‑1(1)

Insert:

contributions segment has the meaning given by section 307‑220.

12

Subsection 995‑1(1)

Insert:

contributions‑splitting superannuation benefit has the meaning given by the regulations.

13

Subsection 995‑1(1)

Insert:

crystallised pre‑July 83 amount, in relation to a *superannuation interest, means the amount mentioned in paragraph 307‑225(2)(e) in relation to the interest.

14

Subsection 995‑1(1)

Insert:

crystallised segment has the meaning given by section 307‑225.

15

Subsection 995‑1(1)

Insert:

death benefits dependant has the meaning given by section 302‑195.

16

Subsection 995‑1(1)

Insert:

death benefit termination payment has the meaning given by subsection 82‑130(3).

17

Subsection 995‑1(1)

Insert:

defined benefit interest has the meaning given by section 292‑175.

18

Subsection 995‑1(1)

Insert:

departing Australia superannuation payment has the meaning given by section 301‑170.

19

Subsection 995‑1(1)

Insert:

disability superannuation benefit means a *superannuation benefit if:

1. (a)

   the benefit is paid to a person because he or she suffers from ill‑health (whether physical or mental); and

2. (b)

   2 legally qualified medical practitioners have certified that, because of the ill‑health, it is unlikely that the person can ever be *gainfully employed in a capacity for which he or she is reasonably qualified because of education, experience or training.

20

Subsection 995‑1(1)

Insert:

early retirement scheme has the meaning given by section 83‑180.

21

Subsection 995‑1(1)

Insert:

early retirement scheme payment has the meaning given by section 83‑180.

22

Subsection 995‑1(1)

Insert:

element taxed in the fund has the meaning given by section 307‑275.

23

Subsection 995‑1(1)

Insert:

element untaxed in the fund has the meaning given by section 307‑275.

24

Subsection 995‑1(1)

Insert:

employment termination payment has the meaning given by section 82‑130.

25

Subsection 995‑1(1) (definition of endowment policy)

Repeal the definition, substitute:

endowment policy has the meaning given by section 295‑480.

26

Subsection 995‑1(1)

Insert:

ETP cap amount has the meaning given by section 82‑160.

27

Subsection 995‑1(1)

Insert:

excess concessional contributions has the meaning given by section 292‑20.

28

Subsection 995‑1(1)

Insert:

excess concessional contributions tax means tax imposed under the Superannuation (Excess Concessional Contributions Tax) Act 2007.

29

Subsection 995‑1(1)

Insert:

excess contributions tax means:

1. (a)

   *excess concessional contributions tax; or

2. (b)

   *excess non‑concessional contributions tax.

30

Subsection 995‑1(1)

Insert:

excess contributions tax assessment has the meaning given by section 292‑230.

31

Subsection 995‑1(1)

Insert:

excess non‑concessional contributions has the meaning given by section 292‑85.

32

Subsection 995‑1(1)

Insert:

excess non‑concessional contributions tax means tax imposed under the Superannuation (Excess Non‑concessional Contributions Tax) Act 2007.

33

Subsection 995‑1(1)

Insert:

excess untaxed roll‑over amount has the meaning given by section 306‑15.

34

Subsection 995‑1(1)

Insert:

family law superannuation payment has the meaning given by section 307‑5.

35

Subsection 995‑1(1) (definition of foreign superannuation fund)

Repeal the definition, substitute:

foreign superannuation fund:

1. (a)

   a *superannuation fund is a foreign superannuation fund at a time if the fund is not an *Australian superannuation fund at that time; and

2. (b)

   a superannuation fund is a foreign superannuation fund for an income year if the fund is not an Australian superannuation fund for the income year.

36

Subsection 995‑1(1)

Insert:

gainfully employed means employed or self‑employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.

37

Subsection 995‑1(1)

Insert:

genuine redundancy payment has the meaning given by section 83‑175.

38

Subsection 995‑1(1)

Insert:

invalidity segment, of an *employment termination payment, has the meaning given by section 82‑150.

39

Subsection 995‑1(1)

Insert:

last retirement day means:

1. (a)

   if an individual’s employment or office would have terminated when he or she reached a particular age or completed a particular period of service—the day he or she would reach the age or complete the period of service (as the case may be); or

2. (b)

   in any other case—the day on which he or she would turn 65.

40

Subsection 995‑1(1)

Insert:

life benefit termination payment has the meaning given by subsection 82‑130(2).

41

Subsection 995‑1(1)

Insert:

long service leave employment period has the meaning given by subsection 83‑90(4).

42

Subsection 995‑1(1)

Insert:

low rate cap amount has the meaning given by section 307‑345.

43

Subsection 995‑1(1)

Insert:

low tax component has the meaning given by section 295‑545.

44

Subsection 995‑1(1)

Insert:

non‑arm’s length component has the meaning given by section 295‑545.

45

Subsection 995‑1(1)

Insert:

non‑arm’s length income has the meaning given by section 295‑550.

46

Subsection 995‑1(1) (definition of non‑complying ADF)

Repeal the definition.

47

Subsection 995‑1(1) (definition of non‑complying approved deposit fund)

Repeal the definition, substitute:

non‑complying approved deposit fund means an *approved deposit fund that is not a *complying approved deposit fund.

48

Subsection 995‑1(1) (definition of non‑complying superannuation fund)

Repeal the definition, substitute:

non‑complying superannuation fund means a *superannuation fund that is not a *complying superannuation fund.

49

Subsection 995‑1(1)

Insert:

non‑concessional contributions has the meaning given by section 292‑90.

50

Subsection 995‑1(1)

Insert:

non‑concessional contributions cap has the meaning given by section 292‑85.

51

Subsection 995‑1(1)

Insert:

no‑TFN contributions income has the meaning given by section 295‑610.

52

Subsection 995‑1(1)

Insert:

notional taxed contributions has the meaning given by section 292‑170.

53

Subsection 995‑1(1)

Insert:

original excess contributions tax assessment day has the meaning given by section 292‑305.

54

Subsection 995‑1(1)

Insert:

post‑17/8/93 period has the meaning given by subsection 83‑90(3).

55

Subsection 995‑1(1)

Insert:

pre‑16/8/78 period has the meaning given by subsection 83‑90(1).

56

Subsection 995‑1(1)

Insert:

pre‑18/8/93 period has the meaning given by subsection 83‑90(2).

57

Subsection 995‑1(1)

Insert:

pre‑July 83 segment, of an *employment termination payment, has the meaning given by section 82‑155.

58

Subsection 995‑1(1)

Insert:

preservation age has the meaning given by Part 6 of the Superannuation Industry (Supervision) Regulations 1994.

59

Subsection 995‑1(1)

Insert:

public sector superannuation scheme has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

60

Subsection 995‑1(1)

Insert:

quoted (for superannuation purposes) has the meaning given by section 295‑615.

61

Subsection 995‑1(1)

Insert:

roll‑over superannuation benefit has the meaning given by section 306‑10.

62

Subsection 995‑1(1)

Insert:

RSA component has the meaning given by section 295‑555.

63

Subsection 995‑1(1)

Insert:

RSA payment has the meaning given by section 307‑5.

64

Subsection 995‑1(1)

Insert:

segregated current pension assets has the meaning given by section 295‑385.

65

Subsection 995‑1(1)

Insert:

segregated non‑current assets has the meaning given by section 295‑395.

66

Subsection 995‑1(1)

Insert:

self managed superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

67

Subsection 995‑1(1)

Insert:

service period has the meaning given by section 307‑400.

68

Subsection 995‑1(1)

Insert:

SIS dependant means a dependant within the meaning of the Superannuation Industry (Supervision) Act 1993.

69

Subsection 995‑1(1)

Insert:

small superannuation account means an account within the meaning of the Small Superannuation Accounts Act 1995.

70

Subsection 995‑1(1)

Insert:

small superannuation account payment has the meaning given by section 307‑5.

71

Subsection 995‑1(1)

Insert:

standard component has the meaning given by section 295‑555.

72

Subsection 995‑1(1)

Insert:

superannuation annuity has the meaning given by the regulations.

73

Subsection 995‑1(1)

Insert:

superannuation annuity payment has the meaning given by section 307‑5.

74

Subsection 995‑1(1)

Insert:

superannuation benefit has the meaning given by section 307‑5.

Note: Sections 307‑10 and 307‑15 affect the meaning of superannuation benefit.

75

Subsection 995‑1(1)

Insert:

superannuation co‑contribution benefit payment has the meaning given by section 307‑5.

76

Subsection 995‑1(1)

Insert:

superannuation death benefit has the meaning given by section 307‑5.

77

Subsection 995‑1(1)

Insert:

superannuation fund for foreign residents has the meaning given by section 118‑520.

78

Subsection 995‑1(1)

Insert:

superannuation fund payment has the meaning given by section 307‑5.

79

Subsection 995‑1(1)

Insert:

superannuation guarantee payment has the meaning given by section 307‑5.

80

Subsection 995‑1(1)

Insert:

superannuation income stream has the meaning given by section 307‑70.

81

Subsection 995‑1(1)

Insert:

superannuation income stream benefit has the meaning given by section 307‑70.

82

Subsection 995‑1(1)

Insert:

superannuation interest means:

1. (a)

   an interest in a *superannuation fund; or

2. (b)

   an interest in an *approved deposit fund; or

3. (c)

   an *RSA; or

4. (d)

   an interest in a *superannuation annuity.

   Note: The meaning of superannuation interest may be affected by regulations made for the purposes of section 307‑200.

83

Subsection 995‑1(1)

Insert:

superannuation lump sum has the meaning given by section 307‑65.

84

Subsection 995‑1(1)

Insert:

superannuation member benefit has the meaning given by section 307‑5.

85

Subsection 995‑1(1)

Insert:

superannuation plan means:

1. (a)

   a *superannuation fund; or

2. (b)

   an *approved deposit fund; or

3. (c)

   an *RSA.

86

Subsection 995‑1(1)

Insert:

superannuation provider, in relation to a *superannuation plan, means:

1. (a)

   for a *superannuation fund—the trustee of the fund; or

2. (b)

   for an *approved deposit fund—the trustee of the fund; or

3. (c)

   for an *RSA—the *RSA provider.

87

Subsection 995‑1(1)

Insert:

taxable component:

1. (a)

   the taxable component of an *employment termination payment has the meaning given by section 82‑145; and

2. (b)

   the taxable component of a *superannuation benefit has the meaning given by section 307‑120; and

3. (c)

   the taxable component of a *superannuation interest has the meaning given by section 307‑215.

88

Subsection 995‑1(1)

Insert:

tax free component:

1. (a)

   the tax free component of an *employment termination payment has the meaning given by section 82‑140; and

2. (b)

   the tax free component of a *superannuation benefit has the meaning given by section 307‑120; and

3. (c)

   the tax free component of a *superannuation interest has the meaning given by section 307‑210.

89

Subsection 995‑1(1) (definition of trustee)

Repeal the definition, substitute:

trustee:

1. (a)

   of a *superannuation fund, an *approved deposit fund or a *pooled superannuation trust—means:

   1. (i)

      if there is a trustee (within the ordinary meaning of that expression) of the fund or trust—the trustee; or

   2. (ii)

      in any other case—the person who manages the fund or trust; and

2. (b)

   otherwise—has the meaning given by subsection 6(1) of the Income Tax Assessment Act 1936.

90

Subsection 995‑1(1)

Insert:

unclaimed money payment has the meaning given by section 307‑5.

91

Subsection 995‑1(1)

Insert:

untaxed plan cap amount has the meaning given in section 307‑350.

92

Subsection 995‑1(1)

Insert:

unused annual leave payment has the meaning given by section 83‑10.

93

Subsection 995‑1(1)

Insert:

unused long service leave payment has the meaning given by section 83‑75.

94

Subsection 995‑1(1) (at the end of the definition of value)

Add:

1. ; and (d)

   the value of a *superannuation interest has the meaning given by section 307‑205.

95

Subsection 995‑1(1) (definition of whole of life policy)

Repeal the definition, substitute:

whole of life policy has the meaning given by section 295‑480.

96

Application

An amendment made by this Schedule applies in relation to another amendment (the primary amendment) made by this Act in the same way as the primary amendment applies.

[Minister’s second reading speech made in—

House of Representatives on 7 December 2006

Senate on 26 February 2007]

(208/06)