Taxation Laws Amendment (Superannuation) Act 1992 (Cth)
This compilation was prepared on 7 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 1 - PRELIMINARY
Section
Short title [
Commencement [
PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Deduction for contributions to eligible superannuation fund for
employees
Deductions for superannuation contributions by eligible persons
Application
Interpretation
Deductions for superannuation contributions by eligible persons
Repeal and substitution of new Subdivision:
Rebate for personal superannuation contributions
Interpretation
Operation of Part
Tax benefits
Cancellation of tax benefits etc.
Certain employees to be subject to provisional tax
Keeping of records
Interpretation
Application
Transitional - subsection 82AAT(2) regulations
Interpretation
Repeal of section 159SK
Accrual period for a superannuation pension
Entitlement to rebate - superannuation pension
Repeal of sections 159SN to 159SR (inclusive)
Entitlement to rebate - rebatable ETP annuity
Repeal of sections 159SV to 159SY (inclusive)
Application of pre-1 July 88 funding credits
Application
Interpretation
Application of pre-1 July 88 funding credits
Interpretation
Taxed and untaxed elements of post-June 83 component
Assessable income to include annuities and superannuation
pensions
Application
Interpretation
Interpretation
Interpretation
Application
Transitional
Interpretation
Components of an ETP
Insertion of new section:
ETP - retained amounts
Assessable income to include certain superannuation and kindred
payments
Assessable income to include 5% of certain amounts
Roll-over of ETPs
Application
Interpretation
Roll-over of ETPs
Application
Interpretation
Components of an ETP
ETP - retained amounts
Insertion of new section:
Exemption from tax - post-June 1994 invalidity component
and tax-free amount of bona fide redundancy payment or
approved early retirement scheme payment
Roll-over of ETPs
Approved early retirement scheme payments
Bona fide redundancy payments
Invalidity payments
Interpretation
Components of an ETP
Insertion of new Division:
Objects of Division
Simplified outline
Example of how to determine whether a benefit is in excess
of the recipient's RBLs
Interpretation
Payer deemed not to make an ETP to the extent to which ETP
is rolled-over
ETPs taken to be paid from superannuation fund
ETPs - retained amount
Excessive component of ETP to be ignored in working out
other components
Components of rolled-over ETP
When pension or annuity commences to be paid
When benefit previously received by recipient
Pension and annuity standards
Payers of benefits to give certain information to
Commissioner
Quotation of tax file numbers
Payer of benefit to provide copy of notice to recipient
Roll-overs to be notified to Commissioner
Determination of whether a benefit is in excess of
recipient's RBLs
Revision of final determination
Interim determinations
Interim determination may be made on certain assumptions
Commissioner may determine standard indexation rate
Notification of determinations
Amendment of determinations
Objections
Person may request copy of previous determination
When benefits exceed recipient's RBLs
Discretion to treat benefits as within recipient's RBLs
Benefits which are counted towards a person's RBLs
Lump sum RBLs and pension RBLs
Transitional lump sum RBLs and transitional pension RBLs
Assessment of benefits against lump sum RBL
Qualifying portion of benefits
RBL amount - ETP paid by superannuation funds or ADFs
RBL amount - ETP paid by life assurance company or
registered organisation
RBL amount - ETP paid by employer
RBL amount - superannuation pension (other than disability
superannuation pension)
RBL amount - disability superannuation pension
RBL amount - annuity
Reduction of ETP taken into account in working out RBL
amount of annuity - roll-overs
Capital value of superannuation pension
Reduction of capital value of superannuation pension –
roll-overs
pension or rebatable ETP annuity
Rebatable proportion of rebatable superannuation pension
or rebatable ETP annuity
Application
PART 3 - AMENDMENT OF THE OCCUPATIONAL SUPERANNUATION STANDARDS ACT
1987
Principal Act
Interpretation
Repeal of Part IIIA
Review of certain decisions
Statements to accompany notification of decisions
Regulations
Application
Interpretation
Application
Interpretation
Application
Interpretation
Operating standards for superannuation funds
Transitional
PART 4 - AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION)
ACT 1992
Principal Act
Interpretation: notional earnings base where employer contributing
to superannuation fund for benefit of employee immediately before
21 August 1991
Interpretation: notional earnings base where employer not
contributing to superannuation fund for benefit of employee
immediately before 21 August 1991
Reduction of charge percentage where contribution made to fund
other than defined benefit superannuation scheme
Insertion of new section:
Certain contributions taken to be in accordance with
industrial award that specifies notional earnings base
Application of amendments relating to notional earnings base
Interpretation: maximum contribution base
Individual superannuation guarantee shortfall for 1992-93
Individual superannuation guarantee shortfall for 1993-94 and
subsequent years
Reduction of charge percentage where contribution made to defined
benefit superannuation scheme
Certain benefit certificates presumed to be certificates in
relation to complying superannuation scheme
Salary or wages: general exclusions
Application of amendments relating to excluded salary or wages
PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953
Principal Act
Interpretation
Penalty taxes to be alternative to prosecution for certain
offences
General interpretative provisions
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992 - LONG
TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment (Superannuation) Act
1992.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 2
Commencement [
2.(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) The following provisions commence on 1 July 1994:
(a) Divisions 2, 4, 5, 6, 9, 10 and 11 of Part 2;
(b) Divisions 2 and 3 of Part 3.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- 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);
Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,
73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,
1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; Nos. 4, 5, 6,
48, 55, 100, 203, 208 and 216, 1991; and Nos. 3, 35, 70, 80, 81, 92, 98 and
101, 1992.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 4
Deduction for contributions to eligible superannuation fund
for employees
4. Section 82AAC of the Principal Act is amended by omitting subsections (2)
and (2A) and substituting the following subsections:
"(2) Subject to subsection (2D) (which deals with elective deduction
limits), the total of the deductions allowable under subsection (1) for
contributions made by a taxpayer, or by a taxpayer and one or more associates
of the taxpayer, in a year of income in respect of a particular employee must
not exceed the employee's deduction limit for the year of income (worked out
under subsection (2A)).
"(2A) An employee's deduction limit for a year of income is worked out:
(a) by identifying the day in the year of income, or the last day in the
year of income, on which the taxpayer, or any of the associates of the
taxpayer, made a contribution in respect of the employee, where a deduction
would have been allowable to the taxpayer, or to the associate, under
subsection (1) for that contribution (assuming subsection (2) had not been
enacted); and
(b) by working out the age reached by the employee as at the end of that
day; and
(c) if the year of income is the 1994-95 year of income-by applying the
following table:
Deduction limit
$ 9,000
$25,000
$62,000; and
(d) if the year of income is a later year of income-by applying that table
subject to the indexation arrangements set out in subsection (2B).
"(2B) The table in subsection (2A) applies for the 1995-96 year of income or
a later year of income as if each indexable amount were replaced by the amount
worked out using the formula:
x Previous indexable amount
where:
'Indexation factor' means the indexation factor for the year of income
worked out under section 159SG;
'Previous indexable amount' means the indexable amount concerned for the
previous year of income.
"(2C) In subsection (2B):
'indexable amount' means:
(a) an amount of $9,000, $25,000 or $62,000 specified in the table in
subsection (2A); or
(b) if any such amount has previously been altered under subsection (2B)-the
altered amount.
"(2D) If:
(a) at all times during so much of a year of income as occurred when a
taxpayer was an employer, 10 or more employee positions under the taxpayer are
filled by employees of the taxpayer; and
(b) apart from subsection (2) and this subsection, deductions are allowable
to the taxpayer, or to one or more associates of the taxpayer, under
subsection (1) for contributions made in the year of income in respect of at
least 10 of those positions; and
(c) the taxpayer elects that this subsection is to apply to the taxpayer for
the year of income;
then, in spite of subsection (2), the total of the deductions allowable under
subsection (1) in respect of contributions made by the taxpayer, or by the
taxpayer and one or more of the associates of the taxpayer, in the year of
income in respect of all of the employees of the taxpayer must not exceed:
(d) if the year of income is the 1994-95 year of income-the amount
calculated using the formula:
x $25,000
positions
where:
'Full-year employee positions' means the number of employee positions under
the employer which satisfy the following conditions:
(i) the employee positions were filled by employees of the
taxpayer at all times during so much of the year of income as occurred when
the taxpayer was an employer;
(ii) apart from subsection (2) and this subsection, deductions are
allowable to the taxpayer, or to one or more associates of the taxpayer, under
subsection (1) for contributions made in the year of income in respect of the
employees who filled those positions; or
(e) if the year of income is a later year of income-the amount calculated
using that formula subject to the indexation arrangements set out in
subsection (2E).
"(2E) The formula in subsection (2D) applies for the 1995-96 year of income
or a later year of income as if the indexable amount were replaced by the
amount worked out using the formula:
x Previous indexable amount
where:
'Indexation factor' means the indexation factor for the year of income
worked out under section 159SG;
'Previous indexable amount' means the indexable amount for the previous year
of income.
"(2F) In subsection (2E):
'indexable amount' means:
(a) an amount of $25,000 specified in the formula in subsection (2D); or
(b) if that amount has previously been altered under subsection (2E)-the
altered amount.
"(2G) An election by a taxpayer under subsection (2D) must be made before:
(a) the date of lodgment of the taxpayer's return of income for the year of
income to which the election relates; or
(b) such later date as the Commissioner allows.
"(2H) For the purposes of subsection (2D), if:
(a) at a particular time ('cessation time'), an employee of an employer
ceases to fill an employee position under the employer; and
(b) at a later time, the employee position is filled by another employee of
the employer; and
(c) the period:
(i) beginning at the cessation time; and
(ii) ending at that later time;
does not exceed 3 months;
the employee position is taken to have been filled by an employee of the
employer at all times during that period.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 5
Deductions for superannuation contributions by eligible persons
5. Section 82AAT of the Principal Act is amended by omitting subsection (2)
and substituting the following subsections:
"(2) The total of the deductions allowable to a taxpayer under this section
for a year of income must not exceed the lesser of the following:
(a) the sum of:
(i) $3,000; and
(ii) 75% of the amount (if any) by which the total amount of the
contributions exceeds $3,000;
(b) the taxpayer's deduction limit for the year of income (worked out under
subsection (2A)).
"(2A) A taxpayer's deduction limit for a year of income is worked out:
(a) by identifying the day in the year of income, or the last day in the
year of income, on which the taxpayer made a contribution to a fund, where a
deduction would have been allowable to the taxpayer under this section in
respect of the contribution (assuming that subsections (1A) and (2) had not
been enacted); and
(b) by working out the age reached by the taxpayer as at the end of that
day; and
(c) if the year of income is the 1994-95 year of income-by applying the
following table:
Deduction limit
$ 9,000
$25,000
$62,000; and
(d) if the year of income is a later year of income-by applying the table
subject to the indexation arrangements set out in subsection (2B).
"(2B) The table in subsection (2A) applies for the 1995-96 year of income as
if each indexable amount were replaced by the amount worked out using the
formula:
x Previous indexable amount
where:
'Indexation factor' means the indexation factor for the year of income
worked out under section 159SG;
'Previous indexable amount' means the indexable amount concerned for the
previous year of income.
"(2C) In subsection (2B):
'indexable amount' means:
(a) an amount of $9,000, $25,000 or $62,000 specified in the table in
subsection (2A); or
(b) if any such amount has previously been altered under subsection (2B)-the
altered amount.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 6
Application
6. The amendments made by this Division apply to assessments in respect of
income of the 1994-95 year of income and of all later years of income.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 7
Interpretation
7.(1) Section 82AAS of the Principal Act is amended:
(a) by omitting from subsection (1) the definitions of "Commission's
superannuation principles", "industrial tribunal", "superannuation agreement",
"superannuation agreement contributions", "superannuation contributions" and
"unsupported eligible person";
(b) by inserting in subsection (1) the following definition:
"'eligible employment', in relation to a person, means:
(a) the holding of any office or appointment; or
(b) the performance of any functions or duties; or
(c) the engaging in of any work; or
(d) the doing of any acts or things;
that results in the person being treated as an employee for the purposes of
the Superannuation Guarantee (Administration) Act 1992 (assuming that
subsection 12(11) of that Act had not been enacted);";
(c) by omitting subsection (2A) and substituting the following subsection:
"(3) If:
(a) during a period, or a combination of periods, in a year of income, a
person was engaged in particular eligible employment; and
(b) either:
(i) both:
(A) the person's assessable income, or the person's exempt
income, of the year of income includes one or more amounts that were derived
from that eligible employment; and
(B) the total of the amounts mentioned in sub-subparagraph (A)
is less than 10% of the person's assessable income of the year of income; or
(ii) the person's assessable income, or the person's exempt
income, of the year of income does not include any amount that was derived
from that eligible employment;
a reference in subsection (2) to superannuation benefits does not include a
reference to superannuation benefits to the extent to which:
(c) they would be attributable to, or paid out of money representing:
(i) contributions made in relation to the person in connection
with that eligible employment; or
(ii) income or accretions arising from such contributions; or
(d) they would otherwise be attributable to that eligible employment.".
(2) Section 82AAS of the Principal Act is amended:
(a) by omitting from paragraph (2)(a) "upon retirement" and substituting "in
the event of the retirement of the relevant person";
(b) by adding at the end of sub-subparagraph (2)(b)(ii)(A) "or";
(c) by adding at the end of subparagraph (2)(b)(ii) the following word and
sub-subparagraph:
"; or (D) income or accretions arising from contributions made to a
superannuation fund in relation to the relevant person by a person other than
the relevant person during an earlier year of income, where there is no
reasonable likelihood that any such contributions will be made at any time
after the beginning of the first-mentioned year of income.";
(d) by adding at the end the following subsections:
"(4) For the purposes of subsection (2), if:
(a) a payment of superannuation guarantee charge is made for a financial
year; and
(b) there is a shortfall component of the payment in relation to a
particular employee; and
(c) that component is paid to a fund in accordance with section 65 of the
Superannuation Guarantee (Administration) Act 1992;
then:
(d) that component is taken to have been so paid to the fund before the end
of that financial year; and
(e) a benefit attributable to that component is taken to have been
attributable to a contribution made to the fund in relation to the employee by
the employer of the employee; and
(f) the circumstances which led to the making of that contribution are taken
to have existed during that financial year.
"(5) For the purposes of subsection (2), if:
(a) a payment of superannuation guarantee charge is made for a financial
year; and
(b) there is a shortfall component of the payment in relation to a
particular employee; and
(c) that component is paid to the employee in accordance with section 66 of
the Superannuation Guarantee (Administration) Act 1992;
then:
(d) that component is taken to have been so paid to the employee before the
end of that financial year; and
(e) that component is taken to have been attributable to a contribution made
to a superannuation fund in relation to the employee by the employer of the
employee; and
(f) the circumstances which led to the payment of that component are taken
to have existed during that financial year.
"(6) For the purposes of subsection (2), if:
(a) a payment of superannuation guarantee charge is made for a financial
year; and
(b) there is a shortfall component of the payment in relation to a
particular employee; and
(c) that component is paid to the legal personal representative of the
employee in accordance with section 67 of the Superannuation Guarantee
(Administration) Act 1992;
then:
(d) that component is taken to have been paid to the employee before the end
of that financial year because of the retirement of the employee; and
(e) that component is taken to have been attributable to a contribution made
to a superannuation fund in relation to the employee by the employer of the
employee; and
(f) the circumstances which led to the payment of that component are taken
to have existed during that financial year.
"(7) An expression used in subsection (4), (5) or (6) and in the
Superannuation Guarantee (Administration) Act 1992 has the same meaning in
that subsection as it has in that Act.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 8
Deductions for superannuation contributions by eligible persons
8. Section 82AAT of the Principal Act is amended by omitting subsection (2)
and substituting the following subsection:
"(2) The total of the deductions allowable to a taxpayer under this section
for a year of income must not exceed the lesser of the following:
(a) the sum of:
(i) $3,000; and
(ii) 75% of the amount (if any) by which the total amount of the
contributions exceeds $3,000;
(b) the amount ascertained in accordance with the regulations as the
taxpayer's maximum deductible contributions for the year of income.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 9
9. Subdivision AAC of Division 17 of Part III of the Principal Act is
repealed and the following Subdivision is substituted:
"Subdivision AAC-Rebate for personal superannuation contributions
Rebate for personal superannuation contributions
"159SZ.(1) If the following conditions are satisfied in relation to a
taxpayer and in relation to a year of income of the taxpayer (the 'taxpayer's
year of income'):
(a) the taxpayer is not an eligible person (within the meaning of section
82AAS) in relation to the taxpayer's year of income;
(b) during the taxpayer's year of income, the taxpayer makes one or more
eligible personal superannuation contributions;
(c) the taxpayer's assessable income of the taxpayer's year of income is
less than $31,000;
the taxpayer is entitled to a rebate of tax in the taxpayer's assessment for
the taxpayer's year of income equal to 10% of the lesser of the following:
(d) $1,000 reduced by 25 cents for each $1 of the amount (if any) by which
the taxpayer's assessable income of the taxpayer's year of income exceeds
$27,000;
(e) the total amount of the eligible personal superannuation contributions
made by the taxpayer in the taxpayer's year of income.
"(2) In subsection (1):
'complying superannuation fund' has the same meaning as in Part IX;
'dependant' has the same meaning as in the Occupational Superannuation
Standards Act 1987;
'eligible personal superannuation contributions', in relation to a taxpayer,
means contributions made by the taxpayer to a fund where:
(a) the fund is a complying superannuation fund in relation to the year of
income of the fund in which the contributions are made; and
(b) the contributions are made to obtain superannuation benefits for the
taxpayer or, in the event of the death of the taxpayer, for dependants of the
taxpayer.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 10
Interpretation
10. Section 177A of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of "section 159TL
rebate";
(b) by omitting subsection (6).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 11
Operation of Part
11. Section 177B of the Principal Act is amended by omitting subsections (5)
and (6).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 12
Tax benefits
12. Section 177C of the Principal Act is amended:
(a) by omitting "or" from the end of paragraph (1)(b);
(b) by omitting paragraph (1)(ba);
(c) by omitting "paragraph; and" from the end of paragraph (1)(d) and
substituting "paragraph.";
(d) by omitting paragraph (1)(e);
(e) by omitting "be; or" from the end of paragraph (2)(b) and substituting
"be.";
(f) by omitting paragraph (2)(c);
(g) by omitting from subsection (3) ", (b)(i) or (c)(i)" and substituting
"or (b)(i)";
(h) by omitting from subsection (3) "or a section 159TL rebate";
(i) by omitting from subsection (3) "or the section 159TL rebate".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 13
Cancellation of tax benefits etc.
13. Section 177F of the Principal Act is amended:
(a) by omitting "or" from the end of paragraph (1)(b);
(b) by omitting paragraph (1)(c);
(c) by omitting "or" from the end of paragraph (3)(b);
(d) by omitting paragraph (3)(c).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 14
Certain employees to be subject to provisional tax
14. Section 221YAB of the Principal Act is amended by omitting "159TL" from
the definition of "Qualifying rebates" in paragraph (b) and substituting
"159SZ".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 15
Keeping of records
15. Section 262A of the Principal Act is amended by inserting in subsection
(4A) "as in force immediately before the day on which the Taxation Laws
Amendment Act (No. 6) 1992 received the Royal Assent" after "Part III".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 16
Interpretation
16. Section 267 of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of
"superannuation agreement contribution" and substituting the
following definition:
"'superannuation agreement contribution', in relation to a person (the
'eligible person'), means an eligible superannuation contribution made in
relation to the eligible person under:
(a) a superannuation agreement that has been made or ratified by an
industrial tribunal in accordance with the Commission's superannuation
principles; or
(b) an agreement that:
(i) is a superannuation agreement that has not been ratified by an
industrial tribunal; and
(ii) was entered into in connection with and, in the opinion of
the Commissioner, is identical or nearly identical to, another superannuation
agreement that:
(A) has been made or ratified by an industrial tribunal in
accordance with the Commission's superannuation principles; and
(B) relates to persons engaged in the same industry as the
industry in which the eligible person is engaged;";
(b) by inserting in subsection (1) the following definitions:
"'Commission's superannuation principles' means:
(a) the principles relating to the making or ratification of superannuation
agreements set out in a decision given on 26 June 1986 by the Australian
Conciliation and Arbitration Commission in a National Wage Case; or
(b) if those principles are varied by:
(i) the Australian Conciliation and Arbitration Commission; or
(ii) the Australian Industrial Relations Commission;
in a subsequent National Wage Case-those principles as so varied;
'eligible superannuation contributions', in relation to a person, means
contributions made (otherwise than by the person) to a complying
superannuation fund or funds to obtain superannuation benefits for the person
or, in the event of the death of the person, for the dependants of the
person;
'industrial tribunal' means an industrial tribunal constituted under a law
of the Commonwealth or of a State or Territory;
'superannuation agreement' means an agreement, award, determination or order
that requires the making of eligible superannuation contributions in relation
to persons engaged in a particular industry;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 17
Application
17.(1) The amendments made by this Division (other than the amendments of
sections 221YAB and 262A of the Principal Act) apply to assessments in respect
of income of the 1992-93 year of income and of all later years of income.
(2) The amendment of section 221YAB of the Principal Act made by this
Division applies in relation to provisional tax (including instalments) for
the 1993-94 year of income and for later years of income.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 18
Transitional-subsection 82AAT(2) regulations
18. Regulations in force for the purposes of subsection 82AAT(2) of the
Principal Act immediately before the commencement of this section have effect,
after that commencement, as if they had been made for the purposes of
subsection 82AAT(2) of the Principal Act as amended by this Act.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 19
Interpretation
19. Section 159SJ of the Principal Act is amended:
(a) by omitting from subsection (1) all the definitions other than the
definitions of "applicable fund", "complying superannuation fund", "CS
policy", "ETP", "ETP Subdivision", "exempt policy", "first payment date",
"rolled-over amount", "superannuation pension" and "taxed superannuation
fund";
(b) by omitting from paragraph (a) of the definition of "first payment date"
in subsection (1) "date on which the pension or annuity first commenced to be
payable" and substituting "first day of the period to which the first payment
of the pension or annuity relates";
(c) by inserting in subsection (1) the following definitions:
"'death or disability benefit', in relation to a person, means:
(a) a benefit provided to the person in the event of the death of another
person; or
(b) a benefit provided to the person in the event of the disability of the
person, where 2 legally qualified medical practitioners have certified that
the disability is likely to result in the person being unable ever to be
employed in a capacity for which the person is reasonably qualified because of
education, training or experience;
'rebatable ETP annuity' means a qualifying annuity (within the meaning of
the ETP Subdivision) where:
(a) the purchase price of the annuity consists wholly of a rolled-over
amount or rolled-over amounts; and
(b) the annuity is not a superannuation pension;
'rebatable proportion', in relation to a rebatable ETP annuity or a
rebatable superannuation pension, has the same meaning as in Division 14;
'rebatable superannuation pension' means a superannuation pension where:
(a) the applicable fund is or has been:
(i) a complying superannuation fund; or
(ii) a fund to which paragraph 23(jaa) or section 23FC, as in
force at any time before 30 June 1989, has applied; or
(iii) a fund to which paragraph 23(ja) or section 23F or 23FB, as
in force at any time before18 December 1987, has applied; or
(iv) a fund to which section 79, as in force at any time before 25
June 1984, has applied;
in relation to the year of income in which the first payment date occurs or
any earlier year of income; and
(b) the person to whom the pension first became payable is not the trustee
of the applicable fund;
'rebatable 27H amount', in relation to a rebatable ETP annuity or a
rebatable superannuation pension and in relation to a year of income, means:
(a) if:
(i) the 55th birthday of the recipient of the annuity or pension
occurred before the year of income; or
(ii) the annuity or pension is a death or disability benefit for
the recipient;
an amount included in assessable income under section 27H in respect of the
annuity or pension; or
(b) in any other case-so much (if any) of an amount included in assessable
income under section 27H in respect of the annuity or pension as is
attributable to a payment of the annuity or pension made on or after the
recipient's 55th birthday;
'recipient', in relation to an annuity or pension, means the person who
derives the annuity or pension;";
(c) by omitting subsection (2).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 20
Repeal of section 159SK
20. Section 159SK of the Principal Act is repealed.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 21
Accrual period for a superannuation pension
21. Section 159SL of the Principal Act is amended:
(a) by re-locating and re-numbering the section so that:
(i) it becomes section 275C; and
(ii) it is located after section 275B;
(b) by omitting from subsection (2) "The accrual period" and substituting
"For the purposes of section 275B, the accrual period";
(c) by omitting from subsection (1) "The accrual period" and substituting "
For the purposes of this section, the accrual period";
(d) by re-ordering and re-numbering subsections (1) and (2) so that:
(i) subsection (1) becomes subsection (2); and
(ii) subsection (2) becomes subsection (1);
(e) by adding at the end the following subsections:
"(5) For the purposes of this section, the notional purchase price of a
superannuation pension is attributable to an ETP to the extent to which that
notional purchase price may reasonably be regarded as consisting of any part
of the ETP that has been rolled-over within the meaning of Subdivision AA of
Division 2 of Part III.
"(6) In this section:
'eligible service period' has the same meaning as in Subdivision AA of
Division 2 of Part III;
'first payment date' has the same meaning as in section 275B;
'notional purchase price' has the same meaning as in section 275B;
'section 27A ETP definition' means the definition of 'eligible termination
payment' in section 27A.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 22
Entitlement to rebate-superannuation pension
22. Section 159SM of the Principal Act is amended by omitting subsection (1)
and substituting the following subsection:
"(1) Subject to subsection (2), for each rebatable 27H amount included in a
taxpayer's assessable income of a year of income in respect of a rebatable
superannuation pension, the taxpayer is entitled to a rebate of tax in the
taxpayer's assessment for the year of income of an amount worked out using the
formula:
x Rebatable proportion x 15%
of pension
where:
'Reduced 27H amount' is the rebatable 27H amount, reduced by the total of
the amounts specified in notices under section 159SS given in relation to
payments of the pension during the year of income (other than payments made
before the taxpayer's 55th birthday).".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 23
Repeal of sections 159SN to 159SR (inclusive)
23. Sections 159SN to 159SR (inclusive) of the Principal Act are repealed.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 24
Entitlement to rebate-rebatable ETP annuity
24. Section 159SU of the Principal Act is amended by omitting all the words
after "of an amount" and substituting "worked out using the formula:
x Rebatable proportion x 15%
of annuity
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 25
Repeal of sections 159SV to 159SY (inclusive)
25. Sections 159SV to 159SY (inclusive) of the Principal Act are repealed.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 26
Application of pre-1 July 88 funding credits
26. Section 275B of the Principal Act is amended:
(a) by omitting from subsection (3) the definition of the component
"Notional purchase price" and substituting the following definition:
"Notional purchase price is the notional purchase price of the pension;";
(b) by omitting from subsection (7) the definitions of "accrual period" and
"first payment date" and substituting the following definitions:
"'accrual period' has the meaning given by section 275C;
'first payment date', in relation to a pension, means the first day of the
period to which the first payment of the pension relates;
'notional purchase price', in relation to a pension, means the net present
value of the pension on the date on which the pension first commenced to be
payable;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 27
Application
27. The amendments made by this Division apply to payments of annuities or
pensions on or after 1 July 1994.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 28
Interpretation
28. Section 27A of the Principal Act is amended by omitting from subsection
(1) the definition of "undeducted purchase price" and substituting the
following definition:
"'undeducted purchase price', in relation to an annuity or superannuation
pension, means:
(a) if:
(i) the first day of the period to which the first payment of the
annuity or pension relates is before 1 July 1994; or
(ii) the first day of the period to which the first payment of the
annuity or pension relates is on or after 1 July 1994 and either:
(A) the annuity or pension is not a rebatable ETP annuity, or a
rebatable superannuation pension, within the meaning of section 159SJ; or
(B) in the case of a pension-a notice under section 159SS was
given in relation to any payment of the pension during any year of income;
the sum of:
(iii) so much of the purchase price of the annuity or pension as
was paid before 1 July 1983 and:
(A) has not been, and will not be, an allowable deduction; and
(B) has not been, and is not to be, treated as a rebatable
amount for the purposes of section 159N as in force at any time before the
commencement of the Taxation Laws Amendment Act (No. 2) 1985; and
(C) is not an amount in respect of which a rebate of income tax
has been allowed, or is allowable, in assessments for income tax under this
Act or any previous law of the Commonwealth; and
(iv) so much of the purchase price of the annuity or pension as
was paid on or after 1 July 1983 and has not been, and will not be, an
allowable deduction, reduced by so much of the purchase price of the annuity
or pension as is taken, because of section 27D, to consist of an amount to
which sub-subparagraph 27D(1)(b)(iii)(A) or (B) applies; or
(b) in any other case-so much of the purchase price of the annuity or
pension as was paid on or after 1 July 1983 and has not been, and will not be,
an allowable deduction, reduced by so much of the purchase price of the
annuity or pension as is taken, because of section 27D, to consist of an
amount to which sub-subparagraph 27D(1)(b)(iii)(A), (B), (BA), (D) or (E)
applies;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 29
Application of pre-1 July 88 funding credits
29. Section 275B of the Principal Act is amended by inserting "subparagraph
(a)(iv) or" before "paragraph (b)" in the definition of "UPP" in subsection
(3).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 30
Interpretation
30. Section 27A of the Principal Act is amended:
(a) by omitting from paragraph (d) of the definition of "eligible
termination payment" in subsection (1) ", reduced (except in the case of an
ISC-directed commutation payment) by the unused undeducted purchase price in
relation to the superannuation pension";
(b) by omitting from paragraph (da) of that definition all the words after
"being made to the trustee;";
(c) by omitting from paragraph (db) of that definition all the words after
"being made to the taxpayer;";
(d) by omitting from paragraph (e) of that definition ", reduced by the
unused undeducted purchase price in relation to the superannuation pension";
(e) by omitting from subparagraph (f)(ii) of that definition "payable," and
substituting "payable;";
(f) by omitting from paragraph (f) of that definition "reduced by the unused
undeducted purchase price in relation to the pension;";
(g) by omitting from paragraph (g) of that definition ", reduced (except in
the case of an ISC-directed commutation payment) by the unused undeducted
purchase price in relation to the annuity";
(h) by omitting from paragraph (ga) of that definition all the words after
"being made to the trustee";
(i) by omitting from paragraph (gb) of that definition all the words after
"being made to the taxpayer";
(j) by omitting from paragraph (h) of that definition ", reduced by the
unused undeducted purchase price in relation to the qualifying annuity";
(k) by omitting from subparagraph (j)(ii) of that definition "payable," and
substituting "payable;";
(l) by omitting from paragraph (j) of that definition "reduced by the unused
undeducted purchase price in relation to the annuity,";
(m) by omitting from subsection (1) the definition of "undeducted
contributions" and substituting the following definition:
"'undeducted contributions', in relation to an ETP made in relation to a
taxpayer, means:
(a) if the ETP is covered by paragraph (d), (e) or (f) of the definition of
'eligible termination payment'-the unused undeducted purchase price in
relation to the superannuation pension concerned; or
(b) if the ETP is covered by paragraph (da) or (db) of the definition of
'eligible termination payment'-the amount that would have been the unused
undeducted purchase price in relation to the superannuation pension concerned;
or
(c) if the ETP is covered by paragraph (g), (h) or (j) of the definition of
'eligible termination payment'-the unused undeducted purchase price in
relation to the annuity concerned; or
(d) if the ETP is covered by paragraph (ga) or (gb) of the definition of
'eligible termination payment'-the amount that would have been the unused
undeducted purchase price in relation to the annuity concerned (having regard
only to contributions made to the fund concerned); or
(e) if:
(i) the ETP is covered by any other paragraph of the definition of
'eligible termination payment'; or
(ii) paragraph (a), (b), (c) or (d) of this definition applies,
but the amount worked out under that paragraph is nil;
so much of the ETP as is attributable to contributions made by the taxpayer,
or by another person, after 30 June 1983 to a superannuation fund, where:
(iii) the contributions were made in order to obtain
superannuation benefits; and
(iv) no deductions are allowable or have been allowed to the
taxpayer or to the other person in respect of the contributions;";
(n) by inserting in subsection (7) "paragraph (e) of " after "the purposes
of ".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 31
Taxed and untaxed elements of post-June 83 component
31. Section 27AB of the Principal Act is amended by omitting paragraph
(3)(b) and substituting the following paragraph:
"(b) if paragraph (a) does not apply-the amount that would have been the
amount of the post-June 83 component if the ETP had been equal to the amount
worked out using the formula:
x Days in eligible service period
Days in total service period
where:
'ETP' is the amount of the ETP reduced by the amount of the excessive
component (if any);
'Days in eligible service period' means the number of whole days in the
eligible service period in relation to the ETP;
'Days in total service period' means the sum of:
(i) the number of whole days in the eligible service period in
relation to the ETP; and
(ii) 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.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 32
Assessable income to include annuities and superannuation pensions
32. Section 27H of the Principal Act is amended:
(a) by omitting paragraph (3A)(a) and substituting the following paragraph:
"(a) the extent to which the payment made in relation to the commutation
consisted of undeducted contributions;";
(b) by omitting from paragraph (3A)(b) "components other than the post-June
83 component" and substituting "undeducted contributions".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 33
Application
33.(1) The amendments made by this Division (other than section 32) apply in
relation to ETPs made on or after 1 July 1994 (other than ISC-directed
commutation payments).
(2) The amendments made by section 32 apply in relation to annuities where
the first day of the period to which the first payment of the annuity relates
is on or after 1 July 1994.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 34
Interpretation
34. Section 27A of the Principal Act is amended:
(a) by inserting in subsection (1) the following definitions:
"'annuity' has the same meaning as in section 3 of the Occupational
Superannuation Standards Act 1987;
'pension' has the same meaning as in section 3 of the Occupational
Superannuation Standards Act 1987;";
(b) by adding at the end of paragraph (b) of the definition of "eligible
annuity" in subsection (1) the following subparagraph:
"(vii) if the annuity is of a kind specified in the regulations-the annuity
is taken, under the regulations, to meet the annuity standards;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 36
Interpretation
36. Section 221A of the Principal Act is amended by inserting the following
definitions in subsection (1):
"'annuity' has the same meaning as in section 3 of the Occupational
Superannuation Standards Act 1987;
'pension' has the same meaning as in section 3 of the Occupational
Superannuation Standards Act 1987;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 37
Interpretation
37. Section 267 of the Principal Act is amended by inserting the following
definitions in subsection (1):
"'annuity' has the same meaning as in section 3 of the Occupational
Superannuation Standards Act 1987;
'pension' has the same meaning as in section 3 of the Occupational
Superannuation Standards Act 1987;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 38
Application
38. The amendments made by this Division (other than section 36) apply as
follows:
(a) to the extent that the amendments relate to annuities-to annuities
purchased after the commencement of this section;
(b) to the extent that the amendments relate to pensions-to payments of
pensions made after the commencement of this section.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 39
Transitional
39. The first regulations made for the purposes of subparagraph (b)(vii) of
the definition of "eligible annuity" in subsection 27A(1) of the Principal Act
as amended by this Act may be expressed to apply in relation to annuities
purchased during any period after the commencement of this section.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 40
Interpretation
40. Section 27A of the Principal Act is amended by omitting subsection (10).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 41
Components of an ETP
41. Section 27AA of the Principal Act is amended by omitting subsection (2).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 42
42. After section 27AB of the Principal Act the following section is
inserted:
ETP-retained amounts
(Section applies if ETP made)
"27AC.(1) This section applies if an ETP is made in relation to a taxpayer.
(Retained amounts)
"(2) For the purposes of this Subdivision:
(a) the retained amount of the ETP is so much of the ETP as was not
rolled-over; and
(b) the retained amount of a concessional component of the ETP is so much of
the concessional component as was not rolled-over; and
(c) the retained amount of the undeducted contributions in relation to the
ETP is so much of the undeducted contributions as was not rolled-over; and
(d) the retained amount of the pre-July 83 component of the ETP is whichever
is the lesser of the following amounts:
(i) the amount worked out using the formula:
Retained Non-qualifying
- amount of - component - Excessive x Pre-July 83
concessional of ETP component Total period
of ETP
ETP
where:
'Pre-July 83' is the number of whole days (if any) in the eligible service
period that occurred before 1 July 1983;
'Total period' is the number of whole days in the eligible service period;
(ii) the amount represented by the following component in
subparagraph (i), reduced by the retained amount of the undeducted
contributions:
Retained Non-
- amount of - qualifying - Excessive x; and
concessional component component
of ETP of ETP
ETP
(e) the retained amount of the post-June 83 component is the retained amount
of the ETP, reduced by:
(i) the retained amount of the concessional component of the ETP;
and
(ii) the retained amount of the undeducted contributions in
relation to the ETP; and
(iii) the non-qualifying component of the ETP; and
(iv) the excessive component of the ETP; and
(v) the retained amount of the pre-July 83 component of the ETP.
(Commissioner may increase subparagraph (2)(d)(i) amount)
"(3) The Commissioner may increase the amount calculated under subparagraph
(2)(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 Commissioner's opinion,
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 Commissioner's
opinion, 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 been terminated on that date;
(c) any previous application in relation to the taxpayer of:
(i) this subsection; or
(ii) subsection 27AA(2) as in force at any time before the
commencement of section 1 of the Taxation Laws Amendment Act (No. 6) 1992; or
(iii) 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 element of retained amount of post-June 83 component)
"(4) For the purposes of this Subdivision, the taxed element of the retained
amount of the post-June 83 component of the ETP is the retained amount of the
post-June 83 component, reduced by the untaxed element of the retained amount
of the post-June 83 component.
(Untaxed element of retained amount of post-June 83 component)
"(5) For the purposes of this Subdivision, the untaxed element of the
retained amount of the post-June 83 component is the untaxed element of the
post-June 83 component, reduced by so much of that element as has been
rolled-over.
(Increased subparagraph (2)(d)(i) amount-further reduction of subsection (5)
amount)
"(6) If, under subsection (3), the Commissioner increases the amount
calculated under subparagraph (2)(d)(i) in relation to an ETP, the amount
calculated under subsection (5) is to be further reduced:
(a) if the amount of the increase does not exceed the amount calculated
under subsection (5)-by the amount of the increase; or
(b) if the amount of the increase exceeds the amount calculated under
subsection (5)-to 0.
(Retained amounts where subsection 27AA(3) applies)
"(7) If subsection 27AA(3) applies in relation to an ETP, subsection (2) of
this section has effect as if the amounts calculated in relation to the ETP
under paragraphs (2)(d) and (e) were both 0.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 43
Assessable income to include certain superannuation and kindred
payments
43. Section 27B of the Principal Act is amended by omitting subsection (1)
and substituting the following subsection:
"(1) If an ETP is made in relation to a taxpayer in a year of income, the
taxpayer's assessable income of the year of income includes:
(a) the taxed element of the retained amount of the post-June 83 component;
and
(b) the untaxed element of the retained amount of the post-June 83
component.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 44
Assessable income to include 5% of certain amounts
44. Section 27C of the Principal Act is amended:
(a) by omitting subsection (1) and substituting the following subsection:
"(1) Subject to subsection (1A), if an ETP is made in relation to a taxpayer
in a year of income, the taxpayer's assessable income of the year of income
includes 5% of the retained amount of the pre-July 83 component.";
(b) by omitting subsection (2) and substituting the following subsection:
"(2) If an ETP is made in relation to a taxpayer in a year of income, the
taxpayer's assessable income of the year of income includes 5% of the retained
amount of the concessional component.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 45
Roll-over of ETPs
45. Section 27D of the Principal Act is amended:
(a) by omitting from subparagraphs (1)(b)(i) and (ii) "this paragraph" and
substituting "this section";
(b) by omitting from subparagraph (1)(b)(iii) "this subparagraph" and
substituting "this section";
(c) by adding at the end the following subsections:
"(4) A taxpayer's election under subsection (1) is taken to have specified
the amount worked out using the steps set out in the following provisions of
this section as the extent to which the taxpayer wishes a particular applied
amount to be regarded as consisting of an eligible component covered by
sub-subparagraph (1)(b)(iii)(A), (B) or (BA).
"(5) Step 1: the applied amount consists of the following notional
components:
(a) the notional concessional component, which is the amount (including a
nil amount) specified in the taxpayer's election under subsection (1) as the
extent to which the taxpayer wishes the applied amount to be regarded as
consisting of the eligible component covered by sub-subparagraph
(1)(b)(iii)(D);
(b) the notional undeducted contributions, which is the amount (including a
nil amount) specified in the taxpayer's election under subsection (1) as the
extent to which the taxpayer wishes the applied amount to be regarded as
consisting of the eligible component covered by sub-subparagraph
(1)(b)(iii)(C);
(c) the notional pre-July 83 component, which is the lesser of the following
amounts:
(i) the amount worked out using the formula:
Pre-July 83
- concessional x Total period
component
where:
'Pre-July 83' is the number of whole days (if any) in the eligible service
period that occurred before 1 July 1983;
'Total period' is the number of whole days in the eligible service period;
(ii) the amount represented by the component (Applied
amount-Notional concessional component) in subparagraph (i), reduced by the
notional undeducted contributions;
(d) the notional post-June 83 component, which is the applied amount reduced
by the other notional components.
"(6) Step 2: if the applied amount includes a notional pre-July 83 component,
the taxpayer's election under subsection (1) is taken to have specified that
notional component as the extent to which the taxpayer wishes the applied
amount to be regarded as consisting of the eligible component covered by
sub-subparagraph (1)(b)(iii)(BA).
"(7) Step 3: if the applied amount includes a notional post-June 83
component, the taxpayer's election under subsection (1) has no effect unless
the following rules are complied with:
(a) the sum of:
(i) the amount specified in the taxpayer's election under
subsection (1) as the extent to which the taxpayer wishes the applied amount
to be regarded as consisting of the eligible component covered by
sub-subparagraph (1)(b)(iii)(A); and
(ii) the amount specified in the taxpayer's election under
subsection (1) as the extent to which the taxpayer wishes the applied amount
to be regarded as consisting of the eligible component covered by
sub-subparagraph (1)(b)(iii)(B);
must equal the notional post-June 83 component of the applied amount;
(b) the amount specified in the taxpayer's election under subsection (1) as
the extent to which the taxpayer wishes the applied amount to be regarded as
consisting of the eligible component covered by sub-subparagraph
(1)(b)(iii)(B) must not exceed the untaxed element of the post-June 83
component of the qualifying eligible termination payment, reduced by the sum
of:
(i) if there are one or more other applied amounts which relate to
one or more earlier qualifying roll-over payments (which other applied amounts
are called 'previous applied amounts')-the amount specified in the taxpayer's
election under subsection (1) as the extent to which the taxpayer wishes the
previous applied amounts to be regarded as consisting of that eligible
component; and
(ii) the untaxed element of the retained amount of the post-June
83 component of the qualifying eligible termination payment;
(c) the amount specified in the taxpayer's election as the extent to which
the taxpayer wishes the applied amount to be regarded as consisting of the
eligible component covered by sub-subparagraph (1)(b)(iii)(A) must not exceed
the sum of:
(i) the taxed element of the post-June 83 component of the
qualifying eligible termination payment, reduced, in a case where there are
one or more other applied amounts which relate to one or more earlier
qualifying roll-over payments (which other applied amounts are called
'previous applied amounts'), by the sum of the amounts specified in the
taxpayer's election under subsection (1) as the extent to which the taxpayer
wishes the previous applied amounts to be regarded as consisting of that
eligible component; and
(ii) if the sum of:
(A) the notional post-June 83 component of the applied amount;
and
(B) if there are one or more other applied amounts-the notional
post-June 83 components of those other applied amounts; and
(C) the retained amount of the post-June 83 component of the
qualifying eligible termination payment;
exceeds the post-June 83 component of the qualifying eligible termination
payment-the amount calculated using the formula:
Notional post-June 83
- Limit calculated + Amount calculated
under paragraph (b) under subparagraph (i).".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 46
Application
(Basic application-amounts rolled-over on or after 1 July 1992)
46.(1) The amendments made by this Division apply to:
(a) an ETP made on or after 1 July 1992; and
(b) an ETP made before 1 July 1992 where:
(i) the roll-over period ended on or after 1 July 1992; and
(ii) no part of the ETP was rolled-over before 1 July 1992.
(Amounts deemed to have been rolled-over before 1 July 1992 if cheque posted
before that date)
(2) For the purposes of subsection (1), if:
(a) an amount is paid as mentioned in paragraph 27A(12)(a), (b) or (c) of
the Principal Act; and
(b) the amount is paid by cheque; and
(c) the cheque was posted before 1 July 1992;
the amount is taken to have been paid before 1 July 1992.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 47
Interpretation
47. Section 27A of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of "roll-over period";
(b) by omitting subsection (6);
(c) by omitting from subsection (12) "during the roll-over period in
relation to the eligible termination payment" and substituting
"immediately after the eligible termination payment is made".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 48
Roll-over of ETPs
48. Section 27D of the Principal Act is amended by omitting from
subparagraph (1)(b)(i) "during the roll-over period in relation to the
qualifying eligible termination payment" and substituting "immediately after
the qualifying eligible termination payment is made".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 49
Application
49. The amendments made by this Division apply in relation to eligible
termination payments made on or after 1 July 1994.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 50
Interpretation
50. Section 27A of the Principal Act is amended:
(a) by inserting before paragraph (k) of the definition of "eligible
termination payment" in subsection (1) the following paragraph:
"(ja) the tax-free amount of a bona fide redundancy payment, or of an
approved early retirement scheme payment, made on or after 1 July 1994;";
(b) by omitting from subsection (1) the definition of "concessional
component" and substituting the following definition:
"'concessional component', in relation to an ETP, means so much of the ETP
as consists of, or is attributable to:
(a) a bona fide redundancy payment made before 1 July 1994; or
(b) an approved early retirement scheme payment made before 1 July 1994; or
(c) an invalidity payment made before 1 July 1994;";
(c) by inserting the following definitions in subsection (1):
"'post-June 1994 invalidity component', in relation to an ETP, means so much
of the ETP as consists of, or is attributable to, an invalidity payment made
on or after 1 July 1994;
'tax-free amount', in relation to a bona fide redundancy payment or an
approved early retirement scheme payment, has the meaning given by subsection
(19);";
(d) by adding at the end the following subsections:
"(19) For the purposes of this Subdivision, the tax-free amount of a bona
fide redundancy payment, or of an approved early retirement scheme payment,
made during a year of income is so much of the payment as does not exceed:
(a) if the year of income is the 1994-95 year of income-the amount worked
out using the formula:
+ $2,000 x Years of service
where:
'Years of service' means the number of whole years in the period, or the
aggregate of the periods, of the employment to which the payment relates; or
(b) if the year of income is a later year of income-the amount worked out
using that formula subject to the indexation arrangements set out in
subsection (20).
"(20) The formula in subsection (19) applies for the 1995-96 year of income
or a later year of income as if each indexable amount were replaced by the
amount worked out using the formula:
x Previous indexable amount
where:
'Indexation factor' means the indexation factor for the year of income
worked out under section 159SG;
'Previous indexable amount' means the indexable amount for the previous year
of income.
"(21): In subsection (20):
'indexable amount' means:
(a) an amount of $4,000 or $2,000 specified in the formula in subsection
(19); or
(b) if that amount has previously been altered under subsection (20)-the
altered amount.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 51
Components of an ETP
51. Section 27AA of the Principal Act is amended:
(a) by inserting after paragraph (1)(a) the following paragraph:
"(aa) the post-June 1994 invalidity component;";
(b) by omitting from paragraph (1)(d) "(ETP-C-NQ-C)" (wherever occurring) and
substituting "(ETP-C-IC-NQ-EC)";
(c) by inserting after the definition of component "C" in subparagraph
(1)(d)(i) the following definition:
"IC is the post-June 1994 invalidity component;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 52
ETP-retained amounts
52. Section 27AC of the Principal Act is amended:
(a) by inserting after paragraph (2)(b) the following paragraph:
"(ba) the retained amount of the post-June 1994 invalidity component is so
much of the post-June 1994 invalidity component as was not rolled-over; and";
(b) by omitting from paragraph (2)(d) the following component (wherever
occurring):
Excessive
amount of Non-qualifying component
- concessional - component - of ETP"
component of ETP
of ETP
and substituting the following component:
Retained
amount of Excessive
amount of post-June Non-qualifying component
- concessional - 1994 - component - of ETP"
component invalidity of ETP
component
of ETP
(c) by inserting after subparagraph (2)(e)(i) the following subparagraph:
"(ia) the retained amount of the post-June 1994 invalidity component of the
ETP; and".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 53
53. After section 27CA of the Principal Act the following section is
inserted:
Exemption from tax-post-June 1994 invalidity component and tax-free amount of
bona fide redundancy payment or approved early retirement scheme payment
(Exemption)
"27CB.(1) If:
(a) an ETP is made in relation to a taxpayer on or after 1 July 1994; and
(b) the ETP includes any of the following amounts ('exempt amounts'):
(i) a post-June 1994 invalidity component;
(ii) a tax-free amount of a bona fide redundancy payment;
(iii) a tax-free amount of an approved early retirement scheme
payment;
then:
(c) the taxpayer's assessable income does not include the exempt amount;
and
(d) the exempt amount is to be ignored in working out whether a capital gain
accrues to the taxpayer under Part IIIA in respect of the making of the ETP.
(Tax-free amount of bona fide redundancy payment, or approved early retirement
scheme payment, to be treated as part of ETP)
"(2) For the purposes of subsection (1), it is to be assumed that paragraph
(ja) of the definition of 'eligible termination payment' in subsection 27A(1)
had not been enacted.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 54
Roll-over of ETPs
54. Section 27D of the Principal Act is amended:
(a) by inserting after sub-subparagraph (1)(b)(iii)(D) the following
sub-subparagraph:
"(E) the post-June 1994 invalidity component;";
(b) by inserting after paragraph (5)(a) the following paragraph:
"(aa) the notional post-June 1994 invalidity component, which is the amount
(including a nil amount) specified in the taxpayer's election under subsection
(1) as the extent to which the taxpayer wishes the applied amount to be
regarded as consisting of the eligible component covered by sub-subparagraph
(1)(b)(iii)(E);";
(c) by omitting from paragraph (5)(c) the following component (wherever
occurring):
Notional
- concessional
component"
and substituting the following component:
Notional post-June
- concessional - 1994 invalidity
component component".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 55
Approved early retirement scheme payments
55. Section 27E of the Principal Act is amended:
(a) by inserting after paragraph (4)(a) the following paragraph:
"(aa) if the eligible termination payment is made on or after 1 July
1994-the payment was not made to the taxpayer from an eligible superannuation
fund;";
(b) by adding at the end the following subsection:
"(6) For the purposes of this section, it is to be assumed that paragraph
(ja) of the definition of 'eligible termination payment' in subsection 27A(1)
had not been enacted.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 56
Bona fide redundancy payments
56. Section 27F of the Principal Act is amended:
(a) by inserting after paragraph (1)(a) the following paragraph:
"(aa) if the eligible termination payment is made on or after 1 July
1994-the payment was not made to the taxpayer from an eligible superannuation
fund;";
(b) by adding at the end the following subsection:
"(3) For the purposes of this section, it is to be assumed that paragraph
(ja) of the definition of 'eligible termination payment' in subsection 27A(1)
had not been enacted.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 57
Invalidity payments
57. Section 27G of the Principal Act is amended by omitting subparagraph
(b)(i) and substituting the following subparagraph:
"(i) because of:
(A) if the eligible termination payment is made before 1 July
1994-the taxpayer's physical or mental incapacity to engage in that
employment; or
(B) if the eligible termination payment is made on or after 1
July 1994-the disability of the taxpayer, where 2 legally qualified medical
practitioners have certified that the disability is likely to result in the
taxpayer being unable ever to be employed in a capacity for which the taxpayer
is reasonably qualified because of education, training or experience; and".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 58
Interpretation
58. Section 27A of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of "ISC-directed
commutation payment";
(b) by omitting from subsection (1) the definition of "excessive component"
and substituting the following definition:
"'excessive component', in relation to an ETP, means so much of the ETP as
the Commissioner has determined under subsection 140R(1) exceeds the
reasonable benefit limits;";
(c) by omitting subsection (12E).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 59
Components of an ETP
59. Section 27AA of the Principal Act is amended:
(a) by omitting paragraphs (3)(b) and (c) and substituting the following
paragraphs:
"(b) the ETP consists of or includes a payment that is an ETP to which
subsection 140M(1) applies; and
(c) the Commissioner does not make a determination under subsection 140R(1)
of the reasonable benefit limits in relation to the ETP;";
(b) by omitting subsection (6).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 60
60. Before Division 15 of Part III of the Principal Act the following
Division is inserted:
"Division 14-Reasonable benefit limits (RBLs)
"Subdivision A-Objects, simplified outline and example
Objects of Division
"140. The objects of this Division are:
(a) to provide for a system of reasonable benefit limits (RBLs) applicable
to certain eligible termination payments (ETPs), superannuation pensions and
annuities; and
(b) to require the payer of such an ETP, pension or annuity to give the
Commissioner information about the ETP, pension or annuity; and
(c) to provide for the Commissioner to determine the extent to which the
ETP, pension or annuity exceeds the recipient's RBLs; and
(d) in the case of an ETP which exceeds the recipient's RBLs-to generate an
excessive component, which is included in assessable income under subsection
27B(3) and not subject to any concessional tax treatment; and
(e) in the case of a pension or annuity which exceeds the recipient's
RBLs-to generate an excessive amount, which is used to work out the proportion
(if any) of the pension or annuity that is rebatable under Subdivision AAB of
Division 17.
Simplified outline (Outline)
"140A.(1) The following is a simplified outline of the scheme of this
Division.
(Step 1-payer of ETP, pension or annuity notifies Commissioner)
"(2) The payer of an ETP, superannuation pension or annuity must give the
Commissioner information about the ETP, pension or annuity (section 140M).
The payer is not required to notify the Commissioner if the ETP, pension or
Section 140ZC sets out
The payer is taken not
to have paid an ETP to the extent to which the ETP is rolled-over (section
140D).
(Step 2-Commissioner determines extent to which the ETP, pension or annuity
exceeds the recipient's RBLs)
"(3) Subdivision D provides for the Commissioner to determine the extent to
which the ETP, pension or annuity exceeds the recipient's RBLs.
(Step 3-Method of determining extent to which the ETP, pension or annuity
('current benefit') exceeds the recipient's RBLs)
Current benefit in excess of recipient's RBLs
TABLE OMITTED
Current benefit not in excess of recipient's RBLs
TABLE OMITTED
"(4) The method of determining the extent to which the ETP, pension or
annuity ('current benefit') exceeds the recipient's RBLs is set out in section
The method may be summarised as follows:
(a) work out the RBL amount of the ETP, pension or annuity (see Subdivision
H);
(b) work out the sum of the adjusted RBL amounts of previous benefits (see
subsections 140ZA(4) and (5));
(c) work out whether the ETP, pension or annuity is to be assessed against
the recipient's lump sum RBL or the recipient's pension RBL (see subsection
140ZA(3) and section 140ZF);
(d) work out the amount of whichever of the lump sum RBL or the pension RBL
is applicable (see Subdivision G);
(e) apply the RBL formula set out in subsection 140ZA(3), namely:
Sum of adjusted Applicable
+ RBL amounts of - RBL
previous benefits
(f) if the amount ('formula amount') calculated using the RBL formula
exceeds 0, then:
(i) the ETP, pension or annuity exceeds the recipient's RBLs; and
(ii) the amount of that excess is equal to so much of the RBL
amount of the ETP, pension or annuity as does not exceed the formula amount;
(g) if the formula amount does not exceed 0, the ETP, pension or annuity is
not in excess of the recipient's RBLs.
Example of how to determine whether a benefit is in excess of the recipient's
RBLs
(Typical example)
"140B.(1) This section sets out how to determine whether a benefit exceeds
the recipient's RBLs in a typical case involving a 61-year old person who
receives a retirement lump sum (ETP) from an employer-sponsored superannuation
The person retires on31 December 1994 at the end of a 10-year period of
All contributions to the superannuation fund were made by the
The amount of the ETP is $500,000. The ETP consists
The
person has not received any previous benefits which count towards the person's
RBLs.
The person is considering the following options:
(a) taking the whole of the ETP (and not rolling-over any of the ETP);
(b) rolling-over the whole of the ETP in the purchase from a life assurance
company of an annuity which meets the pension and annuity standards.
(Option (a)-taking the whole of the ETP (and not rolling-over any of the
ETP))
"(2) If the person takes the whole of the ETP (and does not roll-over any of
the ETP), the RBL amount of the ETP is $500,000(section 140ZH). The ETP will
The
result of applying the RBL formula is as follows:
+ 0 - $400,000 = $100,000
The amount
of that excess is $100,000.
(Option (b)-rolling-over the ETP in the purchase from a life assurance company
of an annuity which meets the pension and annuity standards)
"(3) If the person rolls-over the ETP in the purchase from a life assurance
- SECT 66
Review of certain decisions
66. Section 16 of the Principal Act is amended:
(a) by omitting from subsection (1) "(ab),";
(b) by omitting subsections (1A) and (1B).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 67
Statements to accompany notification of decisions
67. Section 17 of the Principal Act is amended:
(a) by omitting ", or a person," (wherever occurring);
(b) by omitting "or the person" (wherever occurring).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 68
Regulations
68. Section 22 of the Principal Act is amended by omitting paragraph (d).
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 69
Application
69.(1) In spite of the amendments made, and the repeal effected, by this
Division, the RBL provisions of the Principal Act continue to apply, subject
to the changes set out in subsection (2) of this section, as if those
amendments had not been made and that repeal had not been effected.
(2) The changes are as follows:
(a) paragraphs 15G(1)(a), 15H(2)(a) and 15P(1)(a) of the Principal Act do
not apply to an eligible termination payment made on or after 1 July 1994;
(b) paragraphs 15G(1)(b), 15H(2)(c) and 15P(1)(b) of the Principal Act do
not apply to an annuity where the payer commenced to make payments on or after
1 July 1994;
(c) paragraphs 15G(1)(a), 15H(2)(b) and 15P(1)(a) of the Principal Act do
not apply to payments of a superannuation pension where the payer commenced to
make payments on or after 1 July 1994;
(d) subsection 15J(1) of the Principal Act does not apply to an eligible
termination payment made on or after 1 July 1994;
(e) subsection 15J(2) of the Principal Act does not apply to an entitlement
to an eligible termination payment that arises on or after 1 July 1994.
(3) For the purposes of subsection (2), the payer of a superannuation
pension or an annuity is taken to have commenced to make payments of the
pension or annuity on the first day of the period to which the first payment
of the pension or annuity relates.
(4) In this section:
"RBL provisions of the Principal Act" means:
(a) Part IIIA of the Principal Act; and
(b) the remaining provisions of the Principal Act in so far as they relate
to Part IIIA of the Principal Act.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 70
Interpretation
70. Section 3 of the Principal Act is amended by adding at the end the
following subsections:
"(6) For the purposes of paragraph (b) of the definition of 'superannuation
fund' in subsection (1), a fund is taken to provide a benefit for a member of
the fund as the result of a particular event even if, at the request of the
member, the trustees of the fund delay the provision of the whole or a part of
the benefit for up to 90 days after the member becomes entitled to the
benefit.
"(7) Subsection (6) does not, by implication, limit the circumstances in
which the trustees of a fund may delay the provision of benefits in
circumstances that are consistent with paragraph (b) of the definition of
'superannuation fund' in subsection (1).".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 71
Application
71. The amendment made by this Division applies in relation to entitlements
to benefits arising on or after 1 July 1994.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 72
Interpretation
72. Section 3 of the Principal Act is amended:
(a) by inserting after subparagraph (b)(iii) of the definition of
"superannuation fund" in subsection (1) the following subparagraph:
"(iv) the provision of pensions for each transferred retiree
member of the fund;";
(b) by inserting in subsection (1) the following definition:
"'transferred retiree member', in relation to a fund, means a member of the
fund where:
(a) the member has retired from the business, trade, profession, vocation,
calling, occupation or employment in which the member had been engaged
(whether the member's retirement occurred before, or occurred after, the
member joined the fund); and
(b) at or after the member's retirement, an amount was paid to the trustees
of the fund in respect of the member by:
(i) the trustees of another fund, being a superannuation fund or
an approved deposit fund; or
(ii) a life assurance company; or
(iii) a registered organisation;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 73
Application
73. The amendments made by this Division apply in relation to the provision
of pensions after the commencement of this section, regardless of whether the
members concerned retired before or after the commencement of this section.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 74
Interpretation
74. Section 3 of the Principal Act is amended by inserting in subsection (1)
the following definitions:
"'annuity' includes a benefit provided by a life assurance company or a
registered organisation, where the benefit is taken, under the regulations, to
be an annuity for the purposes of this Act;
'pension' includes a benefit provided by a fund, where the benefit is taken,
under the regulations, to be a pension for the purposes of this Act;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 75
Operating standards for superannuation funds
75. Section 7 of the Principal Act is amended by inserting after paragraph
(2)(d) the following paragraph:
"(da) the form in which benefits may be provided by superannuation funds;".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 76
Transitional
76.(1) The first regulations made for the purposes of:
(a) the definitions of "annuity" and "pension" in subsection 3(1) of the
amended Act; or
(b) paragraph 7(2)(da) of the amended Act;
may be expressed to apply as follows:
(c) to the extent that the regulations relate to annuities-to annuities
purchased after the commencement of this section;
(d) to the extent that the regulations relate to pensions-to payments of
pensions made after the commencement of this section.
(2) In this section:
"amended Act" means the Principal Act as amended by this Act.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 77
Principal Act
77. In this Part, "Principal Act" means the Superannuation Guarantee
(Administration) Act 1992.*3*
*3* No. 111, 1992.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 78
Interpretation: notional earnings base where employer contributing to
superannution fund for benefit of employee immediately before 21 August 1991
78. Section 13 of the Principal Act is amended:
(a) by inserting after paragraph (1)(a) the following paragraph:
"(ab) where the employer is contributing to the fund in accordance with a
law of the Commonwealth, a State or a Territory for the benefit of the
employee in relation to a contribution period and:
(i) was so contributing immediately before 21 August 1991; or
(ii) was contributing to the fund in accordance with the law in
question for the benefit of another employee immediately before 21 August
1991;";
(b) by omitting subsection (2) and substituting the following subsection:
"(2) Subject to subsections (3) and (4), the expression 'notional earnings
base' means the reference earnings in relation to the employee that, under the
award, arrangement, law or scheme as in force on:
(a) the first day of the contribution period; or
(b) the first day of employment;
whichever is the later, constitute the earnings by reference to which the
requisite employer contribution is to be calculated in relation to the
employee.";
(c) by inserting in subsection (4) ", law" after "arrangement";
(d) by adding at the end the following subsection:
"(5) In this section:
'reference earnings', in relation to an employee, means:
(a) if the employer is contributing for the benefit of the employee in
accordance with an industrial award, or a law of the kind referred to in
paragraph (1)(ab) (other than this Act), that specifies the requisite employer
contribution by reference to the earnings of a member of a class of employees
identified by the award or law-those earnings; and
(b) in any other case-the earnings of the employee.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 79
Interpretation: notional earnings base where employer not contributing
to superannuation fund for benefit of employee immediately before 21
August 1991
79. Section 14 of the Principal Act is amended:
(a) by inserting after paragraph (1)(a) the following paragraph:
"(ab) where the employer is contributing to the fund in accordance with a
law of the Commonwealth, a State or a Territory for the benefit of the
employee in relation to a contribution period but was not so contributing
immediately before 21 August 1991 for the benefit of any employee;";
(b) by inserting in subsection (2) "(2A), (2B)," and ", law" after
"subsections" and "arrangement" respectively;
(c) by inserting after subsection (2) the following subsections:
"(2A) If:
(a) the employer is contributing for the benefit of the employee to the fund
in accordance with an industrial award, or a law of a kind referred to in
paragraph (1)(ab), that was operative immediately before 21 August 1991; and
(b) section 13 would operate to determine a notional earnings base in
relation to the employee if the employer had been so contributing immediately
before 21 August 1991;
the notional earnings base in relation to the employee is the notional
earnings base referred to in paragraph (b).
"(2B) If:
(a) the employer is contributing for the benefit of the employee to the fund
in accordance with the agreement referred to in Order No. 292 of 1992 of the
Coal Industry Tribunal of New South Wales and known as the New South Wales
Coal Mining Industry Statutory Superannuation Fund (Salary Sacrifice)
Agreement; and
(b) section 13 would operate to determine a notional earnings base in
relation to the employee if the employer had been so contributing immediately
before 21 August 1991;
the notional earnings base in relation to the employee is the notional
earnings base referred to in paragraph (b).";
(d) by inserting in subsection (3) ", a law of a kind referred to in
paragraph (1)(ab)" after "arrangement".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 80
Reduction of charge percentage where contribution made to fund other
than defined benefit superannuation scheme
80. Section 23 of the Principal Act is amended:
(a) by omitting subsection (2) and substituting the following subsection:
(Reduction of charge percentage where contribution made under industrial award
or law)
"(2) Subject to subsections (6) and (7), if, in a contribution period:
(a) an employer is required by an industrial award or a law of a kind
referred to in paragraph 13(1)(ab) or 14(1)(ab) to contribute for the benefit
of an employee to a superannuation fund; and
(b) the requisite contribution is a specified percentage of the employee's
notional earnings base or a percentage of that base calculated in accordance
with the award or law; and
(c) the employer contributes to a complying superannuation fund for the
benefit of the employee in accordance with the award or law;
the charge percentage for the employer, as calculated under section 20 or 21,
in respect of the employee for the contribution period is reduced, in addition
to any other such reduction made under this section or section 22, by the
amount worked out using the formula:
x B
where:
'A' is the amount of the percentage figure that expresses the contribution
to the fund referred to in paragraph (c) as a proportion of the total amount
of the employee's notional earnings base:
(A) if the employee is employed under the industrial award or
law for the whole of the contribution period-for the whole of that period; or
(B) if the employee is employed under the award or law for a
part of the period-for that part of the period;
'B' is:
(A) 1; or
(B) if, in relation to the contribution period, the period for
which the employee is employed by the employer is greater than the period of
employment under the industrial award or law referred to in paragraph (a)-the
fraction that represents the period of employment under the award or law as a
proportion of the period of employment in the contribution period.";
(b) by omitting subsection (9) and substituting the following subsection:
"(9) An industrial award, an occupational superannuation arrangement, a law
of a kind referred to in paragraph 13(1)(ab) or 14(1)(ab) or a superannuation
scheme is to be taken not to specify the requisite employer contribution as a
percentage of an employee's notional earnings base if the award, arrangement,
law or scheme:
(a) determines the earnings of the employee by reference to which the
requisite employer contribution is to be calculated by specifying an amount of
money; and
(b) makes no provision for adjustment of that amount by reference to changes
in the earnings of an employee.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 81
81. After section 25 of the Principal Act the following section is
inserted:
Certain contributions taken to be in accordance with industrial award that
specifies notional earnings base
"25A.(1) This section applies to an industrial award if:
(a) the award specifies an amount of money ('the contribution amount'), in
relation to a class of employees identified by the award, as a requisite
contribution by an employer to a superannuation fund for the benefit of an
employee in the class ('a relevant employee'); and
(b) that amount is required, whether by the award or otherwise, to be
adjusted, if there is an increase in the earnings ('the adjustment earnings')
of the employees in a certain class of employees identified by the award, by
reference to that increase.
"(2) If, in relation to a contribution period, an employer:
(a) is contributing, for the benefit of a relevant employee, to a
superannuation fund under an industrial award to which this section applies;
and
(b) the award was operative immediately before 21 August 1991 and has not,
on or after that day, been amended in a way that has the effect of reducing an
employee's notional earnings base;
the employer is taken, for the purposes of subsection 23(2), to have made a
contribution to the fund in accordance with an industrial award that
specifies, as the percentage referred to in paragraph 23(2)(b), the percentage
that represents the contribution amount as a proportion of the employee's
notional earnings base in relation to the contribution period for the purposes
of subsection 23(2).
"(3) Subject to subsection (4), the employee's notional earnings base in
relation to a contribution period for the purposes of subsection 23(2) is the
adjustment earnings in respect of that period.
"(4) If the employee's notional earnings base in relation to a contribution
period under subsection (3) would be an amount greater than the maximum
contribution base for that period, the employee's notional earnings base is
the amount equal to the maximum contribution base.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 82
Application of amendments relating to notional earnings base
82. The amendments made by sections 78, 79, 80 and 81 have effect as if
those sections had commenced on 1 July 1992, immediately after the
commencement of the Principal Act.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 83
Interpretation: maximum contribution base
83. Section 15 of the Principal Act is amended by omitting from subsection
(2) "1992-93" and substituting "1993-94".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 84
Individual superannuation guarantee shortfall for 1992-93
84. Section 18 of the Principal Act is amended by adding at the end the
following subsection:
"(3) If the total salary or wages paid by an employer to an employee in a
half-year exceeds the maximum contribution base for the contribution period
that corresponds to that half-year, the total salary or wages to be taken into
account for the purposes of the application of subsection (2) in relation to
the half-year is the amount equal to the maximum contribution base.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 85
Individual superannuation guarantee shortfall for 1993-94 and
subsequent years
85. Section 19 of the Principal Act is amended by adding at the end the
following subsection:
"(3) If the total salary or wages paid by an employer to an employee in a
quarter exceeds the maximum contribution base for the contribution period that
corresponds to that quarter, the total salary or wages to be taken into
account for the purposes of the application of subsection (2) in relation to
the quarter is the amount equal to the maximum contribution base.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 86
Reduction of charge percentage where contribution made to defined
benefit superannuation scheme
86. Section 22 of the Principal Act is amended:
(a) by omitting from paragraph (2)(a) "whole or a part" and substituting
"whole or part";
(b) by inserting in subsection (3) ", or the aggregate of the periods,"
after "means the period" (wherever occurring);
(c) by adding at the end the following subsection:
"(5) For the purposes of a calculation under this section in relation to an
employer and an employee:
(a) a period of leave of absence without pay granted by the employer to the
employee is not to be taken into account as a period for which the employee is
employed by the employer; and
(b) a benefit certificate is taken not to have effect in relation to the
employee in respect of such a period.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 87
Certain benefit certificates presumed to be certificates in relation
to complying superannuation scheme
87. Section 24 of the Principal Act is amended:
(a) by omitting from paragraph (1)(a) all the words from and including "day
on which" to and including "commences" and substituting "starting day in
relation to that certificate";
(b) by omitting from paragraph (2)(b) all the words from and including "day
on which" to and including "commences" and substituting "starting day in
relation to that certificate";
(c) by adding at the end the following subsection:
"(5) In this section:
'starting day' means:
(a) in relation to a benefit certificate that has effect in relation to a
superannuation scheme for the whole of a contribution period:
(i) the day on which the contribution period commenced; or
(ii) if the contribution period commenced on 1 July 1992-the day
on which the Taxation Laws Amendment (Superannuation) Act 1992 received the
Royal Assent; and
(b) in relation to a benefit certificate that has effect in relation to a
superannuation scheme for a part of a contribution period:
(i) the day on which the part of the contribution period
commenced; or
(ii) if the contribution period commenced on 1 July 1992-the day
on which the part of the contribution period commenced or the day on which the
Taxation Laws Amendment (Superannuation) Act 1992 received the Royal Assent,
whichever is the later.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 88
Salary or wages: general exclusions
88. Section 27 of the Principal Act is amended:
(a) by adding at the end of subsection (1) the following paragraph:
"(e) salary or wages prescribed for the purposes of this paragraph.";
(b) by omitting subsection (2) and substituting the following subsection:
"(2) If an employer pays an employee less than $450 by way of salary or wages
in a month, the salary or wages so paid are not to be taken into account for
the purpose of making a calculation, in relation to the employer and the
employee, under section 18 or 19.".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 89
Application of amendments relating to excluded salary or wages
89. The amendments made by section 88 have effect as if that section had
commenced on 1 July 1992, immediately after the commencement of the Principal
Act.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 90
Principal Act
90. In this Part, "Principal Act" means the Taxation Administration Act
1953.*4*
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); Nos. 95 and 97, 1988; Nos. 97, 105, 107, 124, 163
and 167, 1989; Nos. 20, 60, 61, 110, 119 and 136, 1990; Nos. 5, 6, 48, 100,
122 and 216, 1991; and Nos. 47, 92, 98 and 101, 1992.
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 91
Interpretation
91. Section 8J of the Principal Act is amended by renumbering paragraph
(2)(na), inserted by the Superannuation Guarantee (Consequential Amendments)
Act 1992, as "(nb)".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 92
Penalty taxes to be alternative to prosecution for certain offences
92. Section 8ZE of the Principal Act is amended by renumbering paragraph
(3)(ga), inserted by the Superannuation Guarantee (Consequential Amendments)
Act 1992, as "(gb)".
TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992
- SECT 93
General interpretative provisions
93. Section 14ZQ of the Principal Act is amended:
(a) by renumbering paragraph (ea) of the definition of "delayed
administration (beneficiary) objection", inserted by the Superannuation
Guarantee (Consequential Amendments) Act 1992, as "(eb)";
(b) by renumbering paragraph (ea) of the definition of "delayed
administration (trustee) objection", inserted by the Superannuation Guarantee
(Consequential Amendments) Act 1992, as "(eb)".
The
comprises Act No. 208, 1992 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 |
208, 1992 | 22 Dec 1992 | |||
7, 1993 | 27 May 1993 | Ss. 63 and 64: 22 Dec 1992 S. 65: 1 July 1994 | S. 64 | |
82, 1993 | 30 Nov 1993 | S. 79: 1 July 1994 | — | |
169, 1995 | 16 Dec 1995 | Schedule 10 (item 9): | — | |
75, 2010 | 28 June 2010 | Schedule 6 (item 106): 29 June 2010 | — |
(a) Subsection 2(10) of theTaxation Laws Amendment Act (No. 2) 1995 provides as follows:
(10) Part 5 of Schedule 10 is taken to have commenced immediately after the
commencement of Division 9 of Part 2 of the
Taxation Laws Amendment
(Superannuation) Act 1992 .Division 9 of Part 2 of the
Taxation Laws Amendment (Superannuation) Act 1992 commenced on 1 July 1994.
| |
Provision affected | How affected |
S. 35......................................... | rep. No. 7, 1993 |
S. 49......................................... | rs. No. 169, 1995 |
S. 51......................................... | am. No. 7, 1993 |
Div. 12 of Part 2........................ | rep. No. 75, 2010 |
S. 62......................................... | rep. No. 75, 2010 |
S. 69......................................... | am. No. 82, 1993 |
Taxation Laws Amendment (Superannuation) Act 1993 (No. 7, 1993)
The amendment made by this Division applies to annuities purchased on or after 22 December 1992.
0
0
0