Taxation Laws Amendment (Superannuation) Act 1989 (Cth)
This compilation was prepared on 6 October 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
TABLE OF PROVISIONS
PART I - PRELIMINARY
Section
Short title [
Commencement [
PART II - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Interpretation
Interpretation
Repeal of sections 27B and 27C and substitution of new sections:
Components of an ETP
Taxed and untaxed elements of post-June 83 component
Assessable income to include certain superannuation and
kindred payments
Assessable income to include 5% of certain amounts
Anti-detriment provision for service mismatch cases
Roll-over of eligible termination payments
Assessable income to include annuities and superannuation pensions
Rebate on dividends
Rebate on dividends paid as part of dividend stripping operation
Deductions for superannuation contributions by eligible persons
Interpretation
Interpretation
Insertion of new sections:
Exemption of CS/RA income that accrued before 1 July 1988
Current pension liabilities exemption
Premiums not assessable income
Insertion of new sections:
Deductions to be allowable for expenditure incurred in
gaining superannuation premiums
Disposal of units in PSTs by life assurance companies
Reduction in deductions that are not exclusively related to
producing assessable income
Division has effect subject to the Constitution
Application of Act to SGIOs
Repeal of section 112 and substitution of new section:
Deductions not allowable for expenditure incurred in
gaining certain premium income
Exemption of income attributable to certain policies etc.
Expenses of general management
Insertion of new sections:
Classes of assessable income and policies
Notional Part IIIA disposals of fund assets
Notional Part IIIA disposals of non-fund assets
Assessable income etc. in relation to 160Z gain amounts
Amount of assessable income in particular class
Apportionment of current year deductions between classes
Application of deficit arising for a particular class
Deduction of prior year losses
Components of taxable income
Interpretation
Insertion of new sections:
Exemption of CS/RA income that accrued before 1 July 1988
Current pension liabilities exemption
Repeal of section 116G and substitution of new sections:
Assessable income of registered organizations
Notional Part IIIA disposals of assets
Assessable income etc. in relation to 160Z gain amounts
Disposal of units in PSTs by registered organizations
Amount of assessable income in particular class
Insertion of new sections:
Deductions to be allowable for expenditure incurred in
gaining superannuation premiums
Apportionment of current year deductions between classes
Application of deficit arising for a particular class
Deduction of prior year losses
Components of taxable income
Liability to withholding tax
Insertion of new Subdivisions:
Interpretation
Entitlement to rebate
Tables of rebatable amounts
Classes of eligible assessable income
s.27B (1) (a) amounts attributable to fund membership
Rebatable amounts
Residual amount
Upper limit for purpose of determining residual amount
Treatment of s.27B (1) amounts assessed under section 101A
Interpretation
Purchase price or notional purchase price attributable to
ETP etc.
Accrual period for an ETP or superannuation pension
Entitlement to rebate - superannuation pension
Components in respect of superannuation pensions
Final percentage for superannuation pension
Intermediate percentages for components in respect of
superannuation pensions
Base percentages for ordinary component in respect of
superannuation pensions
Non-rebatable amount for superannuation pension
Certain superannuation pensions to be regarded as being
payable from funds
Entitlement to rebate - rebatable ETP annuity
Components in respect of rebatable ETP annuities
Final percentage for rebatable ETP annuity
Intermediate percentages for components in respect of
rebatable ETP annuities
Base percentages for ordinary component in respect of
rebatable ETP annuities
Rebate in respect of amounts assessable under section 26AH
Repeal of section 160AA
Interpretation
Receipt of franked dividends
Receipt of franked dividends through trusts and partnerships
Extra amount to be included in assessable income where franked
dividend paid
Franking rebate
Franking rebate for certain beneficiaries
Franking rebate for certain partners
Insertion of new section:
Franking rebates for certain life assurance companies
Other interpretative provisions
Asset bequeathed to tax-advantaged person
Insertion of new Division:
Disposal of units in PSTs by complying superannuation funds
and other tax-advantaged entities
Superannuation and approved deposit funds
Application of deductions in payment of tax
Medicare levy
Interpretation
Issue, revocation etc. of OSS notices
Insertion of new sections:
Exempting laws ineffective
Certain exempting provisions ineffective
Assumption to be made in calculating taxable income
Insertion of new sections:
Segregated current pension assets
Segregated non-current pension assets
Taxable contributions
Repeal of section 275 and substitution of new sections:
Transfer of taxable contributions
Pre-1 July 88 funding credit balance
Application of pre-1 July 88 funding credits
Contribution notices or eligible person notices given after return
lodgment date
Deduction for premiums for death or disability cover
Insertion of new sections:
Clawback of rebates or refunds of deductible premiums
Deduction for future service element of death or disability
benefits
Deduction for section 82AAQ assessable amounts
Deduction for certain potential detriment payments made
after the death of fund member
No deduction in respect of benefits
Repeal of section 283 and substitution of new sections:
Exclusion from assessable income of non-reversionary
bonuses on policies of life assurance
Exemption of income derived from segregated current pension
assets
Exemption of proportion of income attributable to current
pension liabilities
Insertion of new section:
Deduction for section 82AAQ assessable amounts
No deduction in respect of benefits
Insertion of new section:
Fixed interest complying ADFs - exemption of income
attributable to certain 25 May 1988 deposits
Insertion of new section:
Exclusion from assessable income of non-reversionary
bonuses on policies of life assurance
Liability to taxation
Insertion of new sections:
Exclusion from assessable income of non-reversionary
bonuses on policies of life assurance
Exemption of income attributable to current pension
liabilities of complying superannuation funds
Repeal of heading to Division 8 of Part IX and substitution of new
heading:
Insertion of heading and new sections:
Assessment as if entity were a complying superannuation
fund, complying ADF or PST
Assessment on basis of anticipated pre-1 July 88 funding
credit balance
Insertion of new Division:
Division applies to trustees of complying superannuation
funds, complying ADFs and PSTs
Interpretation
Part IIIA to be primary code for taxation of gains and
losses
Division to be treated as a provision of Part IIIA
30 June 1988 assets deemed to have been acquired on that
date
Disposal of taxable Australian assets
Cost base of 30 June 1988 asset
Market value of stock exchange listed assets
Adjustment of cost base as at 30 June 1988 - return of
capital
Rights to acquire shares or share options
Rights to acquire units or unit options
Company-issued options to acquire unissued shares
Unit trust-issued options to acquire unissued units
Options
Application of amendments
Transitional - life assurance companies and registered organizations
PART III - AMENDMENT OF THE OCCUPATIONAL SUPERANNUATION STANDARDS ACT
1987
Principal Act
Interpretation
Operating standards for superannuation funds
Operating standards for approved deposit funds
Operating standards for pooled superannuation trusts
Insertion of new section:
Pre-1 July 88 funding credits and debits
Review of certain decisions
PART IV - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953
Principal Act
Court may order payment of amount in addition to penalty
PART V - AMENDMENT OF THE TAXATION LAWS AMENDMENT ACT (No. 2) 1989
Principal Act
Application of superannuation and related amendments
Transitional - superannuation and related amendments
Repeal of section 18
Schedule 1
Schedule 2
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989 - LONG
TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment (Superannuation) Act
1989.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 2
Commencement [
2. (1) Subject to this section, this Act commences, or shall be taken to
have commenced, as the case requires, immediately after the commencement of
the Taxation Laws Amendment Act (No. 2) 1989.
(2) Paragraph 5 (o) shall be taken to have commenced on 18 December 1987.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Income Tax Assessment Act
1936.*1*
*1*No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5,
1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941;
Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945;
No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950;
No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43,
1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957;
No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos.
17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68,
110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19,
38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969;
No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos.
51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974);
Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165
and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and
172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57,
58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175,
1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54
and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123,
1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and 174, 1985;
No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51, 109, 112 and
154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52, 1986 (as
amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141, 1987); Nos.
23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by No. 108,
1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended
by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988); and Nos.
8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; and Nos. 2, 11 and 56,
1989.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 4
Interpretation
4. Section 6 of the Principal Act is amended by inserting in subsection (1)
the following definition:
"'SGIO' means a public authority:
(a) that is constituted by a law of a State or Territory; and
(b) that carries on life insurance business within the meaning of
that expression in subsection 4 (1) of the Life Insurance Act 1945;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 5
Interpretation
5. Section 27A of the Principal Act is amended:
(a) by omitting subparagraph (a) (i) of the definition of "eligible
termination payment" in subsection (1) and substituting the following
subparagraph:
"(i) made from a superannuation fund in respect of the taxpayer by reason
that the taxpayer is or was a member of the fund;";
(b) by omitting ", within the meaning of Part IX," from subparagraph (a)
(iiia) of the definition of "eligible termination payment" in subsection (1);
(c) by omitting sub-subparagraph (aa) (iv) (A) of the definition of
"eligible termination payment" in subsection (1) and substituting the
following sub-subparagraph:
"(A) made to the taxpayer from a superannuation fund by reason that another
person was a member of the fund;";
(d) by omitting ", within the meaning of Part IX," from sub-subparagraph
(aa) (iv) (D) of the definition of "eligible termination payment" in
subsection (1);
(e) by omitting "to a natural person" from the definition of "immediate
annuity" in subsection (1);
(f) by omitting paragraph (b) of the definition of "life assurance company"
in subsection (1) and substituting the following paragraph:
"(b) an SGIO;";
(g) by omitting ", within the meaning of Part IX," from subparagraph (a)
(iaa) of the definition of "superannuation fund" in subsection (1);
(h) by inserting "or (B)" after "27D (1) (b) (iii) (A)" in paragraph (b) of
the definition of "undeducted purchase price" in subsection (1);
(j) by inserting in subsection (1) the following definitions:
"'actual net benefit' in relation to an amount that is an ETP in
relation to a taxpayer, means the amount of the ETP reduced by any tax payable
by the taxpayer that is attributable to the ETP;
'complying ADF' has the same meaning as in Part IX;
'complying superannuation fund' has the same meaning as in Part
IX;
'continuously complying ADF' has the same meaning as in Part
IX;
'continuously complying superannuation fund' has the same
meaning as in Part IX;
'eligible superannuation fund' has the same meaning as in Part
IX;
'equivalent old system ETP', in relation to an amount that is an
ETP in relation to a taxpayer, means the amount that would have been the
amount of the ETP if taxable contributions were exempt income;
'ETP' means an eligible termination payment;
'non-complying superannuation fund' has the same meaning as in
Part IX;
'old system net benefit', in relation to an equivalent old system
ETP in relation to a taxpayer, means the amount of that ETP reduced by any tax
that would have been payable by the taxpayer and attributable to that ETP if:
(a) the whole of any amount that would have been included in the
assessable income of the taxpayer under subsection 27B (1) in respect of the
ETP were treated as having been included under paragraph 27B (1) (b); and
(b) the rebate under Subdivision AAA of Division 17,
insofar as the rebate would be attributable to the ETP, were calculated by
reference to an upper limit (within the meaning of that Subdivision) of
$55,000;
'post-June 83 component', in relation to an ETP, has the meaning
given by section 27AA;
'pre-July 83 component', in relation to an ETP, has the meaning
given by section 27AA;
'rolled-over' has the meaning given by paragraph (13) (a);
'roll-over' means an application of section 27D in relation to an
ETP;
'taxable contribution' has the same meaning as in Part IX;
'taxed element', in relation to the post-June 83 component of an
ETP, has the meaning given by section 27AB;
'taxed superannuation fund', in relation to an ETP, means a
superannuation fund that:
(a) is or has been an eligible superannuation fund in
relation to any year of income; and
(b) is not a constitutionally protected fund, within the
meaning of Part IX, in relation to the year of income in which the ETP was
made;
'untaxed element', in relation to the post-June 83 component of
an ETP, has the meaning given by section 27AB;";
(k) by omitting subsection (10) and substituting the following subsection:
"(10) Where:
(a) a part of an ETP (in this subsection called the 'original
ETP') has been rolled-over; and
(b) the eligible service period (in this subsection called the
'original eligible service period') in relation to the original ETP commenced
before 1 July 1983;
then, for the purposes of the application of this Act in relation to any
subsequent ETP that is made in relation to the taxpayer and is attributable to
the original ETP, there shall be deducted from the beginning of the original
eligible service period the number of whole days included in the original
eligible service period that is calculated using the formula:
Reduced pre-July 83 component
Pre-July 83 days x -----------------------------
Pre-July 83 component
where:
Pre-July 83 days is the number of whole days in the original
eligible service period that occurred before 1 July 1983;
Reduced pre-July 83 component is the number of whole dollars
in so much of the pre-July 83 component for the original ETP as has not been
rolled-over; and
Pre-July 83 component is the number of whole dollars in the
pre-July 83 component for the original ETP.";
(m) by omitting subsection (13) and substituting the following subsection:
"(13) For the purposes of this Subdivision:
(a) an amount is rolled over if section 27D requires the amount
to be taken to have been expended in making a payment as mentioned in
paragraph (12) (a), (b) or (c) of this section; and
(b) an ETP or a particular part of an ETP is attributable to an
earlier ETP or a particular part of an earlier ETP if and only if the later
ETP or part is attributable to the earlier ETP or part, directly or
indirectly, through one or more rollovers.";
(n) by omitting from paragraph (14) (a) "paragraph 27C (1) (d)" and
substituting "subsection 27C (1A)";
(o) by omitting from subparagraph (14) (c) (ii) "(a) (ii)" and substituting
"(a) (iii)";
(p) by adding at the end the following subsections:
"(17) For the purposes of this Subdivision, where the
Commissioner is of the opinion that the whole or a part of a particular ETP:
(a) is not, apart from this subsection, paid from an eligible
superannuation fund; and
(b) is, in effect, funded from an eligible superannuation fund;
the ETP, or the part of the ETP, as the case may be, shall be treated as if it
were paid from that eligible superannuation fund.
"(18) For the purposes of this Subdivision, where the Commissioner is of the
opinion that a particular superannuation pension:
(a) is not, apart from this subsection, payable from an eligible
superannuation fund; and
(b) is, in effect, funded from an eligible superannuation fund;
the superannuation pension shall be treated as if it were payable from that
eligible superannuation fund.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 6
6. Sections 27B and 27C of the Principal Act are repealed and the following
sections are substituted:
Components of an ETP
"27AA. (1) An ETP consists of one or more of the following components:
(a) the concessional component;
(b) the undeducted contributions;
(c) in the case of an immediate annuity eligible termination payment - the
non-qualifying component;
(d) the pre-July 83 component, which is the lesser of the following
amounts:
(i) the amount calculated using the formula:
Pre-July 83
(ETP - C - NQ) x -----------
Total period
where:
ETP is the amount of the ETP;
C is the concessional component;
NQ is the non-qualifying component;
Pre-July 83 is the number of whole days (if any) in the
eligible service period that occurred before 1 July 1983; and
Total period is the number of whole days in the eligible
service period;
(ii) the amount represented by the component (ETP-C-NQ)
in subparagraph (i), reduced by the undeducted contributions;
(e) the post-June 83 component, which is the ETP reduced by the other
components.
"(2) The Commissioner may increase the amount calculated under subparagraph
(1) (d) (i) if the Commissioner considers it appropriate to do so having
regard to the following matters:
(a) if the ETP relates to employment in which the taxpayer was engaged on 30
June 1983 - the amount of an ETP that could, in the opinion of the
Commissioner, reasonably be expected to have been made in relation to the
taxpayer in consequence of the termination of that employment if that
employment had been terminated on that date;
(b) if the ETP relates to membership of the taxpayer of a superannuation
fund on 30 June 1983 - the amount of an ETP that could, in the opinion of the
Commissioner, reasonably be expected to have been made in relation to the
taxpayer from the fund in consequence of the termination of the taxpayer's
membership of the fund if that membership had terminated on that date;
(c) any previous application in relation to the taxpayer of this subsection
or of subsection 27B (2) as in force at any time before the commencement of
section 1 of the Taxation Laws Amendment (Superannuation) Act 1989;
(d) such other matters as the Commissioner considers relevant.
Taxed and untaxed elements of post-June 83 component
"27AB. (1) Subject to this section, the extent to which the post-June 83
component of an ETP consists of taxed and untaxed elements is determined as
follows:
(a) the extent to which it consists of a taxed element is determined in
accordance with the table below;
(b) to the extent to which it does not consist of a taxed element, it
consists of an untaxed element.
TABLE OF TAXED ELEMENTS
------------------------------------------------------------------------------
-- Taxed
ETP type element
------------------------------------------------------------------------------
(a) or (aa). .. .. .. .. .. .. .. .. .. .. none
(b), if paid from taxed superannuation fund during the whole
life of the taxpayer
(b), if paid from taxed superannuation fund after the amount
calculated
under subsection (3)
(ba), if paid from taxed superannuation fund. .. .. amount
calculated
under subsection (3)
(c), (ca), (g), (h) or (j). .. .. .. .. .. .. . whole
(d), (e) or (f), if pension concerned payable from amount
calculated
subsection (3)
(d), (e) or (f), if pension concerned paid from taxed whole
superannuation fund and ETP not covered by item 6
(da), (db), (ga) or (gb), if paid from taxed amount
calculated
under subsection (3)
ETP not covered by items 1 to 8, where no part is none
attributable to taxed element of earlier ETP
ETP not covered by items 1 to 8, but to some extent so much of
that
component as
is
attributable
to
the taxed
element of
the
post-June 83
component of
the earlier ETP
"(2) For the purposes of the table above:
(a) paragraph references indicate an ETP that is covered by the paragraph
concerned of the definition of 'eligible termination payment' in subsection
27A (1); and
(b) an ETP is attributable to a taxed element if, and only if, the ETP is
(in whole or in part) attributable to the taxed element of the post-June 1983
component of an earlier ETP.
"(3) The taxed element of the post-June 83 component of an ETP covered by
item 3, 4, 6 or 8 in the table in subsection (1) is determined as follows:
(a) if both of the following subparagraphs apply in relation to the
post-June 83 component:
(i) no deduction is or was allowable under section 279 to the
trustee of the taxed superannuation fund concerned in any year of income in
relation to a current or contingent liability to provide death or disability
benefits (within the meaning of Part IX) for the deceased person concerned;
(ii) no deduction is or was allowable under section 279B to the
trustee of the taxed superannuation fund concerned in any year of income in
relation to a death or disability ETP (within the meaning of that section)
paid in relation to the deceased person concerned;
the taxed element is the whole of the component;
(b) if paragraph (a) does not apply:
(i) in the case of an ETP covered by item 6 or 8 in the table
in subsection (1) that was calculated by taking into account the amount, or
the amount that would have been the amount, of the unused undeducted purchase
price in relation to a pension or annuity (which amount is in this subsection
called the 'UUPP amount'), the taxed element of the post-June 83 component of
the ETP is the amount that would have been the amount of the post-June 83
component if the ETP had been equal to the amount calculated using the
following formula and had been reduced by the UUPP amount:
Days in eligible service period
Grossed-up ETP x -------------------------------
Days in total service period
where:
Grossed-up ETP is the amount of the ETP increased by
Days in eligible service period is the number of whole
Days in total service period is the sum of:
the UUPP amount;
days in the eligible service period in relation to the ETP;
(A) Days in eligible service period; and
(B) the number of whole days in the period commencing on the
date of the death of the member of the fund and ending on the last retirement
date; or
(ii) in any other case - the amount that would have been the
amount of the post-June 83 component if the ETP had been equal to the amount
calculated using the following formula:
Days in eligible service period
ETP x -------------------------------
Days in total service period
where:
ETP is the amount of the ETP;
Days in eligible service period has the same meaning as in
subparagraph (i);
Days in total service period has the same meaning as in
subparagraph (i).
"(4) In spite of anything in subsection (1), where:
(a) an ETP is paid from a taxed superannuation fund;
(b) apart from this subsection, the post-June 83 component of the ETP
consists wholly or partly of a taxed element (which taxed element is in this
subsection called the 'otherwise taxed element'); and
(c) the trustee of the fund gives to the person to whom the ETP is paid,
within the time and in the manner approved by the Commissioner in writing, a
written notice nominating the whole or a specified part of the otherwise taxed
element as an untaxed element of the post-June 83 component of the ETP;
so much of the otherwise taxed element of the post-June 83 component of the
ETP as is covered by the notice shall be treated as, or as an additional part
of, the untaxed element of the post-June 83 component of the ETP.
"(5) The trustee of the fund is not allowed to give more than one notice
under subsection (4) in relation to a particular ETP.
"(6) Where, because of subsection 27A (17):
(a) a particular part of an ETP is taken to have been paid from a taxed
superannuation fund; and
(b) the remaining part of the ETP is not taken to have been paid from a
taxed superannuation fund;
the following provisions have effect:
(c) the taxed element of the post-June 83 component of the ETP is the amount
obtained by:
(i) treating each of the parts referred to in paragraph (a) and
(b) of this subsection as separate ETPs;
(ii) calculating the taxed element of the post-June 83 component
of each of those separate ETPs in accordance with the preceding provisions of
this section; and
(iii) adding together those taxed elements;
(d) to the extent to which the post-June 83 component of the ETP does not
consist of a taxed element, it consists of an untaxed element.
Assessable income to include certain superannuation and kindred
payments
"27B. (1) Where an ETP is made in relation to a taxpayer in a year of
income, the assessable income of the taxpayer of the year of income includes:
(a) the taxed element of the post-June 83 component reduced by so much of
that element as has been rolled-over; and
(b) the untaxed element of the post-June 83 component reduced by so much of
that element as has been rolled-over.
"(2) Where an ETP is made in relation to a taxpayer in a year of income, the
assessable income of the taxpayer of the year of income includes the
non-qualifying component.
Assessable income to include 5% of certain amounts
"27C. (1) Subject to subsection (2), if an ETP made in relation to a
taxpayer in a year of income includes a pre-July 83 component, the assessable
income of the taxpayer of the year of income shall include 5% of so much of
that component as has not been rolled-over.
"(1A) If the Commissioner, having regard to the extent to which the ETP
would have been included in the assessable income of the taxpayer if the
amendments made by the Income Tax Assessment Amendment Act (No. 3) 1984 had
not been made, considers that it is appropriate that a lesser amount be
included instead in the taxpayer's assessable income, that lesser amount shall
be included.
"(2) If an ETP made in relation to a taxpayer in a year of income includes a
concessional component, the assessable income of the taxpayer of the year of
income shall include 5% of so much of that component as has not been
rolled-over.
Anti-detriment provision for service mismatch cases
"27CA. (1) This section applies to an ETP (in this section called the
'actual ETP') if:
(a) the ETP is made in relation to the taxpayer on or after the taxpayer's
55th birthday; and
(b) the ETP:
(i) is paid by a continuously complying superannuation fund or
continuously complying ADF; or
(ii) is made in relation to the commutation of, or is the residual
capital value of, a rebatable ETP annuity (within the meaning of Subdivision
AAB of Division 17).
"(2) If the Commissioner is satisfied in respect of the actual ETP that:
(a) the old system net benefit for the equivalent old system ETP would have
exceeded the actual net benefit for the actual ETP; and
(b) the whole or part (which whole or part is in this section called the
'detriment amount') of the excess referred to in paragraph (a) is attributable
to the fact that an amount or amounts were included in the assessable income
of any taxpayer in relation to taxable contributions made to a complying
superannuation fund;
the Commissioner shall take such steps as are necessary to compensate the
taxpayer for the detriment amount.
"(3) The steps that the Commissioner may take include:
(a) reducing the amount of tax payable by the taxpayer in respect of the
year of income in which the actual ETP was received (including a reduction by
way of a rebate of tax or increased rebate of tax); or
(b) granting to the taxpayer an entitlement to a credit of tax.
"(4) Sections 160AI to 160AL (inclusive) apply in relation to a decision of
the Commissioner granting an entitlement to a credit under this section in
like manner as those sections apply to a determination of a credit within the
meaning of those sections.
"(5) The Commissioner shall apply a credit of tax to which the taxpayer is
entitled under this section in payment successively of:
(a) any tax payable by the taxpayer in respect of the year of income in
which the ETP is made (whether or not that tax is due for payment); and
(b) any other liability of the taxpayer to the Commonwealth arising under,
or by virtue of, this Act or any other Act of which the Commissioner has the
general administration;
and shall refund to the taxpayer so much of the credit as is not so applied.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 7
Roll-over of eligible termination payments
7. Section 27D of the Principal Act is amended by omitting sub-subparagraphs
(1) (b) (iii) (A) and (B) and substituting the following sub-subparagraphs:
"(A) the taxed element of the post-June 83 component;
(B) the untaxed element of the post-June 83 component;
(BA) the pre-July 83 component;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 8
Assessable income to include annuities and superannuation pensions
8. Section 27H of the Principal Act is amended by omitting from paragraph
(3A) (b) "the amount referred to in subsection 27B (1) as the relevant amount"
and substituting "the post-June 83 component".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 9
Rebate on dividends
9. Section 46 of the Principal Act is amended by adding at the end the
following subsections:
"(10) A shareholder in a company is not entitled to a rebate under this
section in its assessment in respect of a dividend paid to it by the company
if:
(a) the shareholder is a life assurance company; and
(b) the assets of the shareholder from which the dividend was derived were
included in insurance funds of the shareholder at any time during the period
commencing at the beginning of the year of income of the shareholder in which
the dividend was paid and ending at the time the dividend was paid.
"(11) In subsection (10), 'insurance funds' and 'life assurance company'
have the same respective meanings as in Division 8.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 10
Rebate on dividends paid as part of dividend stripping operation
10. Section 46A of the Principal Act is amended by adding at the end the
following subsections:
"(17) A shareholder in a company is not entitled to a rebate under this
section in its assessment in respect of a dividend paid to it by the company
if:
(a) the shareholder is a life assurance company; and
(b) the assets of the shareholder from which the dividend was derived were
included in insurance funds of the shareholder at any time during the period
commencing at the beginning of the year of income of the shareholder in which
the dividend was paid and ending at the time the dividend was paid.
"(18) In subsection (17), 'insurance funds' and 'life assurance company'
have the same respective meanings as in Division 8.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 11
Deductions for superannuation contributions by eligible persons
11. Section 82AAT of the Principal Act is amended:
(a) by omitting from paragraph (1C) (a) "prescribed form" and substituting
"form approved by the Commissioner in writing for the purposes of this
paragraph";
(b) by omitting from paragraph (1C) (b) "prescribed manner" and substituting
"manner approved by the Commissioner in writing for the purposes of this
paragraph".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 12
Interpretation
12. Section 102M of the Principal Act is amended by omitting the definition
of "eligible policy" and substituting the following definition:
"'eligible policy' means:
(a) an eligible policy within the meaning of Division 8;
(b) a CS policy within the meaning of Division 8; or
(c) an RA policy within the meaning of Division 8;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 13
Interpretation
13. Section 110 of the Principal Act is amended:
(a) by omitting "to a natural person" from the definition of "immediate
annuity" in subsection (1);
(b) by omitting from subsection (1) the definitions of "exempt
superannuation fund" and "exempt superannuation scheme";
(c) by omitting from subsection (1) the definitions of "eligible policy",
"life assurance company" and "superannuation policy" and substituting the
following definitions:
"'eligible policy' means:
(a) a life assurance policy in relation to an immediate
annuity, being an immediate annuity that satisfies the following conditions:
(i) the annuity was purchased on or before 9
December 1987;
(ii) none of the purchase price consists of a rolled over
amount or rolled-over amounts;
(b) a life assurance policy in relation to an immediate
annuity, being an immediate annuity that satisfies the following conditions:
(i) the annuity was purchased on or before 9
December 1987;
(ii) the purchase price consists wholly or partly of
a rolled-over amount or rolled-over amounts;
(iii) the approved annuity conditions are satisfied;
or
(c) a life assurance policy in relation to an immediate
annuity, being an immediate annuity that satisfies the following conditions:
(i) the annuity was purchased after 9 December
1987;
(ii) the approved annuity conditions are satisfied;
'life assurance company' means:
(a) an ordinary life assurance company; or
(b) an SGIO;
'superannuation policy' means:
(a) a CS policy; or
(b) an NCS policy;";
(d) by inserting in subsection (1) the following definitions:
"'AD/RLA component' means the component of the taxable
income determined under section 116CJ for the AD/RLA class;
'AD/RLA policy' means:
(a) an AD policy; or
(b) a life assurance policy other than:
(i) an eligible policy;
(ii) a superannuation policy; or
(iii) an RA policy;
'AD policy' means:
(a) an accident policy; or
(b) a disability policy;
'AD premiums' means premiums received in respect of AD
policies;
'approved annuity conditions', in relation to an annuity, means
the conditions that:
(a) if the annuity contract permits a residual capital,
value to be payable - the contract does not permit the residual capital value
to exceed the purchase price of the annuity;
(b) if the annuity is payable for a term of years certain -
the annuity contract does not permit the total of any commutation payments to
exceed the reduced purchase price of the annuity;
(c) if the annuity is payable until:
(i) the death of a particular person or of the last
to die of 2 or more persons; or
(ii) the end of a term of years certain;
whichever last occurs, and the annuity contract permits a commutation payment
or payments to become payable before the end of that term of years certain -
the contract does not permit the total of such payments to exceed the reduced
purchase price of the annuity; and
(d) the Commissioner is satisfied there will not be any
unreasonable deferral of the derivation of any annuity income, having regard
to the following matters:
(i) to the extent to which the amounts of that annuity income
will depend on the amount of income that may be derived by the person paying
the annuity - the respective times of derivation of those amounts of annuity
income and of the income of the person paying the annuity;
(ii) to the extent to which the amounts of that
annuity income are not dependent on the amount that may be derived by the
person paying the annuity - the relative sizes of the annual entitlements to
that annuity income;
(iii) such other matters as the Commissioner
considers relevant;
'class', in relation to assessable income or policies, means a class
specified in section 116CA;
'complying ADF' has the same meaning as in Part IX;
'complying superannuation fund' has the same meaning as in
Part IX;
'complying superannuation scheme' means a provident, benefit,
superannuation or retirement scheme:
(a) in respect of which there is a complying superannuation
fund; or
(b) in respect of which there is no such fund but in
respect of which the Commissioner is of the opinion that, if there were a fund
in respect of the scheme, it would, having regard to the terms and conditions
of the scheme, be a complying superannuation fund;
'CS policy' means a life assurance policy (other than an eligible
policy):
(a) that is vested in the trustee of:
(i) a complying superannuation fund;
(ii) a complying ADF; or
(iii) a pooled superannuation trust; or
(b) that was:
(i) effected for the purposes of a complying
superannuation scheme; or
(ii) accepted by the person maintaining such a
scheme for the purposes of the scheme;
not being a policy that has ceased to be a policy for the purposes of such a
fund, trust or scheme;
'CS/RA component' means the component of the taxable income
determined under section 116CJ for the CS/RA class;
'current surplus', in relation to a class of assessable income,
means:
(a) the amount by which the assessable income of that
class exceeds the deductions allocated to that class under section 116CF; or
(b) if an amount has been applied under section 116CG
in reduction of a current surplus previously calculated under this definition
- the amount by which that previous surplus exceeds the amount so applied
under section 116CG;
'current year deduction' means an allowable deduction other
than:
(a) a notional Part IIIA disposals deduction; or
(b) a prior year loss deduction;
'deficit', in relation to a class of assessable income, means the
amount by which the assessable income of that class is less than the
deductions allocated to that class under section 116CF;
'eligible termination payment' has the same meaning as in
Subdivision AA of Division 2;
'exempt policy':
(a) in relation to an ordinary life assurance company -
means an eligible policy; or
(b) in relation to an SGIO - means any life assurance
policy other than:
(i) a CS policy;
(ii) an NCS policy; or
(iii) an RA policy;
'fund assessable income' means assessable income derived from
the assets included in the insurance funds;
'fund asset', in relation to a disposal, means an asset that was
included in any of the insurance funds immediately before the disposal;
'modified 25/25A amount', in relation to a disposal of an asset,
means any amount that would (apart from sections 116CB and 116CC) be included
in assessable income under section 25 or 25A in respect of the disposal if
Division 10 of Part IX applied in respect of the disposal;
'modified 51/52 amount', in relation to a disposal of an asset,
means any amount that would (apart from sections 116CB and 116CC) be allowable
as a deduction under section 51 or 52 in respect of the disposal if Division
10 of Part IX applied in respect of the disposal;
'modified 160Z gain amount', in relation to a disposal of an
asset, means any capital gain that would (apart from this Division) be deemed
for the purposes of Part IIIA to have accrued in respect of the disposal of
the asset if Division 10 of Part IX applied in respect of the disposal,
reduced by the proportion of that gain that would be calculated using the
formula in section 112A;
'modified 160Z loss amount', in relation to a disposal of an
asset, means any capital loss that would (apart from this Division) be deemed
for the purposes of Part IIIA to have been incurred in respect of the disposal
of the asset if Division 10 of Part IX applied in respect of the disposal;
'NCS component' means the component of the taxable income
determined under section 116CJ for the NCS class;
'NCS policy' means a life assurance policy (other than an
eligible policy):
(a) that is vested in the trustee of:
(i) a non-complying superannuation fund; or
(ii) a non-complying ADF; or
(b) that was:
(i) effected for the purposes of a non-complying
superannuation scheme; or
(ii) accepted by the person maintaining such a
scheme for the purposes of the scheme;
not being a policy that has ceased to be a policy for the purposes of such a
fund or scheme;
'non-complying ADF' has the same meaning as in Part IX;
'non-complying superannuation fund' has the same meaning as
in Part IX;
'non-complying superannuation scheme' means a provident,
benefit, superannuation or retirement scheme:
(a) in respect of which there is a non-complying
superannuation fund; or
(b) in respect of which there is no such fund but in
respect of which the Commissioner is of the opinion that, if there were a fund
in respect of the scheme, it would, having regard to the terms and conditions
of the scheme, be a non-complying superannuation fund;
'non-fund assessable income' means assessable income other than
fund assessable income, but does not include:
(a) AD premiums;
(b) specified roll-over amounts; or
(c) amounts included in assessable income under section
275;
'non-fund asset', in relation to a disposal, means an asset that
was not included in any of the insurance funds immediately before the
disposal;
'non-fund component' means the component of the taxable
income determined under section 116CJ for the non-fund class;
'notional Part IIIA disposal' means a disposal (within the meaning
of Part IIIA) of an asset (within the meaning of that Part), being:
(a) a disposal to which that Part applies; or
(b) a disposal to which that Part would apply if:
(i) section 160ZZF and Divisions 5A and 17 of
that Part were disregarded; and
(ii) subsection 306 (1) applied to the asset
concerned;
'notional Part IIIA disposals deduction' means so much of an
ordinary 51/52 amount or modified 51/52 amount as is allowable as a
deduction;
'notional Part IIIA disposals income' means:
(a) so much of any ordinary 25/25A amount or modified
25/25A amount as is included in assessable income; or
(b) any amount included in assessable income under
section 116CD;
'ordinary life assurance company' means a company the sole or
principal business of which is life assurance and includes a company that is
registered under the Life Insurance Act 1945 and is carrying on life assurance
business, but does not include an SGIO;
'ordinary 25/25A amount' means any amount that would (apart
from sections 116CB and 116CC) be included in assessable income under section
25 or 25A in respect of a notional Part IIIA disposal;
'ordinary 51/52 amount' means any amount that would (apart
from sections 116CB and 116CC) be allowable as a deduction under section 51 or
52 in respect of a notional Part IIIA disposal;
'ordinary 160Z gain amount', in relation to the disposal of an
asset, means any capital gain that would (apart from this Division) be deemed
for the purposes of Part IIIA to have accrued in respect of the disposal of
the asset, reduced by the proportion of that gain that would be calculated
using the formula in section 112A;
'ordinary 160Z loss amount', in relation to a disposal of an asset,
means any capital loss that would (apart from this Division) be deemed for the
purposes of Part IIIA to have been incurred in respect of the disposal of the
asset;
'overall 160Z gain' means:
(a) for the non-fund class - the amount by which the sum
of the ordinary 160Z gain amounts for that class exceeds the sum of the
ordinary 160Z loss amounts for that class;
(b) for the CS/RA class - the amount by which the total
modified 160Z gain amount for that class exceeds the total modified 160Z loss
amount for that class; or
(c) for any other class - the amount by which the total
ordinary 160Z gain amount for that class exceeds the total ordinary 160Z loss
amount for that class;
or, if an amount has been applied under subsection 116CD (3) in reduction of
an overall 160Z gain previously calculated under this definition - the amount
by which that previous overall 160Z gain exceeds the amount so applied under
that subsection;
'overall 160Z loss' means:
(a) for the non-fund class - the amount by which the sum
of the ordinary 160Z gain amounts for that class is less than the sum of the
160Z ordinary loss amounts for that class;
(b) for the CS/RA class - the amount by which the total
modified 160Z gain amount for that class is less than the total modified 160Z
loss amount for that class; or
(c) for any other class - the amount by which the total
ordinary 160Z gain amount for that class is less than the total ordinary 160Z
loss amount for that class;
'pooled superannuation trust' has the same meaning as in Part
IX;
'prior year loss deduction' means a deduction allowable under
section 80, 80AAA or 80AA;
'prior year Part IIIA loss', in relation to a year of income (in
this definition called the 'loss year'), means the amount (if any) by which
the sum of:
(a) the sum of the overall 160Z losses for all the classes
of assessable income for the loss year; and
(b) any prior year Part IIIA loss calculated under this
definition for the year of income immediately preceding the loss year;
exceeds the sum of the overall 160Z gains (before any application of section
116CD) for all the classes of assessable income;
'RA policy' means:
(a) a life assurance policy in relation to a roll-over annuity;
or
(b) a life assurance policy (other than an eligible policy)
in relation to an immediate annuity:
(i) that is an eligible annuity within the meaning
of Subdivision AA of Division 2; and
(ii) whose purchase price consists wholly or partly
of a rolled-over amount or rolled-over amounts;
'residual current surplus', means:
(a) so much of a current surplus as remains after the
application of section 116CG; or
(b) if an amount has been applied under section 116CH
in reduction of a residual current surplus previously calculated under this
definition - the amount by which that previous residual current surplus
exceeds the amount so applied under section 116CH;
'residual overall 160Z gain' means so much of an overall 160Z
gain as remains after the application of subsection 116CD (3);
'rolled-over amount' has the same meaning as in Subdivision AA
of Division 2;
'roll-over annuity' has the same meaning as in Subdivision AA
of Division 2;
'specified roll-over amount', in relation to a life insurance
company, means so much of an amount paid to the company on or after 1 July
1988 as constitutes a roll-over of some or all of the untaxed element of the
post-June 83 component (within the meaning of Subdivision AA of Division 2) of
an eligible termination payment;
'superannuation premiums' means premiums received in respect
of superannuation policies;
'total modified 160Z gain amount', in relation to the CS/RA
class of assessable income, means the total of so much of any modified 160Z
gain amounts as has been allocated to that class under section 116CB;
'total modified 160Z loss amount', in relation to the CS/RA
class of assessable income, means the total of so much of any modified 160Z
loss amounts as has been allocated to that class under section 116CB;
'total ordinary 160Z gain amount', in relation to a class of
assessable income, means the total of so much of any ordinary 160Z gain
amounts as has been allocated to that class under section 116CB;
'total ordinary 160Z loss amount', in relation to a class of
assessable income, means the total of so much of any ordinary 160Z loss
amounts as has been allocated to that class under section 116CB;";
(e) by adding at the end the following subsections:
"(3) For the purposes of this Division, a life assurance policy or
an AD policy shall be taken to be included in a fund if, in the opinion of the
Commissioner, liabilities under that policy would be payable from that fund.
"(4) A reference in this Division to an amount of income or
assessable income derived from assets included in the insurance funds includes
a reference to an amount derived, or included in assessable income, in respect
of assets included in the insurance funds.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 14
14. After section 110 of the Principal Act the following sections are
inserted:
Exemption of CS/RA income that accrued before 1 July 1988
"110B. Of each amount derived by a life assurance company in the year of
income that would, apart from this section and section 110C, be included in
the CS/RA class of assessable income, so much of the amount as accrued to the
company before 1 July 1988 is exempt from tax.
Current pension liabilities exemption
"110C. (1) If the Commissioner is satisfied that a percentage of the
notional CS/RA amount of a life assurance company would have been exempt from
tax under section 282B or 283 if the notional CS/RA amount had been derived
instead by the holders of CS policies issued by the company, that percentage
of the notional CS/RA amount is exempt from tax.
"(2) In this section:
'notional CS/RA amount' means the amount that, apart from this section,
would be the CS/RA class of assessable income.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 15
Premiums not assessable income
15. Section 111 of the Principal Act is amended by inserting after
subsection (1) the following subsection:
"(1A) Subsection (1) does not apply to specified roll-over amounts.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 16
16. After section 111 of the Principal Act the following sections are
inserted:
Deductions to be allowable for expenditure incurred in gaining
superannuation premiums
"111A. For the purpose of determining the deductions allowable to a life
assurance company, superannuation premiums shall be treated as assessable
income.
Disposal of units in PSTs by life assurance companies
"111B. (1) If:
(a) a life assurance company disposes of a unit in a unit trust;
(b) the unit trust is a pooled superannuation trust in relation to the year
of income of the unit trust in which the disposal occurred; and
(c) immediately before the disposal of the unit, the unit was included in a
tax-advantaged insurance fund of the company;
the following provisions have effect:
(d) an amount shall not be included in the assessable income of the company
under section 25 in respect of the disposal;
(e) sections 25A and 52 do not apply in respect of the disposal of the
unit;
(f) an amount shall not be allowed as a deduction under section 51 to the
company in respect of the disposal.
"(2) The reference in subsection (1) to a tax-advantaged insurance fund of a
life assurance company is a reference to a particular one of the insurance
funds where, at the end of the year of income in which the disposal of the
unit occurred, the life assurance policies included in the insurance fund
consisted wholly of any or all of the following:
(a) CS policies;
(b) RA policies;
(c) eligible policies.
Reduction in deductions that are not exclusively related to producing
assessable income
"111C. (1) This section applies to any deduction that:
(a) apart from this section, would be allowable to a life assurance company
otherwise than under section 51 or 113; and
(b) does not relate exclusively to the assessable income of the company.
"(2) A deduction to which this section applies is allowable only to the
extent calculated using the formula:
Assessable income
Deduction X -----------------
Total income
where:
Deduction is the amount of the deduction concerned;
Assessable income is the number of dollars in the assessable income of the
company;
Total income is the number of dollars in the total of all the amounts that
would be assessable income of the company apart from any exempting provision.
Division has effect subject to the Constitution
"111D. It is the intention of the Parliament that if, but for this section,
this Division would have the effect that a law imposing taxation would impose
tax on property of any kind belonging to a State within the meaning of section
114 of the Constitution, this Division shall not have that effect.
Application of Act to SGIOs
"111E. Paragraph 23 (d) does not apply to an SGIO.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 17
17. Section 112 of the Principal Act is repealed and the following section
is substituted:
Deductions not allowable for expenditure incurred in gaining certain
premium income
"112. (1) A deduction is not allowable to a life assurance company in
respect of expenditure incurred exclusively in gaining premiums that are
excluded from assessable income by section 111.
"(2) This section does not apply to superannuation premiums to which section
111A applies.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 18
Exemption of income attributable to certain policies etc.
18. Section 112A of the Principal Act is amended:
(a) by omitting from subsection (1) "eligible policies" and substituting
"exempt policies";
(b) by omitting subsection (1A) and substituting the following subsection:
"(1A) The assessable income of an SGIO shall not include any
amounts other than:
(a) income derived from assets included in the insurance funds;
(b) specified roll-over amounts; and
(c) amounts included in assessable income under section 275.";
(c) by omitting from subsection (2) "eligible" and substituting "exempt";
(d) by omitting subsection (4).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 19
Expenses of general management
19. Section 113 of the Principal Act is amended by adding at the end the
following subsection:
"(4) A provision of this Act (including a provision of section 51) that
expressly prevents or restricts the operation of section 51 applies in the
same way to this section.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 20
20. Before section 116D of the Principal Act the following sections are
inserted:
Classes of assessable income and policies
"116CA. (1) The following table sets out the classes of assessable income
for ordinary life assurance companies (working from the highest to the lowest)
and (where applicable) the corresponding classes of policy:
------------------------------------------------------------------------------
-- ORDINARY LIFE ASSURANCE COMPANIES - ASSESSABLE INCOME CLASSES
Assessable income class Policy class
------------------------------------------------------------------------------
NCS (Non-Complying Superannuation) NCS policy
CS/RA (Complying Superannuation/Roll-over Annuity) CS policy or
RA
policy
Non-fund
AD/RLA (Accident, Disability/Residual Life Assurance) AD/RLA policy
"(2) The following table sets out the classes of assessable income for
SGIOs (with the higher class first) and the corresponding classes of policy:
SGIOs - ASSESSABLE INCOME CLASSES
------------------------------------------------------------------------------
Assessable income class Policy
class
------------------------------------------------------------------------------
NCS (Non-Complying Superannuation) NCS policy
CS/RA (Complying Superannuation/Roll-over Annuity) CS policy or
RA
policy
Notional Part IIIA disposals of fund assets
"116CB. (1) The core amounts for a notional Part IIIA disposal of a fund
asset are as follows:
(a) any ordinary 25/25A amount;
(b) any ordinary 51/52 amount;
(c) any modified 25/25A amount;
(d) any modified 51/52 amount;
(e) any ordinary 160Z gain amount;
(f) any ordinary 160Z loss amount;
(g) any modified 160Z gain amount;
(h) any modified 160Z loss amount.
"(2) For the purposes of subsection (3), the core amounts for a notional
Part IIIA disposal of a fund asset shall be distributed between the classes of
fund assessable income using the formula:
Liabilities for class
Core amount X ---------------------
Total liabilities
where:
Core amount is the core amount;
Liabilities for class is so much of the calculated liabilities of the
company at the end of the year of income as, in the opinion of the
Commissioner, is referable to policies of the class concerned that are
included in the fund in which the asset was included immediately before
disposal;
Total liabilities is so much of the calculated liabilities of the company at
the end of the year of income as, in the opinion of the Commissioner, is
referable to all policies included in that fund (other than exempt policies).
"(3) The following provisions apply to the core amounts for a notional Part
IIIA disposal of a fund asset:
(a) for an ordinary 25/25A amount:
(i) so much as is distributed to the CS/RA class shall not be
included in assessable income; and
(ii) so much as is distributed to any other class continues to be
included in assessable income and is allocated to that class;
(b) for an ordinary 51/52 amount:
(i) so much as is allocated to the CS/RA class is not allowable
as a deduction; and
(ii) so much as is allocated to any other class continues to be
allowable as a deduction and shall be taken for the purposes of section 116CF
to relate exclusively to assessable income of the class concerned;
(c) for a modified 25/25A amount:
(i) so much as is distributed to the CS/RA class shall be
included in assessable income and is allocated to that class; and
(ii) so much as is distributed to any other class shall not be
included in assessable income;
(d) for a modified 51/52 amount:
(i) so much as is distributed to the CS/RA class is allowable as
a deduction and shall be taken for the purposes of section 116CF to relate
exclusively to that class; and
(ii) so much as is distributed to any other class is not allowable
as a deduction;
(e) so much of any ordinary 160Z gain amount or ordinary 160Z loss amount as
is distributed to a class other than the CS/RA class is taken into account in
determining the overall 160Z gain or overall 160Z loss for the class
concerned;
(f) so much of any modified 160Z gain amount or modified 160Z loss amount as
is distributed to the CS/RA class is taken into account in determining the
overall 160Z gain or overall 160Z loss for that class.
"(4) In this section:
'policy' means:
(a) a life assurance policy; or
(b) an AD policy.
Notional Part IIIA disposals of non-fund assets
"116CC. (1) The core amounts for a notional Part IIIA disposal of a non-fund
asset are as follows:
(a) any ordinary 25/25A amount;
(b) any ordinary 51/52 amount;
(c) any ordinary 160Z gain amount;
(d) any ordinary 160Z loss amount.
"(2) The following provisions apply to the core amounts for a notional Part
IIIA disposal of a non-fund asset:
(a) the whole of any ordinary 25/25A amount continues to be included in
assessable income and is allocated to the non-fund class;
(b) the whole of any ordinary 51/52 amount continues to be allowable as a
deduction and shall be taken for the purposes of section 116CF to relate
exclusively to the non-fund class;
(c) the whole of any ordinary 160Z gain amount or ordinary 160Z loss amount
is taken into account in determining the overall 160Z gain or overall 160Z
loss for the non-fund class.
Assessable income etc. in relation to 160Z gain amounts
"116CD. (1) Nothing shall be included in the assessable income of a life
assurance company under section 160ZO.
"(2) The assessable income of each class shall include the amount (if any)
that is left over after the overall 160Z gain for that class has been reduced
in accordance with this section.
"(3) If there is an overall 160Z loss for a particular class of assessable
income, the loss shall be applied successively in reduction of overall 160Z
gains for the remaining classes, working from the lowest remaining class with
an overall 160Z gain to the highest remaining class with an overall 160Z gain.
"(4) If there are overall 160Z losses for 2 or more classes, subsection (3)
applies successively to those classes, working from the lowest class to the
highest class.
"(5) In the case of an ordinary life assurance company, any prior year Part
IIIA loss for the immediately preceding year of income shall be applied in
reduction of residual overall 160Z gains for the classes of assessable income
in the following order:
(a) non-fund;
(b) AD/RLA;
(c) CS/RA;
(d) NCS.
"(6) In the case of an SGIO, any prior year Part IIIA loss for the
immediately preceding year of income shall be applied in reduction of residual
overall 160Z gains for the classes of assessable income in the following
order:
(a) CS/RA;
(b) NCS.
"(7) A reference in section 51AAA to an amount included in assessable income
under section 160ZO includes a reference to an amount included in assessable
income under subsection (2) of this section.
"(8) For the purposes of Part IIIA, a life assurance company shall not be
taken to have incurred any net capital loss in respect of the year of income
under section 160ZC.
Amount of assessable income in particular class
"116CE. (1) The NCS class of assessable income consists of:
(a) any assessable income allocated to that class under subsection 116CB (3)
or section 116CD; and
(b) any assessable income allocated to that class under subsection (5) of
this section.
"(2) The non-fund class of assessable income consists of:
(a) any assessable income allocated to that class under subsection 116CC (2)
or section 116CD; and
(b) any other non-fund assessable income.
"(3) The AD/RLA class of assessable income consists of:
(a) any assessable income allocated to that class under subsection 116CB (3)
or section 116CD;
(b) any assessable income allocated to that class under subsection (5) of
this section; and
(c) AD premiums.
"(4) The CS/RA class of assessable income consists of:
(a) any assessable income allocated to that class under subsection 116CB (3)
or section 116CD;
(b) any assessable income allocated to that class under subsection (5) of
this section;
(c) amounts included in assessable income under section 275; and
(d) specified roll-over amounts paid to the company in the year of income.
"(5) Each amount of assessable income derived from assets included in a
particular one of the insurance funds (other than notional Part IIIA disposals
income) shall be allocated between the classes of fund assessable income using
the formula:
Liabilities for class
Income x ---------------------
Total liabilities
where:
Income is the amount of the assessable income to be allocated;
Liabilities for class is so much of the calculated liabilities of the
company at the end of the year of income as, in the opinion of the
Commissioner, is referable to policies of the class concerned that are
included in the fund;
Total liabilities is so much of the calculated liabilities of the company at
the end of the year of income as, in the opinion of the Commissioner, is
referable to all policies included in the fund (other than exempt policies).
"(6) In this section, 'policy' means:
(a) a life assurance policy; or
(b) an AD policy.
Apportionment of current year deductions between classes
"116CF. (1) Current year deductions or notional Part IIIA disposals
deductions that relate exclusively to a particular class of assessable income
shall be allocated to that class of assessable income.
"(2) To each class of assessable income there shall be allocated an amount
of deductions calculated using the formula:
Income of class
Residual current deductions x ---------------
Total income
where:
Residual current deductions is the total of the current year deductions,
other than those to which subsection (1) applies;
Income of class is the number of dollars in the assessable income of the
class concerned (other than amounts included in assessable income under
section 116CD);
Total income is the number of dollars in the total assessable income (other
than amounts included in assessable income under section 116CD). Application
of deficit arising for a particular class
"116CG. (1) If there is a deficit for a particular class of assessable
income, the deficit shall be applied successively in reduction of current
surpluses for the remaining classes, working from the lowest remaining class
with a current surplus to the highest remaining class with a current surplus.
"(2) If there are deficits for 2 or more classes, subsection (1) applies
successively to those classes, working from the lowest class to the highest
class.
Deduction of prior year losses
"116CH. (1) In the case of an ordinary life assurance company, prior year
loss deductions shall be applied in reduction of residual current surpluses
for the classes of assessable income in the following order:
(a) non-fund;
(b) AD/RLA;
(c) CS/RA;
(d) NCS.
"(2) In the case of an SGIO, prior year loss deductions shall be applied in
reduction of residual current surpluses for the classes of assessable income
in the following order:
(a) CS/RA;
(b) NCS.
"(3) If there are prior year loss deductions of 2 or more of the kinds
specified in section 80AB, those deductions shall be taken into account under
this section in the order determined by section 80AB.
Components of taxable income
"116CJ. The component of taxable income for a particular class of assessable
income is the amount (if any) that is left over after the assessable income of
that class has been reduced in accordance with sections 116CF, 116CG and
116CH.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 21
Interpretation
21. Section 116E of the Principal Act is amended:
(a) by inserting "an RA policy, a superannuation policy," before "a sickness
policy" in the definition of "eligible insurance policy" in subsection (1);
(b) by omitting "to a natural person" from the definition of "immediate
annuity" in subsection (1);
(c) by omitting from subsection (1) the definition of "eligible policy" and
substituting the following definition:
"'eligible policy' has the same meaning as in Division 8;";
(d) by inserting in subsection (1) the following definition:
"'class', in relation to assessable income, means a class specified
in section 116G;
'CS policy' has the same meaning as in Division 8;
'CS/RA assessable income', in relation to a registered
organization in relation to a year of income, means so much of the total
income (other than exempt premiums) of the organization of the year of income
as is derived from CS/RA business of the organization;
'CS/RA asset' means an asset that relates to the CS/RA business;
'CS/RA business' means business of, or in relation to, the issuing
of, or the undertaking of liability under:
(a) CS policies; or
(b) RA policies;
'CS/RA component' means the component of the taxable income
determined under section 116HE for the CS/RA class;
'current surplus', in relation to a class of assessable income,
means:
(a) the amount by which the assessable income of that
class exceeds the deductions allocated to that class under section 116HB; or
(b) if an amount has been applied under section 116HC
in reduction of a current surplus previously calculated under this definition
- the amount by which that previous surplus exceeds the amount so applied
under section 116HC;
'current year deduction' means an allowable deduction other
than:
(a) a notional Part IIIA disposals deduction; or
(b) a prior year loss deduction;
'deficit', in relation to a class of assessable income, means the
amount by which the assessable income of that class is less than the
deductions allocated to that class under section 116HB;
'EIB assessable income', in relation to a registered organization
in relation to a year of income, means so much of the total income (other than
premiums) of the organization of the year of income as is derived from
eligible insurance business of the organization;
'EIB asset' means an asset that relates to the eligible insurance
business;
'EIB component' means the component of the taxable income
determined under section 116HE for the EIB class;
'eligible termination payment' has the same meaning as in
Subdivision AA of Division 2;
'exempt premium' means a premium other than a specified
rollover amount;
'modified 25/25A amount', in relation to a disposal of an asset,
means any amount that would (apart from section 116GA) be included in
assessable income under section 25 or 25A in respect of the disposal if
Division 10 of Part IX applied in respect of the disposal;
'modified 51/52 amount', in relation to a disposal of an asset,
means any amount that would (apart from section 116GA) be allowable as a
deduction under section 51 or 52 in respect of the disposal if Division 10 of
Part IX applied in respect of the disposal;
'modified 160Z gain amount', in relation to a disposal of an
asset, means any capital gain that would (apart from this Division) be deemed
for the purposes of Part IIIA to have accrued in respect of the disposal of
the asset if Division 10 of Part IX applied in respect of the disposal;
'modified 160Z loss amount', in relation to a disposal of an
asset, means any capital loss that would (apart from this Division) be deemed
for the purposes of Part IIIA to have been incurred in respect of the disposal
of the asset if Division 10 of Part IX applied in respect of the disposal;
'NCS assessable income', in relation to a registered organization
in relation to a year of income, means so much of the total income (other than
premiums) of the organization of the year of income as is derived from NCS
business of the organization;
'NCS asset' means an asset that relates to the NCS business;
'NCS business' means business of, or in relation to, the issuing
of, or the undertaking of liability under, NCS policies;
'NCS component' means the component of the taxable income
determined under section 116HE for the NCS class;
'NCS policy' has the same meaning as in Division 8;
'notional Part IIIA disposal' means a disposal (within the meaning
of Part IIIA) of an asset (within the meaning of that Part), being:
(a) a disposal to which that Part applies; or
(b) a disposal to which that Part would apply if:
(i) section 160ZZF and Divisions 5A and 17 of that
Part were disregarded; and
(ii) subsection 306 (1) applied to the asset concerned;
'notional Part IIIA disposals deduction' means so much of an
ordinary 51/52 amount or modified 51/52 amount as is allowable as a
deduction;
'ordinary 25/25A amount' means any amount that would (apart
from section 116GA) be included in assessable income under section 25 or 25A
in respect of a notional Part IIIA disposal;
'ordinary 51/52 amount' means any amount that would (apart
from section 116GA) be allowable as a deduction under section 51 or 52 in
respect of a notional Part IIIA disposal;
'ordinary 160Z gain amount', in relation to a disposal of an
asset, means any capital gain that would (apart from this Division) be deemed
for the purposes of Part IIIA to have accrued in respect of the disposal of
the asset;
'ordinary 160Z loss amount', in relation to a disposal of an asset,
means any capital loss that would (apart from this Division) be deemed for the
purposes of Part IIIA to have been incurred in respect of the disposal of the
asset;
'overall 160Z gain' means:
(a) for the CS/RA class - the amount by which the total
modified 160Z gain amount for that class exceeds the total modified 160Z loss
amount for that class;
(b) for any other class - the amount by which the total
ordinary 160Z gain amount for that class exceeds the total ordinary 160Z loss
amount for that class;
or, if an amount has been applied under subsection 116GB (3) in reduction of
an overall 160Z gain previously calculated under this definition - the amount
by which that previous overall 160Z gain exceeds the amount so applied under
that subsection;
'overall 160Z loss' means:
(a) for the CS/RA class - the amount by which the total
modified 160Z gain amount for that class is less than the total modified 160Z
loss amount for that class; or
(b) for any other class - the amount by which the total
ordinary 160Z gain amount for that class is less than the total ordinary 160Z
loss amount for that class;
'prior year loss deduction' means a deduction allowable under
section 80, 80AAA or 80AA;
'prior year Part IIIA loss', in relation to a year of income (in
this definition called the 'loss year'), means the amount (if any) by which
the sum of:
(a) the total of the overall 160Z losses for all the classes
of assessable income for the loss year; and
(b) any prior year Part IIIA loss calculated under this
definition for the year of income immediately preceding the loss year;
exceeds the total of the overall 160Z gains (before any application of section
116GB) for all the classes of assessable income;
'RA policy' has the same meaning as in Division 8;
'residual current surplus', means:
(a) so much of a current surplus as remains after the
application of section 116HC; or
(b) if an amount has been applied under section 116HD
in reduction of a residual current surplus previously calculated under this
definition - the amount by which that previous residual current surplus
exceeds the amount so applied under section 116HD;
'residual overall 160Z gain' means so much of an overall 160Z
gain as remains after the application of subsection 116GB (3);
'specified roll-over amount', in relation to a registered
organization, means so much of an amount paid to the organization on or after
1 July 1988 as constitutes a roll-over of some or all of the untaxed element
of the post-June 83 component (within the meaning of Subdivision AA of
Division 2) of an eligible termination payment;
'superannuation premiums' means premiums received in respect
of superannuation policies;
'total modified 160Z gain amount', in relation to the CS/RA
class of assessable income, means the total of so much of any modified 160Z
gain amounts as has been allocated to that class under section 116GA;
'total modified 160Z loss amount', in relation to the CS/RA
class of assessable income, means the total of so much of any modified 160Z
loss amounts as has been allocated to that class under section 116GA;
'total ordinary 160Z gain amount', in relation to a class of
assessable income, means the total of so much of any ordinary 160Z gain
amounts as has been allocated to that class under section 116GA;
'total ordinary 160Z loss amount', in relation to a class of
assessable income, means the total of so much of any ordinary 160Z loss
amounts as has been allocated to that class under section 116GA;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 22
22. After section 116F of the Principal Act the following sections are
inserted:
Exemption of CS/RA income that accrued before 1 July 1988
"116FA. Of each amount derived by a registered organization in the year of
income that would, apart from this section and section 116FB, be included in
the CS/RA class of assessable income, so much of the amount as accrued to the
registered organization before 1 July 1988 is exempt from tax.
Current pension liabilities exemption
"116FB. (1) If the Commissioner is satisfied that a percentage of the
notional CS/RA amount of a registered organization would have been exempt from
tax under section 282B or 283 if the notional CS/RA amount had been derived
instead by the holders of CS policies issued by the organization, that
percentage of the notional CS/RA amount is exempt from tax.
"(2) In this section:
'notional CS/RA amount' means the amount that, apart from this
section, would be the CS/RA class of assessable income.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 23
23. Section 116G of the Principal Act is repealed and the following sections
are substituted:
Assessable income of registered organizations
"116G. (1) The classes of assessable income of a registered organization are
as follows (set out working from the highest class to the lowest class):
(a) NCS (Non-Complying Superannuation);
(b) CS/RA (Complying Superannuation/Roll-over Annuity);
(c) EIB (Eligible Insurance Business).
"(2) The assessable income of the year of income of a registered
organization shall not include any assessable income that does not come within
the classes specified in subsection (1).
Notional Part IIIA disposals of assets
"116GA. (1) The core amounts for a notional Part IIIA disposal of an asset
are as follows:
(a) any ordinary 25/25A amount;
(b) any ordinary 51/52 amount;
(c) any modified 25/25A amount;
(d) any modified 51/52 amount;
(e) any ordinary 160Z gain amount;
(f) any ordinary 160Z loss amount;
(g) any modified 160Z gain amount;
(h) any modified 160Z loss amount.
"(2) The following provisions apply to the core amounts for a disposal of a
CS/RA asset:
(a) for an ordinary 25/25A amount - the amount shall not be included in
assessable income;
(b) for an ordinary 51/52 amount - the amount is not allowable as a
deduction;
(c) for a modified 25/25A amount - the amount shall be included in
assessable income and is allocated to the CS/RA class;
(d) for a modified 51/52 amount - the amount is allowable as a deduction and
shall be taken for the purposes of section 116HB to relate exclusively to the
CS/RA class;
(e) any ordinary 160Z gain amount or ordinary 160Z loss amount shall be
disregarded;
(f) any modified 160Z gain amount or modified 160Z loss amount is taken into
specified amount of taxable contributions made to the fund;
(b) the notice is lodged with the Commissioner on or before the date
of lodgment of the return of income of the fund for the year of
income, or before such later date as the Commissioner allows; and
(c) the Commissioner considers it likely that the anticipated notice or
anticipated notices will be given and that there will be a pre-1 July
88 funding credit balance of the fund of the specified amount as at
the beginning of the last day of the year of income;
the Commissioner may make the assessment as if:
(d) there were a pre-1 July 88 funding credit balance of the fund of
the specified amount as at the beginning of the last day of the year
of income;
(e) an election had been made by the trustee, in accordance with section
275B, that subsection 275B (1) should apply for the year of income
in relation to an amount, being the least of the following amounts:
(i) the amount referred to in subparagraph (a) (i);
(ii) the amount referred to in subparagraph (a) (ii);
(iii) the amount referred to in paragraph 275B (2) (b); and
(f) the requirements of subsection 275B (2) were satisfied.
"(2) Where:
(a) the Commissioner makes the assessment; and
(b) either:
(i) the Insurance and Superannuation Commissioner has not
received:
(A) if the anticipated notice, or any of the anticipated
notices, is a notice under subsection 15D (2) of the
OSS Act - the application, certificates, other
documents and fee referred to in subsection 15D (3)
of that Act in relation to the fund by the end of 12
months after the Commissioner of Taxation makes
the assessment, or by 31 December 1991, whichever
is the earlier; and
(B) if the anticipated notice, or any of the anticipated
notices, is a notice under subsection 15D (7) of the
OSS Act - any thing required to be given in relation
to the notice under regulations for the purposes of
that subsection by the end of 12 months after the
Commissioner of Taxation makes the assessment, or
by the time by which the thing is required by the
regulations to be given, whichever is the earlier; or
(ii) the Commissioner of Taxation becomes satisfied that the
anticipated notice or any of the anticipated notices will not
be given, or that there will not be a pre-1 July 88 funding
credit balance of the fund of the specified amount referred
to in paragraph (1) (c) as at the beginning of the last day
of the year of income;
then, notwithstanding section 170 of this Act, the Commissioner of Taxation
may amend the assessment for the purpose of ensuring that this Act has
effect as if the application of subsection (1) in relation to the fund for
the
year of income were disregarded.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 63
63. After section 301 of the Principal Act the following Division is
inserted:
"Division 10 - Tax Treatment of Gains or Losses on Disposal of Assets
Owned by Complying Superannuation Funds, Complying ADFs and PSTs
Division applies to trustees of complying superannuation funds, complying ADFs
and PSTs
"302. This Division applies to a taxpayer in relation to a year of income if
the taxpayer is the trustee of:
(a) a complying superannuation fund;
(b) a complying ADF; or
(c) a PST.
Interpretation
"303. (1) In this Division, unless the contrary intention appears:
'security' means:
(a) debenture stock, a bond, debenture, certificate of entitlement,
bill of exchange, promissory note or other security;
(b) a deposit with a bank, building society or other financial
institution;
(c) a secured or unsecured loan; or
(d) any other contract, whether or not in writing, under which
a person is liable to pay an amount or amounts, whether or
not the liability is secured;
'30 June 1988 asset', in relation to a taxpayer, means an asset owned by
the taxpayer at the end of 30 June 1988.
"(2) For the purposes of the application of this Division to a taxpayer
in relation to a year of income, a reference in this Division to the
taxpayer,
in relation to a time before the beginning of the year of income, includes a
reference to the taxpayer concerned even if the fund or unit trust was not
a complying superannuation fund, a complying ADF or a PST, as the case
may be, in relation to the year of income in which that time occurred.
"(3) An expression used in this Division and in Part IIIA has the same
meaning in this Division as it has in that Part.
Part IIIA to be primary code for taxation of gains and losses
"304. Where Part IIIA applies or would, apart from section 160ZZF and
Divisions 5A, 7A and 17 of that Part, apply, in respect of the disposal of an
asset that, immediately before the disposal, was owned by a taxpayer:
(a) an amount shall not be included in the assessable income of the
taxpayer under section 25 in respect of the disposal unless:
(i) the asset is a security; or
(ii) the amount is a gain attributable to currency exchange rate
fluctuations;
(b) sections 25A and 52 do not apply in respect of the disposal of the
asset; and
(c) an amount shall not be allowed as a deduction under section 51 to
the taxpayer in respect of the disposal unless:
(i) the asset is a security; or
(ii) the amount is a loss attributable to currency exchange rate
fluctuations.
Division to be treated as a provision of Part IIIA
"305. For the purposes of the application of Part IIIA to a taxpayer,
where the expression 'provision of this Part' or 'provisions of this Part' is
used in that Part, the expression shall be taken to include a reference to
any of the provisions of this Division.
30 June 1988 assets deemed to have been acquired on that date
"306. (1) Subject to this section, a 30 June 1988 asset of a taxpayer
shall be taken, for the purposes of Part IIIA, to have been acquired by the
taxpayer on 30 June 1988.
"(2) Where a provision of Part IIIA provides that, if a disposal of an
asset occurs within 12 months after the day (in this subsection called the
'acquisition day') on which the asset was acquired by a taxpayer, a reference
in another provision of that Part to the indexed cost base to the taxpayer
in respect of the asset shall be construed as a reference to the cost base to
the taxpayer in respect of the asset, subsection (1) of this section does not
apply for the purposes of determining the acquisition day for the purposes
of the first-mentioned provision.
"(3) Subsection (1) does not apply for the purposes of determining the
cost base to a taxpayer of an asset.
Disposal of taxable Australian assets
"307. Section 160T applies in relation to a taxpayer as if a reference
in that section to 19 September 1985 were a reference to 30 June 1988.
Cost base of 30 June 1988 asset
"308. (1) The taxpayer shall be taken, for the purposes of Part IIIA:
(a) to have paid or given as consideration in respect of the acquisition
of a 30 June 1988 asset of the taxpayer an amount equal to:
(i) for the purpose of ascertaining whether a capital gain accrued
to the taxpayer in respect of the disposal of the asset by the
taxpayer:
(A) the market value of the asset as at the end of 30
June 1988; or
(B) if the cost base to the taxpayer of the asset as at 30
June 1988 is greater than that market value - that
cost base; or
(ii) for the purpose of ascertaining whether the taxpayer incurred
a capital loss in respect of the disposal of the asset by the
taxpayer:
(A) the market value of the asset as at the end of 30
June 1988; or
(B) if that market value is greater than the amount of
the cost base to the taxpayer of the asset as at 30
June 1988 - that cost base; and
(b) to have paid or given that consideration on 30 June 1988.
"(2) In determining the cost base, indexed cost base or reduced cost
base to the taxpayer of an asset, no account shall be taken of any liability
that arose before 1 July 1988 or any costs or expenditure that were incurred
before 1 July 1988 unless the liability, costs or expenditure consists of
consideration that, under subsection (1), is taken to have been paid or given
on 30 June 1988.
Market value of stock exchange listed assets
"309. (1) Where:
(a) a 30 June 1988 asset of a taxpayer was listed on an Australian
stock exchange on 30 June 1988; and
(b) on that date, identical assets were:
(i) computer traded on a national market; or
(ii) traded on a State capital city market;
the market value of the asset as at the end of 30 June 1988 shall be taken,
for the purposes of this Division, to be the average of the highest and
lowest
trade prices for identical assets recorded on 30 June 1988 in whichever of
the following markets is applicable:
(c) if, on that date, identical assets were computer traded on a national
market - that national market;
(d) if, on that date, there was a State capital city market (other than
the Sydney market) that recorded a higher volume of trading than
the Sydney market in identical assets - that State capital city market;
(e) in any other case - the Sydney market.
"(2) For the purposes of this section, an asset shall be taken to have
been listed on an Australian stock exchange on 30 June 1988 if, and only
if, on that date the asset had the status of having been granted official
quotation by a securities exchange within the meaning of the Securities
Industry Act 1980 or the law of a State or Territory corresponding to that
Act.
Adjustment of cost base as at 30 June 1988 - return of capital
"310. (1) The following provisions have effect for the purposes of this
Division.
"(2) Where:
(a) 30 June 1988 assets of a taxpayer consist of shares in a company;
and
(b) at any time during the period commencing at the time when the
taxpayer acquired the shares and ending at the end of 30 June 1988,
the company paid an amount that was not a dividend to the
taxpayer in respect of the shares;
the cost base to the taxpayer of the shares as at 30 June 1988 shall be
reduced by that amount.
"(3) Where:
(a) a 30 June 1988 asset of a taxpayer consists of an interest or unit in
a trust; and
(b) at any time during the period commencing at the time when the
taxpayer acquired the interest or unit and ending at the end of 30
June 1988, the trustee of the trust paid an amount to the taxpayer
in respect of the interest or unit, being:
(i) in a case where the taxpayer was exempt from tax for the
year of income in which the payment was made - an amount
that, if the taxpayer had not been exempt from tax, would
not have been assessable income of the taxpayer; or
(ii) in any other case - an amount that would not have been
assessable income of the taxpayer;
the cost base to the taxpayer of the interest or unit as at 30 June 1988
shall
be reduced by so much of the amount as is not attributable to a deduction
allowed under Division 10C or 10D of Part III.
Rights to acquire shares or share options
"311. (1) Notwithstanding section 160ZYO, where a taxpayer, as a
shareholder, exercises rights as mentioned in subsection 160ZYO (2) and
those rights are 30 June 1988 assets of the taxpayer, the taxpayer shall be
taken, for the purposes of Part IIIA, to have paid or given as consideration
in respect of the acquisition of the new shares or the option concerned an
amount equal to:
(a) for the purpose of ascertaining whether a capital gain accrued to
the taxpayer in respect of the disposal by the taxpayer of the new
shares or the option or the shares to which the option relates - the
sum of the amount paid in respect of the exercise of the rights and:
(i) the market value of the rights as at the end of 30 June 1988;
or
(ii) if the cost base to the taxpayer of the rights as at 30 June
1988 is greater than that market value - that cost base; or
(b) for the purpose of ascertaining whether the taxpayer incurred a
capital loss in respect of the disposal by the taxpayer of the new
shares or the option or the shares to which the option relates - the
sum of the amount paid in respect of the exercise of the rights and:
(i) the market value of the rights as at the end of 30 June 1988;
or
(ii) if that market value is greater than the amount of the cost
base to the taxpayer of the rights as at 30 June 1988 - that
cost base.
"(2) So much of that consideration as is covered by subparagraph
(1) (a) (i) or (ii) or (b) (i) or (ii), as the case requires, shall be taken
to
have been paid or given on 30 June 1988.
Rights to acquire units or unit options
"312. (1) Notwithstanding section 160ZYQE, where a taxpayer, as a
unitholder, exercises rights as mentioned in subsection 160ZYQE (2) and
those rights are 30 June 1988 assets of the taxpayer, the taxpayer shall be
taken, for the purposes of Part IIIA, to have paid or given as consideration
in respect of the acquisition of the new units or the option concerned an
amount equal to:
(a) for the purpose of ascertaining whether a capital gain accrued to
the taxpayer in respect of the disposal by the taxpayer of the new
units or the option or the units to which the option relates - the
sum of the amount paid in respect of the exercise of the rights and:
(i) the market value of the rights as at the end of 30 June 1988;
or
(ii) if the cost base to the taxpayer of the rights as at 30 June
1988 is greater than that market value - that cost base; or
(b) for the purpose of ascertaining whether the taxpayer incurred a
capital loss in respect of the disposal by the taxpayer of the new
units or the option or the units to which the option relates - the
sum of the amount paid in respect of the exercise of the rights and:
(i) the market value of the rights as at the end of 30 June 1988;
or
(ii) if that market value is greater than the amount of the cost
base to the taxpayer of the rights as at 30 June 1988 - that cost base.
"(2) So much of that consideration as is covered by subparagraph
(1) (a) (i) or (ii) or (b) (i) or (ii), as the case requires, shall be taken
to
have been paid or given on 30 June 1988.
Company-issued options to acquire unissued shares
"313. (1) Notwithstanding section 160ZYV, where a taxpayer, as a
shareholder, exercises an option as mentioned in subsection 160ZYV (2) and
that option is a 30 June 1988 asset of the taxpayer, the taxpayer shall be
taken, for the purposes of Part IIIA, to have paid or given as consideration
in respect of the acquisition of the new shares concerned an amount equal
to:
(a) for the purpose of ascertaining whether a capital gain accrued to
the taxpayer in respect of the disposal by the taxpayer of the new
shares - the sum of the amount paid in respect of the exercise of
the option and:
(i) the market value of the option as at the end of 30 June
1988; or
(ii) if the cost base to the taxpayer of the option as at 30 June
1988 is greater than that market value - that cost base; or
(b) for the purpose of ascertaining whether the taxpayer incurred a
capital loss in respect of the disposal by the taxpayer of the new
shares - the sum of the amount paid in respect of the exercise of
the option and:
(i) the market value of the option as at the end of 30 June 1988; or
(ii) if that market value is greater than the amount of the cost
base to the taxpayer of the option as at 30 June 1988 - that cost base.
"(2) So much of that consideration as is covered by subparagraph
(1) (a) (i) or (ii) or (b) (i) or (ii), as the case requires, shall be taken
to
have been paid or given on 30 June 1988.
Unit trust-issued options to acquire unissued units
"314. (1) Notwithstanding section 160ZYXE, where a taxpayer, as a
unitholder, exercises an option as mentioned in subsection 160ZYXE (2) and
that option is a 30 June 1988 asset of the taxpayer, the taxpayer shall be
taken, for the purposes of Part IIIA, to have paid or given as consideration
in respect of the acquisition of the new units concerned an amount equal
to:
(a) for the purpose of ascertaining whether a capital gain accrued to
the taxpayer in respect of the disposal by the taxpayer of the new
units - the sum of the amount paid in respect of the exercise of the
option and:
(i) the market value of the option as at the end of 30 June 1988; or
1988; or
(ii) if the cost base to the taxpayer of the option as at 30 June
1988 is greater than that market value - that cost base; or
(b) for the purpose of ascertaining whether the taxpayer incurred a
capital loss in respect of the disposal by the taxpayer of the new
units - the sum of the amount paid in respect of the exercise of the
option and:
(i) the market value of the option as at the end of 30 June
1988; or
(ii) if that market value is greater than the amount of the cost
base to the taxpayer of the option as at 30 June 1988 - that
cost base.
"(2) So much of that consideration as is covered by subparagraph
(1) (a) (i) or (ii) or (b) (i) or (ii), as the case requires, shall be taken
to
have been paid or given on 30 June 1988.
Options
"315. (1) Subsection 160ZZC (3A) applies in relation to an option
granted by a taxpayer as if a reference in that subsection to 20 September
1985 were a reference to 1 July 1988.
"(2) Subsection 160ZZC (9) does not apply to an option granted to a
taxpayer.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 64
64. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) The amendments made by section 5 (other than paragraph (o)) and sections
6, 7, 8, 26, 28 and 42 apply to assessments in respect of income of the year
of income commencing on 1 July 1988 and of all subsequent years of income.
(3) The amendments made by section 11 apply in relation to contributions
made on or after 1 July 1988.
(4) Subject to this section, the amendments made by sections 12 to 24
(inclusive) apply to assessments in respect of income of the year of income in
which 1 July 1988 occurred and of all subsequent years of income.
(5) Section 111C of the amended Act applies to assessments in respect of
income of the year of income commencing on 1 July 1988 and of all subsequent
years of income.
(6) Subsection 113 (4) of the amended Act applies in relation to expenditure
incurred after 25 May 1988.
(7) The amendments made by sections 9, 10, 25 and 29 to 36 (inclusive) apply
in relation to dividends paid on or after 1 July 1988.
(8) The amendments made by section 27 apply to amounts received (within the
meaning of section 26AH of the amended Act) on or after 1 July 1989.
(9) Sections 111B and 116GC and Division 7A of Part IIIA of the amended Act
apply to disposals of assets on or after 1 July 1988.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 65
65. (1) In this section:
"amended Act" means the Principal Act as amended by this Act;
"income" includes assessable income;
"LAC/RO amendments" means the amendments made by sections 12 to 24
(inclusive), to the extent that the amendments apply to assessments in respect
of income of the 1 July 1988 year or a subsequent year of income;
"life assurance company" has the same meaning as in Division 8 of Part III
of the amended Act;
"1 July 1988 year" means the year of income in which 1 July 1988 occurred;
"pre-1 July 1988 deductions", in relation to a taxpayer, in relation to the
1 July 1988 year, means the deductions that are allowable or would be
allowable but for paragraph (2) (c) for that year, reduced by:
(a) the deductions allowable under paragraph (2) (e); and
(b) the sum of the amounts that, under paragraph (2) (f), are
taken to be allowable deductions for the purposes of the definitions referred
to in that paragraph;
"registered organization" has the same meaning as in Division 8A of Part III
of the amended Act.
(2) Where:
(a) a taxpayer is:
(i) a life assurance company; or
(ii) a registered organization; and
(b) any part of the taxpayer's 1 July 1988 year occurred before 1 July
1988;
the following provisions have effect:
(c) the LAC/RO amendments do not apply to income derived by the taxpayer
before 1 July 1988;
(d) a reference in the definition of "notional Part IIIA disposal" in
subsection 110 (1) or 116E (1) of the amended Act to the disposal of an asset
by the taxpayer does not include a reference to a disposal of an asset that
took place before 1 July 1988;
(e) where a particular amount (in this paragraph called the "deductible
amount"):
(i) is allowable, or would be allowable but for paragraph (c),
as a deduction in calculating the taxable income of the taxpayer of the 1 July
1988 year; and
(ii) if the LAC/RO amendments had not been made, would not
have been allowable as a deduction to the taxpayer in respect of the 1 July
1988 year;
only so much of the deductible amount as the Commissioner considers reasonable
is allowable as a deduction in calculating the taxable income of the taxpayer
of the 1 July 1988 year;
(f) where a particular amount (in this paragraph called the "deductible
amount"):
(i) is allowable, or would be allowable but for paragraph (c),
as a deduction in calculating the taxable income of the taxpayer of the 1 July
1988 year; and
(ii) if the LAC/RO amendments had not been made, would
have been allowable as a deduction in calculating the taxable income of the
taxpayer of the 1 July 1988 year;
only so much of the deductible amount as the Commissioner considers reasonable
shall be taken to be an allowable deduction for the purposes of the
definitions of "current year deduction" and "prior year loss deduction" in
subsection 110 (1) or 116E (1) of the amended Act, as the case requires;
(g) for the purposes of this section and the Income Tax Rates Act 1986, the
pre-1 July 1988 component of taxable income of the taxpayer's 1 July 1988 year
is the amount (if any) that is left over after the assessable income derived
by the taxpayer in that year and before 1 July 1988 has been reduced by the
pre-1 July 1988 deductions;
(h) the taxable income of the taxpayer's 1 July 1988 year is the sum of:
(i) the pre-1 July 1988 component; and
(ii) the components ascertained under section 116CJ or 116HE
of the amended Act for that year;
(j) if a net capital loss would have been incurred by a taxpayer under Part
IIIA of the amended Act in respect of the taxpayer's 1 July 1988 year if that
year had ended on 30 June 1988, the amount of that net capital loss shall be
applied by the Commissioner in reduction of the overall 160Z gain (within the
meaning of Division 8 or 8A of Part III of the amended Act) for a particular
class or classes of assessable income of the taxpayer by such amount, or by
such amounts and in such proportions, as the Commissioner considers
reasonable.
(3) In determining, for the purposes of subsection (2), whether income was
derived by a taxpayer before 1 July 1988, income that:
(a) is included in the assessable income of the taxpayer under subsection 92
(1) or Division 6 of Part III of the amended Act; or
(b) is derived by the taxpayer during, but not at a particular time during,
a year of income;
shall be taken to have been derived by the taxpayer at such time, or at such
times and in such proportions, as the Commissioner considers reasonable having
regard to:
(c) where paragraph (a) applies in respect of a partnership or a trust
estate - the time, or the times, when income was derived by the partnership or
by the trustee of the trust estate, as the case may be; and
(d) in any case - any relevant matters.
(4) In determining, for the purposes of subsection (2), the income derived
by a taxpayer before 1 July 1988 under Part IIIA of the amended Act, a
disposal of an asset on or after that date shall be disregarded.
(5) In the case of a life assurance company, sections 57AH and 57AL of the
Principal Act (as those sections continue to apply in spite of their repeal by
the Taxation Laws Amendment Act (No. 4) 1988) do not apply to a unit of
property that:
(a) is first used, or installed ready for use and held in reserve, by the
company before 1 July 1988; and
(b) is first used for the purpose of producing assessable income, or is
first installed ready for use for that purpose and held in reserve, by the
company on or after 1 July 1988.
(6) In the case of a life assurance company or registered organization whose
1 July 1988 year commenced on 1 July 1988, any net capital loss incurred by
the company or organization under Part IIIA of the Principal Act in respect of
the preceding year of income shall be taken to be a prior year Part IIIA loss
in relation to that preceding year for the purposes of Division 8 or 8A, as
the case requires, of Part III of the amended Act.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 67
67. In this Part, "Principal Act" means the Occupational Superannuation
Standards Act 1987.*2*
*2*No. 97, 1987, as amended. For previous amendments, see No. 138, 1987; and
No. 97, 1989.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 68
68. Section 3 of the Principal Act is amended:
(a) by omitting "or" from the end of paragraph (a) of the definition of
"reviewable decision" in subsection (1);
(b) by adding at the end of the definition of "reviewable decision" in
subsection (1) the following paragraphs:
"(c) a decision of the Commissioner refusing to give a notice
under subsection 15D (2) in relation to a fund; or
(d) a decision of the Commissioner to give a notice under
subsection 15D (6) in relation to a fund;";
(c) by inserting in subsection (1) the following definition:
"'governing rules', in relation to a fund or unit trust, means any
trust instrument, other document or legislation, or combination thereof,
governing the establishment and operation of the fund or unit trust;";
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 69
69. Section 7 of the Principal Act is amended by omitting from paragraph (2)
(n) "trust deeds" and substituting "governing rules".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 70
70. Section 8 of the Principal Act is amended by omitting from paragraph (2)
(h) "trust deeds" and substituting "governing rules".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 71
71. Section 8A of the Principal Act is amended by omitting from paragraph
(2) (h) "trust deeds" and substituting "governing rules".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 72
72. After section 15C of the Principal Act the following section is
inserted:
Pre-1 July 88 funding credits and debits
"15D. (1) The trustees of a fund may apply to the Commissioner for a
pre-1 July 88 funding credit.
"(2) If an application is made for a pre-1 July 88 funding credit, the
Commissioner shall give a notice in writing to the applicant granting a
pre-1 July 88 funding credit of a specified amount if the Commissioner
is satisfied that:
(a) the amount consists of, or is the aggregate of, amounts that, under
the regulations, are treated as pre-1 July 88 funding amounts; and
(b) paragraph 23 (jaa) or section 23FC of the Tax Act, as in force
immediately before the commencement of the Taxation Laws
Amendment Act (No. 2) 1989, would have applied to the fund in
relation to the year of income commencing on 1 July 1987, if the
amendments made by that last-mentioned Act had not been made.
"(3) An application:
(a) shall be in a form approved by the Commissioner, in writing, for
the purposes of this section;
(b) shall be made on or before 31 December 1991;
(c) shall contain such information relating to the fund as is required by
the form to be provided; and
(d) shall be accompanied by:
(i) such certificates and other documents as the form requires;
and
(ii) the prescribed application fee.
"(4) If:
(a) a prescribed event occurs or has occurred (whether before, on or
after the date of commencement of this section) in relation to a
fund, being an event that relates to:
(i) the membership of the fund; or
(ii) benefits provided by the fund; and
(b) the trustees of the fund fail to notify the Commissioner of the event
within the time and in the manner prescribed;
the Commissioner shall give notice in writing to the trustees of the fund
accordingly.
"(5) Regulations made for the purposes of paragraph (4) (b) may:
(a) require a notification to be accompanied by such information as is
prescribed; and
(b) enable the Commissioner to grant an extension of time for lodging
a notification.
"(6) If:
(a) an event prescribed for the purposes of paragraph (4) (a) occurs or
has occurred (whether before, on or after the date of commencement
of this section) in relation to a fund;
(b) the trustees of the fund notify the Commissioner of the event as
and when required by regulations made for the purposes of
paragraph (4) (b); and
(c) the Commissioner is satisfied that, in accordance with the regulations,
a pre-1 July 88 funding debit of a particular amount should arise in
relation to the fund;
the Commissioner may give to the trustees of the fund a notice in writing
granting the trustees of the fund a pre-1 July 88 funding debit of that
amount.
"(7) The regulations may make provision for and in relation to the
transfer of pre-1 July 88 funding credits between funds.
"(8) Without limiting the generality of subsection (7), the regulations
made for the purposes of that subsection shall make provision for:
(a) the giving by the Commissioner of a notice approving the transfer
of a pre-1 July 88 funding credit of a fund to another fund;
(b) the revocation of such a notice; and
(c) requiring notification of such a revocation and of the reasons for
the revocation.
"(9) If:
(a) the Commissioner has, under subsection (2) or (6), given a notice
to the trustees of a fund; and
(b) the Commissioner, after considering information that was not
previously considered by the Commissioner, ceases to be satisfied as
mentioned in the subsection concerned;
the Commissioner shall give notice in writing to the trustees of the fund
revoking the notice.
"(10) Where the Commissioner refuses an application under subsection
(1), the Commissioner shall give notice in writing to the applicant of the
refusal.
"(11) A notice under subsection (9) or (10) shall set out the reasons
for the revocation or refusal, as the case requires.
"(12) The Commissioner shall advise the Commissioner of Taxation of
particulars of all notices given under this section or under regulations made
for the purposes of subsection (7).
"(13) A reference in this section to the occurrence of an event includes
a reference to the coming into existence of a state of affairs.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 73
73. Section 16 of the Principal Act is amended by inserting after subsection
(5) the following subsection:
"(5A) Where the Commissioner gives a notice to trustees under subsection (5)
informing the trustees that a decision has been revoked or varied, the
Commissioner shall advise the Commissioner of Taxation of particulars of the
notice.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 74
74. In this Part, "Principal Act" means the Taxation Administration Act
1953.*3*
*3*No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and
52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75,
1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133,
1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123,
1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and
168, 1985; Nos. 41, 46, 48, 112, 144 and 154, 1986; No. 49, 1986 (as amended
by No. 141, 1987); Nos. 120 and 145, 1987; No. 62, 1987 (as amended by No.
108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as
amended by No. 11, 1988); and Nos. 95 and 97, 1988.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 75
75. Section 8W of the Principal Act is amended by omitting from subsection
(1A) "or 15C" and substituting ", 15C or 15D".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 76
76. In this Part, "Principal Act" means the Taxation Laws Amendment Act (No.
2) 1989.*4*
*4*No. 97, 1989.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 77
77. Section 12 of the Principal Act is amended:
(a) by inserting in subsection (1) the following definition:
"'amended Act' means the Principal Act as amended by this
Act;";
(b) by inserting after subsection (2) the following subsection:
"(2A) The amendments of Part IX of the amended Act made by
the Taxation Laws Amendment (Superannuation) Act 1989 apply to assessments in
respect of income of the 1 July 1988 year and of all subsequent years of
income.".
(c) by omitting from subsection (3) ", 110";
(d) by inserting in subsection (3) ", and the amendments of sections 160Y
and 160ZZJ of the Principal Act made by the Taxation Laws Amendment
(Superannuation) Act 1989," after "this Act";
(e) by inserting in subsection (3) "or a PST" after "a fund";
(f) by inserting in subsection (3) "or the PST" after "the fund".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 78
78. Section 14 of the Principal Act is amended:
(a) by adding at the end of the definition of "amended Act" in subsection
(1) "and the Taxation Laws Amendment (Superannuation) Act 1989";
(b) by inserting in subparagraph (2) (g) (i) "of the amended Act" after
"Part IX";
(c) by inserting after paragraph (2) (j) the following paragraph:
"(ja) notwithstanding the amendment of section 124ZA of the
Principal Act made by this Act, that section, insofar as it relates to section
23FC or 23FD of the Principal Act, continues to apply in relation to a fund to
which section 23FC or 23FD, in its application by virtue of this section,
applies in relation to the 1 July 1988 year, as if that amendment had not been
made;";
(d) by omitting paragraph (2) (m) and substituting the following paragraph:
"(m) a reference in section 121F of the amended Act to paragraph
23 (jaa) or section 23FC or 23FD of the Principal Act includes a reference to
that paragraph or that section, in its application, by virtue of this section,
in relation to the 1 July 1988 year;";
(e) by adding at the end of subsection (2) the following paragraph:
"(r) a reference in section 160K of the amended Act to paragraph
23 (jaa) or section 23FC or 23FD of the Principal Act includes a reference to
that paragraph or that section, in its application, by virtue of this section,
in relation to the 1 July 1988 year.";
(f) by adding at the end of the following subsections:
"(5) Where paragraph 23 (jaa), section 23FC or section 23FD of
the Principal Act applied to a fund in relation to the year of income in which
1 July 1987 occurred:
(a) for the purposes of ascertaining under Subdivision B of
Division 2 of Part III of the amended Act the value to be taken into account
in respect of trading stock of the fund on hand at the beginning of the 1 July
1988 year:
(i) the fund may, in accordance with subsection (6),
exercise any option, and give any notice, under section 31, paragraph 32 (5)
(c) or (d) or subsection 32 (6) of the amended Act in relation to the value of
the trading stock at the end of the year of income in which 1 July 1987
occurred; and
(ii) if the fund does not exercise an option under
subparagraph (i) in relation to particular trading stock, the value to be
taken into account in accordance with that subparagraph in relation to that
trading stock shall be the cost price; and
(b) if the fund adopts under Subdivision B of Division 2 of Part
III of the amended Act cost price as the basis of valuation in relation to any
trading stock on hand at the end of the 1 July 1988 year that was on hand at
the end of the preceding year of income, then, for the purposes of that
Subdivision, the cost price of that trading stock shall be taken to be equal
to the value at which the trading stock was taken into account in accordance
with subparagraph (a) (i).
"(6) The option or notice referred to in subparagraph (5) (a) (i):
(a) shall be exercised or given in writing to the Commissioner;
and
(b) shall be lodged with the Commissioner on or before the date
of lodgment of the fund's return of income of the 1 July 1988 year, or before
such later date as the Commissioner allows.
"(7) Where:
(a) a fund, being a complying superannuation fund or complying
ADF within the meaning of Part IX of the amended Act, first uses a particular
unit of property of the fund for the purpose of producing assessable income,
or first installs a particular unit of property of the fund ready for use for
that purpose and holds it in reserve, in a year of income, being the 1 July
1988 year or a later year of income; and
(b) apart from this section, section 57AH, or section 57AL, of
the amended Act (as that section continues to apply in spite of its repeal by
the Taxation Laws Amendment Act (No. 4) 1988) would apply in relation to the
unit of property of the fund in relation to that year of income;
then that section of the amended Act does not apply in relation to the unit of
property of the fund in relation to that year of income or any later year of
income.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 79
79. Section 18 of the Principal Act is repealed.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 80
80. Schedule 1 to the Principal Act is amended by omitting the amendment of
section 110 of the Income Tax Assessment Act 1936.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989
- SECT 81
81. Schedule 2 to the Principal Act is amended by omitting the amendments of
the Superannuation Act 1976.
The
comprises Act No. 105, 1989 amended as indicated in the Tables below.
For all relevant information pertaining to application, saving or transitional provisions
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
105, 1989 | 30 June 1989 | |||
56, 1994 | 7 Apr 1994 | S. 112: | S. 112(2) and (3) | |
75, 2010 | 28 June 2010 | Schedule 6 (item 105): 29 June 2010 | — |
(a) Subsection 2(10) of theTaxation Laws Amendment Act 1994 provides as follows:
(10) Section 112 is taken to have commenced immediately after the commencement of
section 17 of the
Taxation Laws Amendment (Superannuation) Act 1989 .Section 17 of the
Taxation Laws Amendment (Superannuation) Act 1989 commenced on 30 June 1989.
| |
Provision affected | How affected |
S. 17......................................... | am. No. 56, 1994 |
S. 66......................................... | rep. No. 75, 2010 |
(2) To remove any doubt, it is declared that, for all purposes (including the purposes of section 65 of the
Taxation Laws Amendment (Superannuation) Act 1989 ), the section that was inserted in theIncome Tax Assessment Act 1936 by section 17 of the Principal Act is taken to have been that section as amended by subsection (1) of this section.(3) This section does not affect the operation of paragraph 12(b) of the
Taxation Laws Amendment Act (No. 5) 1989 and, to remove any doubt, it is declared that the subsection 112(2) of theIncome Tax Assessment Act 1936
0
0
0