Taxation Laws Amendment (Superannuation) Act 1993 (Cth)

Case
No judgment structure available for this case.

Taxation Laws Amendment (Superannuation) Act 1993

Act No. 7 of 1993 as amended

This compilation was prepared on 17 September 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

1.

Short title [see Note 1]

2.

Commencement [see Note 1]

PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 1 - Principal Act

3.

Principal Act

Division 2 - Amendments of the definition of "fixed interest

complying ADF"

4.

Fixed interest complying ADFs - exemption of income attributable

to certain 25 May 1988 deposits

5.

Application

Division 3 - Amendments relating to notification requirements

for superannuation contributions

6.

Deductions for superannuation contributions by eligible persons

7.

Deductions for superannuation contributions by eligible persons

8.

Interpretation

9.

Taxable contributions

10.

Contribution notices or eligible person notices given after return

lodgment date

11.

Application

Division 4 - Amendments relating to ETP rules for death benefits

12.

Interpretation

13.

Insertion of new section:

27AAA.

Special rules for death benefits

14.

Assessable income to include certain superannuation and similar

payments

15.

Interpretation

16.

Repeal and substitution of new section:

159SA.

Rebate to ensure upper limit on tax on eligible

assessable income

17.

Repeal of sections 159SB, 159SC, 159SD and 159SE

18.

Upper limit for working out residual amount

19.

Repeal of section 159SH

20.

Application

Division 5 - Amendments relating to RBL rules for death benefits

21.

Insertion of new section:

140CA.

Deceased person's RBL to be used to calculate excessive

component for death benefit ETPs

22.

Revision of final determinations

23.

Benefits which are counted towards a person's RBLs

24.

Assessment of benefits against lump sum RBL

25.

Application

Division 6 - Amendments relating to the tax treatment of the

excessive component of ETPs

26.

Notional income where assessable income includes consideration

receivable on disposal, loss or destruction of depreciated

property

27.

Notional income of a taxpayer deriving a premium

28.

Capital gains, abnormal income and ETP excessive component to be

disregarded

29.

Application

Division 7 - Amendments to extend the meaning of annuities

30.

Interpretation

31.

Interpretation

32.

Interpretation

33.

Application

PART 3 - AMENDMENT OF THE INCOME TAX RATES ACT 1986

Division 1 - Principal Act

35.

Principal Act

Division 2 - Amendments relating to the tax treatment of the

excessive component of ETPs

36.

Interpretation

37.

Schedule 7

38.

Schedule 8

39.

Schedule 9

40.

Schedule 10

41.

Schedule 11

42.

Schedule 12

43.

Application

PART 4 - AMENDMENT OF THE OCCUPATIONAL SUPERANNUATION STANDARDS ACT

1987

Division 1 - Principal Act

44.

Principal Act

Division 2 - Amendments relating to transferred retiree members of

superannuation funds

45.

Interpretation

46.

Application

Division 3 - Amendments relating to the notification of breaches of

superannuation fund conditions

47.

Notices as to satisfaction of the superannuation fund conditions

48.

Application

49.

Transitional

Division 4 - Amendments relating to prospectuses

50.

Interpretation

51.

Insertion of new section:

12A.

Commissioner may modify application of standards

relating to prospectuses

52.

Review of certain decisions

Division 5 - Amendments relating to disclosure of information about

superannuation funds

53.

Secrecy

Division 6 - Amendments relating to notification requirements for

ETP payers

54.

Payers must provide certain information

55.

Application

PART 5 - AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION)

ACT 1992

Division 1 - Principal Act

56.

Principal Act

Division 2 - Amendments relating to defined benefit superannuation

schemes

57.

Interpretation: general

58.

Insertion of new sections:

6A.

Interpretation: defined benefit superannuation scheme

6B.

Interpretation: conversion notice

59.

Interpretation: benefit certificate

60.

Reduction of charge percentage where contribution made to fund

other than defined benefit superannuation scheme

61.

Application

PART 6 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (SUPERANNUATION)

ACT 1992

Division 1 - Principal Act

62.

Principal Act

Division 2 - Amendments relating to the meaning of annuities

63.

Repeal of section 35

64.

Application

Division 3 - Amendments relating to the components of an ETP

65.

Components of an ETP

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993 - LONG TITLE

An Act to amend the law relating to taxation

PART 1 - PRELIMINARY

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 1

Short title [see Note 1]

1. This Act may be cited as the Taxation Laws Amendment (Superannuation) Act

1993.

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 2

Commencement [see Note 1]

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 4 and 6 of Part 2;

(b) Division 2 of Part 3;

(c) Division 3 of Part 6.

(3) Division 5 of Part 2 and section 7 commence immediately after the

commencement of Division 4 of Part 2 of the Taxation Laws Amendment

(Superannuation) Act 1992.

(4) Sections 47 and 48 commence on a day to be fixed by Proclamation.

(5) If sections 47 and 48 do not commence under subsection (4) within the

period of 6 months beginning on the day on which this Act receives the Royal

Assent, they commence on the first day after the end of that period.

(6) Divisions 1 and 2 of Part 6 are taken to have commenced on 22 December

1992.

PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 1 - Principal Act

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- 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, 101,

118, 138, 190, 191, 208, 224, 227, 237 and 238, 1992.

Division 2 - Amendments of the definition of "fixed interest

complying ADF"

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 4

Fixed interest complying ADFs-exemption of income attributable to

certain 25 May 1988 deposits

4. Section 290A of the Principal Act is amended:

(a) by omitting "either or both" from paragraph (a) of the definition of

"fixed interest complying ADF" in subsection (4) and substituting "any one or

more";

(b) by inserting after subparagraph (a)(i) of the definition of "fixed

interest complying ADF" in subsection (4) the following subparagraph:

"(ia) any profit arising on the disposal, redemption, cancellation or

maturity of a security (within the meaning of Division 10);".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 5

Application

5. The amendments made by this Division apply to assessments for the year of

income in which 1 July 1988 occurred and for all later years of income.

Division 3 - Amendments relating to notification requirements for

superannuation contributions

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 6

Deductions for superannuation contributions by eligible persons

6. Section 82AAT of the Principal Act is amended by omitting subsections (1)

to (1D) (inclusive) and substituting the following subsections:

"(1) A person who has made a contribution to a fund during a year of income

is entitled to an allowable deduction for the contribution in the person's

assessment for the year of income if all the following conditions are met:

(a) the person is an eligible person in relation to the year of income;

(b) the person made the contribution in order to obtain superannuation

benefits for the person or for dependants of the person in the event of the

person's death;

(c) the fund is a complying superannuation fund for the fund's year of

income in which the person made the contribution;

(d) the person has given a notice under subsection (1A) in respect of the

contribution and the trustee of the fund has acknowledged that notice under

subsection (1A).

The deduction cannot be more than the amount covered by the notice under

subsection (1A), and is also subject to the limits in subsection (2).

"(1A) A person who is making or has made a contribution to a fund may give a

written notice to the trustee of the fund, stating that the person intends to

claim a deduction under this section for the whole or a specified part of the

contribution. The trustee must, without delay, give the person a notice

acknowledging receipt of the person's notice.

"(1B) The following restrictions apply to notices under subsection (1A):

(a) a person cannot give a notice that covers the whole or any part of an

amount covered by a previous notice;

(b) a person cannot give a notice to the trustee of a fund after the person

has ceased to be a member of the fund;

(c) a person cannot revoke or withdraw a notice (but may vary it under

subsection (1C)).

"(1C) A person may at any time give written notice to the trustee of a fund

reducing the amount covered by a notice under subsection (1A), but not below

the amount that has been allowed as a deduction to the person under this

section for contributions covered by the notice.

"(1D) Notices under this section must be given in the form and manner

approved by the Commissioner in writing for the purposes of this section.

"(1E) A person is not entitled to a deduction under this section for a

contribution unless the person receives the acknowledgment mentioned in

subsection (1A) before the Commissioner makes the relevant assessment.

However, if the person later receives the acknowledgment, the Commissioner may

amend the assessment to allow the deduction.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 7

Deductions for superannuation contributions by eligible persons

7. Section 82AAT of the Principal Act is amended by omitting paragraph

(2A)(a) and substituting the following paragraph:

"(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 for which the

taxpayer would be entitled to a deduction under this section (ignoring the

notice requirements of paragraph (1)(d) and subsection (1A) and the limits in

subsection (2)); and".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 8

Interpretation

8. Section 267 of the Principal Act is amended by omitting from subsection

(1) the definitions of "approved form", "approved manner" and "approved

person".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 9

Taxable contributions

9. Section 274 of the Principal Act is amended:

(a) by omitting from subsection (1) "are taxable contributions" and

substituting "in a year of income ('the contribution year') are taxable

contributions in relation to the contribution year";

(b) by omitting subparagraph (1)(b)(i) and substituting the following

subparagraph:

"(i) a contribution of the kind mentioned in paragraph 82AAT(1)(b),

to the extent to which the contribution:

(A) is covered by a notice under subsection 82AAT(1A) received by

the trustee of the fund before the date on which the trustee lodges the return

of income of the fund for the contribution year; and

(B) has not been rolled-over as mentioned in paragraph

27A(13)(a);";

(c) by omitting subsections (2) to (5) (inclusive) and substituting the

following subsection:

"(2) Subject to this Division, if:

(a) in a year of income ('the notice year') the trustee of a fund receives a

notice under subsection 82AAT(1A) in relation to contributions that were made

to the fund during a year of income ('the contribution year') in relation to

which the fund was a complying superannuation fund; and

(b) the trustee receives the notice after the date on which the trustee

lodged the return of income of the fund for the contribution year;

the contributions, to the extent to which they are covered by the notice, are

taxable contributions in relation to the notice year.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 10

Contribution notices or eligible person notices given after return lodgment

date

10. Section 276 of the Principal Act is amended:

(a) by omitting subsections (1) and (3) and substituting the following

subsections:

"(1) Subject to this section, if:

(a) in a year of income ('the notice year') the trustee of a fund receives a

notice under subsection 82AAT(1C) in relation to contributions that were made

to the fund in an earlier year of income ('the contribution year'); and

(b) the trustee receives the notice after the date on which the trustee

lodged the return of income of the fund for the contribution year; and

(c) apart from this section and section 275, the assessable income of the

fund of the contribution year would include an amount ('the clawback amount')

that would not have been included if the trustee had received the notice

before that date;

the clawback amount is allowable as a deduction from the assessable income of

the fund of the notice year.

"(3) If the Commissioner is satisfied that it would be appropriate for the

clawback amount not to be included in the assessable income of the fund of the

contribution year:

(a) so much of the contribution as equals the clawback amount is taken for

the purposes of this Part (other than this section) never to have been a

taxable contribution; and

(b) the clawback amount is not allowable as a deduction under subsection

(1).";

(b) by omitting from subsection (4) "The matters to which the Commissioner

is to have regard are" and substituting "The Commissioner must have regard to

the following matters in deciding whether to apply subsection (3)".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 11

Application

11. The amendments made by this Division (other than section 7) apply to

contributions made on or after 1 July 1992, other than such contributions made

to a fund by a person who ceased to be a member of the fund before the date on

which this Act received the Royal Assent.

Division 4 - Amendments relating to ETP rules for death benefits

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 12

Interpretation

12. Section 27A of the Principal Act is amended:

(a) by omitting subparagraphs (aa)(ii), (ba)(ii) and (ca)(ii) of the

definition of "eligible termination payment" in subsection (1);

(b) by inserting in subsection (1) the following definition:

" 'death benefit ETP' means an ETP that is a death benefit within the

meaning of section 27AAA;";

(c) by omitting subsections (4), (4A), (5BA) and (12D);

(d) by omitting subsection (12B) and substituting the following subsection:

"(12B) A death benefit ETP is not a qualifying eligible termination payment,

in spite of anything in subsection (12).";

(e) by omitting from paragraph (12C)(a) "paragraph (g) or (h)" and

substituting "paragraph (d), (g) or (h)".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 13

13. After section 27A of the Principal Act the following section is

inserted:

Special rules for death benefits

(Outline of section)

"27AAA.(1) This section:

(a) defines the types of payments that are treated as death benefits for the

purpose of the rules providing for taxing of ETPs; and

(b) provides concessional treatment for death benefits that are paid in

relation to dependants.

(Table of death benefits)

"(2) Table 1 sets out the payments that are death benefits for the purposes

of this section. In applying the table, the dependant's concessions provided

by this section are ignored in deciding whether a payment is covered by a

particular ETP paragraph.

TABLE 1-DEATH BENEFITS

Item

ETP When payment is a death benefit Dependant's

paragraph

concession (if

any)

1

(a), (b), if the payment is made after the calculated

(c), (d),

death of the taxpayer to the under

(e), (g) or

trustee of the taxpayer's estate subsection (3)

(h)

2

(aa), (ba), always calculated

(ca), (db),

under

(f), (gb) or

subsection (4)

(j)

3

(da) or always calculated

(ga)

under

subsection (3)

4

(d) or (g) if the payment is connected calculated

with a deceased person as

under

described in subsection (6)

subsection (4)

and is made within the period

specified in subsection (7)

(Dependant's concession for Items 1 and 3)

"(3) In the case of a death benefit covered by Item 1 or 3 in Table 1, the

amount that would otherwise be an ETP in relation to the deceased taxpayer is

to be reduced by such amount (if any) as the Commissioner considers

appropriate having regard to the extent to which dependants of the deceased

taxpayer may reasonably be expected to benefit from the estate. However, the

ETP is not to be reduced to an amount less than the notional excessive

component (if any) that applies to the death benefit under subsection (5).

(Dependant's concession for Items 2 and 4)

"(4) This subsection applies if a death benefit covered by Item 2 or 4 in

Table 1 is paid to a taxpayer who was a dependant of the deceased person

referred to in the relevant ETP paragraph, either at the time of the deceased

person's death or at the time of payment of the death benefit. The amount that

would otherwise be an ETP in relation to the taxpayer is not to exceed the

notional excessive component (if any) that applies to the death benefit under

subsection (5).

(Notional excessive component of a death benefit)

"(5) The notional excessive component of a death benefit is the amount that

would be worked out under Division 14 as the excessive component of the death

benefit if the whole of the death benefit were treated as an ETP for the

purposes of that Division.

(Required link with deceased person for Item 4 death benefit)

"(6) In order to be covered by Item 4 in Table 1, the pension or annuity

that was commuted as mentioned in ETP paragraph (d) or (g) must be a pension

or annuity that:

(a) before it became payable to the taxpayer, was payable to another person

who has died; or

(b) became payable to the taxpayer because of the death of another person.

(Period for paying Item 4 death benefit)

"(7) In order to be covered by Item 4 in Table 1, the payment must be made:

(a) within 6 months after the death of the deceased person mentioned in

subsection (6); or

(b) within 3 months after the grant of probate of that deceased person's

will or letters of administration of that deceased person's estate;

whichever is the longer period.

(Definitions)

"(8) In this section:

'ETP paragraph' means any of the paragraphs of the definition of 'eligible

termination payment' in subsection 27A(1).".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 14

Assessable income to include certain superannuation and similar payments

14. Section 27B of the Principal Act is amended:

(a) by inserting in subsection (1) "(other than a death benefit ETP)" after

"an ETP";

(b) by inserting after subsection (1) the following subsection:

"(1A) If a death benefit ETP is made in relation to a taxpayer in relation

to 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 1993 No. 7 of 1993

- SECT 15

Interpretation

15. Section 159S of the Principal Act is amended:

(a) by inserting "or (1A)" after "27B(1)" in paragraph (c) of the definition

of "eligible assessable income";

(b) by omitting the definitions of "golden handshake ETP", "life assurance

company", "registered organization", "residual amount", "rolled-over",

"s.27B(1) amount", "start date", "superannuation-related ETP", "Table 1" and

"Table 2";

(c) by inserting the following definitions:

" 's.27B(1A)(a) amount' means an amount included in assessable income under

paragraph 27B(1A)(a);

's.27B(1A)(b) amount' means an amount included in assessable income under

paragraph 27B(1A)(b);".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 16

16. Section 159SA of the Principal Act is repealed and the following section

is substituted:

Rebate to ensure upper limit on tax on eligible assessable income

"159SA.(1) If the assessable income of the taxpayer of the current year of

income includes any eligible assessable income, the taxpayer is entitled to a

rebate of tax in the taxpayer's assessment of such amount (if any) as will

ensure that the rate of tax on a rebatable amount specified in Table 1 will

not be more than the corresponding rate of tax specified in that table.

TABLE 1-MAXIMUM RATES OF TAX ON ELIGIBLE ASSESSABLE INCOME

Item

Class of eligible assessable income Corresponding Rates of

rebatable

tax (%)

amount

1

current year's total of taxpayer's derived 20

s.27B(1)(a) amounts for non-age 55 ETPs

low rate part 0

2

current year's total of taxpayer's

s.27B(1)(a) amounts for age 55 ETPs

3

current year's total of taxpayer's remaining part 15

s.27B(1)(a) amounts for age 55 ETPs

4

current year's total of taxpayer's derived 30

s.27B(1)(b) amounts for non-age 55 ETPs

low rate part 15

5

current year's total of taxpayer's

s.27B(1)(b) amounts for age 55 ETPs

6

current year's total of taxpayer's remaining part 30

s.27B(1)(b) amounts for age 55 ETPs

7

current year's total of taxpayer's derived 15

s.27B(1A)(a) amounts

8

current year's total of taxpayer's derived 30

s.27B(1A)(b) amounts

9

current year's total of taxpayer's derived 30

eligible assessable income (excluding

amounts covered by Items 1 to 8)

"(2) The rebatable amount for a particular class of eligible assessable

income in Table 1 is worked out as follows:

(a) the 'derived amount' is so much of the taxable part of the taxable

income as is attributable to that class;

(b) subject to subsection (3), the 'low rate part' is so much of the derived

amount for the class as does not exceed the residual amount under section

159SF for the current year;

(c) the 'remaining part' is so much of the derived amount for the class as

is left over after deducting the low rate part.

"(3) The total of the low rate parts for the current year cannot be more

than the residual amount under section 159SF for the current year.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 17

Repeal of sections 159SB, 159SC, 159SD and 159SE

17. Sections 159SB, 159SC, 159SD and 159SE of the Principal Act are

repealed.

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 18

Upper limit for working out residual amount

18. Section 159SG of the Principal Act is amended by omitting paragraphs

(1)(a) and (b).

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 19

Repeal of section 159SH

19. Section 159SH of the Principal Act is repealed.

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 20

Application

20. The amendments made by this Division apply to payments made on or after

1 July 1994.

Division 5 - Amendments relating to RBL rules for death benefits

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 21

21. After section 140C of the Principal Act the following section is

inserted:

Deceased person's RBL to be used to calculate excessive component for death

benefit ETPs

"140CA.(1) This section applies in cases where (apart from this section) the

recipient for a death benefit ETP ('the current ETP') is not the relevant

deceased person for the ETP.

"(2) The current ETP is to be treated as being an ETP in relation to the

relevant deceased person (and not in relation to the person who would be the

recipient apart from this section) for the purpose of working out:

(a) the extent to which the current ETP has an excessive component; and

(b) the extent to which any other ETP in relation to the relevant deceased

person, or any other person, has an excessive component.

"(3) In this section:

'death benefit ETP' means an ETP that is a death benefit within the meaning

of section 27AAA;

'relevant deceased person' means:

(a) for a death benefit covered by Item 1 in Table 1 in section 27AAA-the

taxpayer referred to in the applicable paragraph of the definition of

'eligible termination payment' in subsection 27A(1); or

(b) for a death benefit covered by Item 2 or 3 in Table 1 in section

27AAA-the deceased person referred to in the applicable paragraph of the

definition of 'eligible termination payment' in subsection 27A(1); or

(c) for a death benefit covered by Item 4 in Table 1 in section 27AAA-the

deceased person referred to in paragraph 27AAA(6)(a) or (b).".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 22

Revision of final determinations

22. Section 140S of the Principal Act is amended by omitting subsection (2).

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 23

Benefits which are counted towards a person's RBLs

23. Section 140ZC of the Principal Act is amended by omitting paragraphs

(2)(f) and (i).

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 24

Assessment of benefits against lump sum RBL

24. Section 140ZF of the Principal Act is amended by adding at the end the

following subsection:

(Death benefit ETPs never to be assessed against lump sum RBL)

"(5) In spite of subsections (1), (2) and (3), the current benefit is not to

be assessed against the recipient's lump sum RBL for the year of income if the

current benefit is an ETP that is a death benefit within the meaning of

section 27AAA.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 25

Application

25. The amendments made by this Division apply to payments made on or after

1 July 1994.

Division 6 - Amendments relating to the tax treatment of the

excessive component of ETPs

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 26

Notional income where assessable income includes consideration

receivable on disposal, loss or destruction of depreciated property

26. Section 59AB of the Principal Act is amended by omitting from subsection

(4) "any Act by which a rate of tax upon the taxable income of a taxpayer is

fixed by reference to a notional income" and substituting "any Act that fixes

a rate or rates of income tax by reference to a notional income".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 27

Notional income of a taxpayer deriving a premium

27. Section 86 of the Principal Act is amended by omitting from subsection

(1) "any Act whereby a rate of tax upon the taxable income of a taxpayer is

fixed by reference to a notional income" and substituting "any Act that fixes

a rate or rates of income tax by reference to a notional income".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 28

Capital gains, abnormal income and ETP excessive component to be disregarded

28. Section 149A of the Principal Act is amended by inserting in paragraph

(1)(a) and subparagraph (1)(b)(i) "and did not include any amount under

subsection 27B(1A) or (3)" after "Part IIIA".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 29

Application

29. The amendments made by this Division apply to assessments for the

1994-95 year of income and for all later years of income.

Division 7 - Amendments to extend the meaning of annuities

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 30

Interpretation

30. Section 110 of the Principal Act is amended by inserting in subsection

(1) the following definition:

" 'annuity' has the same meaning as in section 3 of the Occupational

Superannuation Standards Act 1987;".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 31

Interpretation

31. Section 116E of the Principal Act is amended by inserting in subsection

(1) the following definition:

" 'annuity' has the same meaning as in section 3 of the Occupational

Superannuation Standards Act 1987;".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 32

Interpretation

32. Section 159GP of the Principal Act is amended by inserting in subsection

(1) the following definition:

" 'annuity' has the same meaning as in section 3 of the Occupational

Superannuation Standards Act 1987;".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 33

Application

33. The amendments made by this Division apply to annuities purchased on or

after 22 December 1992.

PART 3 - AMENDMENT OF THE INCOME TAX RATES ACT 1986

Division 1 - Principal Act

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 35

Principal Act

35. In this Part, "Principal Act" means the Income Tax Rates Act 1986.*2*

*2* No. 107, 1986, as amended. For previous amendments, see Nos. 60 and 138,

1987; Nos. 11, 78 and 118, 1988; Nos. 70, 98 and 106, 1989; No. 87, 1990; Nos.

48, 100 and 216, 1991; and No. 98, 1992.

Division 2 - Amendments relating to the tax treatment of the excessive

component of ETPs

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 36

Interpretation

36. Section 3 of the Principal Act is amended:

(a) by omitting the definition of "special income component" in subsection

(1) and substituting the following definition:

" 'special income component', in relation to a taxable income for which

there is a capital gains amount or an abnormal income amount, means:

(a) so much of the taxable income as does not exceed the capital gains

amount, the abnormal income amount or the sum of those amounts, as the case

requires; or

(b) if the sum ('the component sum') of:

(i) the amount worked out under paragraph (a); and

(ii) the EC part of the taxable income;

is more than the taxable income-the amount worked out under paragraph (a),

reduced by the amount by which the component sum exceeds the taxable

income;";

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

" 'EC part of the taxable income' means so much of the taxable income as

does not exceed the excessive component included in assessable income under

subsection 27B(3);

'ordinary taxable income' means the taxable income, reduced by the EC part

of the taxable income;".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 37

Schedule 7

37. Schedule 7 to the Principal Act is amended:

(a) by omitting from clause 1 of Part I "clauses 2 and 3, the rate of tax in

respect of each part of the taxable income of a resident taxpayer specified in

column 1 of the following table is the rate set out in column 2 of that table

opposite to the reference to that part of the taxable income" and

substituting:

"clauses 2 and 3, the rates of tax on the taxable income of a resident

taxpayer are as follows:

(a) for the EC part of the taxable income-47%;

(b) for each part of the ordinary taxable income specified in column 1 of

the following table-the corresponding rate set out in column 2 of the

table:";

(b) by inserting in the table in clause 1 of Part I "ordinary" before

"taxable income" (wherever occurring);

(c) by omitting paragraph (d) of the definition of component B in clause 2

of Part I and substituting the following paragraph:

"(d) the amount of tax that would be payable by the taxpayer under clause 1

on a taxable income equal to the reduced taxable income;";

(d) by adding at the end of clauses 2 and 3 of Part I:

"In applying the formula, component B is to be worked out on the assumption

that the whole of the taxable income is ordinary taxable income.";

(e) by omitting from clause 1 of Part II "clauses 2 and 3, the rate of tax

in respect of each part of the taxable income of a non-resident taxpayer

specified in column 1 of the following table is the rate set out in column 2

of that table opposite to the reference to that part of the taxable income"

and substituting:

"clauses 2 and 3, the rates of tax on the taxable income of a non-resident

taxpayer are as follows:

(a) for the EC part of the taxable income-47%;

(b) for each part of the ordinary taxable income specified in column 1 of

the following table-the corresponding rate set out in column 2 of the

table:";

(f) by inserting in the table in clause 1 of Part II "ordinary" before

"taxable income" (wherever occurring);

(g) by omitting paragraph (d) of the definition of component B in clause 2

of Part II and substituting the following paragraph:

"(d) the amount of tax that would be payable by the taxpayer under clause 1

on a taxable income equal to the reduced taxable income;";

(h) by adding at the end of clauses 2 and 3 of Part II:

"In applying the formula, component B is to be worked out on the assumption

that the whole of the taxable income is ordinary taxable income.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 38

Schedule 8

38. Schedule 8 to the Principal Act is amended by inserting in subparagraph

(2)(b)(ii) of Division 2 of Part I "ordinary" before "taxable" (wherever

occurring).

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 39

Schedule 9

39. Schedule 9 to the Principal Act is amended:

(a) by omitting clause 1 of Part I and substituting the following clause:

"1. Subject to clause 2, the rates of tax on the taxable income of a

resident taxpayer deriving a notional income as specified by section 59AB or

86 of the Assessment Act are as follows:

(a) for the EC part of the taxable income-47%;

(b) for every $1 of the ordinary taxable income-the amount worked out using

the formula:

Tax at ordinary rates on non-EC notional income

Number of dollars in the non-EC notional income

where:

'Tax at ordinary rates on non-EC notional income' means the tax that would

be payable under clause 1 of Part I of Schedule 7 on an ordinary taxable

income equal to the non-EC notional income;

'Number of dollars in the non-EC notional income' means the number of whole

dollars in the non-EC notional income;

In this clause, 'non-EC notional income' means the amount that would have been

the notional income as specified by section 59AB or 86 of the Assessment Act

if that notional income had been calculated by reference to ordinary taxable

income instead of by reference to taxable income.";

(b) by adding at the end of clause 2 of Part I:

"In applying the formula, component B is to be worked out on the assumption

that the whole of the taxable income is ordinary taxable income.";

(c) by omitting clause 1 of Part II and substituting the following clause:

"1. Subject to clause 2, the rates of tax on the taxable income of a

non-resident taxpayer deriving a notional income as specified by section 59AB

or 86 of the Assessment Act are as follows:

(a) for the EC part of the taxable income-47%;

(b) for every $1 of the ordinary taxable income-the amount worked out using

the formula:

Tax at ordinary rates on non-EC notional income

Number of dollars in the non-EC notional income

where:

'Tax at ordinary rates on non-EC notional income' means the tax that would

be payable under clause 1 of Part II of Schedule 7 on an ordinary taxable

income equal to the non-EC notional income;

'Number of dollars in the non-EC notional income' means the number of whole

dollars in the non-EC notional income;

In this clause, 'non-EC notional income' means the amount that would have been

the notional income as specified by section 59AB or 86 of the Assessment Act

if that notional income had been calculated by reference to ordinary taxable

income instead of by reference to taxable income.";

(d) by adding at the end of clause 2 of Part II:

"In applying the formula, component B is to be worked out on the assumption

that the whole of the taxable income is ordinary taxable income.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 40

Schedule 10

40. Schedule 10 to the Principal Act is amended by inserting in paragraph

2(b) of Part I "ordinary" before "taxable" (wherever occurring).

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 41

Schedule 11

41. Schedule 11 to the Principal Act is amended by adding at the end of

clause 3 of Parts I and II:

"In applying the formula, component B is to be worked out on the assumption

that the whole of the taxable income is ordinary taxable income.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 42

Schedule 12

42. Schedule 12 to the Principal Act is amended by adding at the end of

clause 3 of Parts I and II:

"In applying the formula, component B is to be worked out on the assumption

that the whole of the taxable income is ordinary taxable income.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 43

Application

43. The amendments made by this Division apply to assessments for the

1994-95 year of income and for all later years of income.

PART 4 - AMENDMENT OF THE OCCUPATIONAL SUPERANNUATION STANDARDS ACT 1987

Division 1 - Principal Act

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 44

Principal Act

44. In this Part, "Principal Act" means the Occupational Superannuation

Standards Act 1987.*3*

*3* No. 97, 1987, as amended. For previous amendments, see No. 138, 1987; Nos.

97 and 105, 1989; Nos. 61 and 135, 1990; Nos. 55 and 216, 1991; and Nos. 92,

98 and 208, 1992.

Division 2 - Amendments relating to transferred retiree members of

superannuation funds

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 45

Interpretation

45. Section 3 of the Principal Act is amended by omitting paragraph (b) of

the definition of "transferred retiree member" in subsection (1) and

substituting the following paragraphs:

"(b) at or after the member's retirement, an amount was paid to the trustees

of the fund in respect of the member; and

"(c) assuming that the fund was a complying superannuation fund (within the

meaning of Part IX of the Tax Act) in relation to the year of income of the

fund in which the payment was made, the payment would have represented the

roll-over of an eligible termination payment (within the meaning of section

27A of the Tax Act);".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 46

Application

46. The amendments made by this Division apply in relation to amounts paid

to the trustees of a fund after the commencement of this section.

Division 3 - Amendments relating to the notification of breaches of

superannuation fund conditions

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 47

Notices as to satisfaction of the superannuation fund conditions

47. Section 12 of the Principal Act is amended:

(a) by inserting in paragraph (3A)(a) "satisfied the following requirements"

after "trustee of the fund" (first occurring);

(b) by omitting subparagraph (3A)(a)(i) and substituting the following

subparagraphs:

"(i) in any case-the trustee notified the breach to the Commissioner

as soon as practicable after becoming aware of the breach;

(ia) if:

(A) the trustee's response to the breach is covered by regulations

made for the purposes of this subparagraph; and

(B) the trustee is given a written notice under the regulations

requesting the trustee to take all reasonable steps to notify the breach to

all prescribed employer sponsors in relation to the fund;

the trustee complied with the request;

(ib) if:

(A) the trustee's response to the breach is not covered by

regulations made for the purposes of subparagraph (ia); and

(B) the trustee is not given a written waiver under the

regulations from the requirements of this subparagraph;

the trustee took all reasonable steps to notify the breach to all prescribed

employer sponsors in relation to the fund within the period specified in the

regulations;";

(c) by inserting in subparagraph (3A)(a)(ii) "in any case-the trustee"

before "caused the breach".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 48

Application

48. The amendments made by section 47 apply in relation to a breach of a

superannuation fund condition as follows:

(a) if the breach continued over a period-the amendments apply to so much of

the breach as occurred after the commencement of this section;

(b) in any other case-the amendments apply if the breach occurred after the

commencement of this section.

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 49

Transitional

49. Subsection 12(3A) of the Principal Act applies, and is taken always to

have applied, to a breach of a superannuation fund condition as follows:

(a) if the breach continued over a period-that subsection applies to so much

of the breach as occurred after 30 June 1992;

(b) in any other case-that subsection applies if the breach occurred after

30 June 1992.

Division 4 - Amendments relating to prospectuses

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 50

Interpretation

50. Section 3 of the Principal Act is amended by inserting after paragraph

(d) of the definition of "reviewable decision" in subsection (1) the

following paragraphs:

"(da) a decision of the Commissioner refusing to give an exemption under

section 12A in relation to a fund;

(db) a decision of the Commissioner to vary or revoke an exemption

under section 12A in relation to a fund;

(dc) a decision of the Commissioner refusing an application for the

variation or revocation of an exemption under section 12A in relation to a

fund;

(dd) a decision of the Commissioner to make a determination under section

12A in relation to a fund;

(de) a decision of the Commissioner to vary or revoke a determination under

section 12A in relation to a fund;

(df) a decision of the Commissioner refusing an application for the

variation or revocation of a determination under section 12A in relation to a

fund;".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 51

51. After section 12 of the Principal Act the following section is inserted:

Commissioner may modify application of standards relating to prospectuses

"12A.(1) This section applies to a standard prescribed under subsection

7(1), where the standard relates to prospectuses.

"(2) The Commissioner may, by written notice given to the trustee of a fund,

exempt the fund from compliance with the standard.

"(3) The exemption may be made either generally or as otherwise provided in

the exemption.

"(4) The exemption may be unconditional or subject to such conditions (if

any) as are specified in the exemption.

"(5) If the Commissioner makes a decision refusing an application for an

exemption, the Commissioner must give the applicant a written notice setting

out the decision and giving the reasons for the decision.

"(6) The Commissioner may, by written notice given to the trustee of a fund,

vary or revoke an exemption applicable to the fund.

"(7) If the Commissioner makes a decision to vary or revoke an exemption,

the Commissioner must give the trustee of the fund concerned a written notice

giving the reasons for the decision.

"(8) If the Commissioner makes a decision refusing an application for the

variation or revocation of an exemption, the Commissioner must give the

applicant a written notice giving the reasons for the decision.

"(9) The Commissioner may, by written notice given to the trustee of a fund,

determine that the standard is to have effect, in its application in relation

to the fund and in relation to a specified prospectus, as if it were modified

in the manner specified in the determination.

"(10) The determination may have effect either generally or as otherwise

specified in the determination.

"(11) If a determination is made, the standard has effect accordingly.

"(12) A notice of a determination must give the reasons for making the

determination.

"(13) The Commissioner may, by written notice given to the trustee of a

fund, vary or revoke a determination applicable to the fund.

"(14) If the Commissioner makes a decision to vary or revoke a

determination, the Commissioner must give the trustee of the fund concerned a

written notice giving the reasons for the decision.

"(15) If the Commissioner makes a decision refusing an application for the

variation or revocation of a determination, the Commissioner must give the

applicant a written notice giving the reasons for the decision.

"(16) An exemption given in response to an application made within 90 days

after the commencement of this section may be expressed to have taken effect

on a day that is:

(a) on or after 24 February 1993; and

(b) earlier than the day on which the notice of the exemption was given.

"(17) In this section:

'modification' includes addition, omission and substitution.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 52

Review of certain decisions

52. Section 16 of the Principal Act is amended by inserting in subsection

(1) "(da), (db), (dc), (dd), (de), (df)," after "(d),".

Division 5 - Amendments relating to disclosure of information about

superannuation funds

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 53

Secrecy

53. Section 18 of the Principal Act is amended by omitting subsection (2A)

and substituting the following subsection:

"(2A) Subsection (2) does not prevent the Commissioner from disclosing any

or all of the following information about a fund:

(a) whether or not the trustee of the fund has lodged a return under section

12 in respect of a particular year of income;

(b) whether or not a decision has been made by the Commissioner to give a

notice, or a particular kind of notice, in relation to the fund under section

12 in respect of a particular year of income;

(c) whether or not a notice, or a particular kind of notice, has been given

by the Commissioner under section 10, 12 or 13 in relation to the fund in

respect of a particular year of income;

(d) whether or not the trustee of the fund has asked the Commissioner to

give the trustee a notice under subsection 13(1) in respect of a particular

year of income;

(e) whether or not the trustee of the fund has told the Commissioner that

the trustee is willing to accept a particular kind of contribution;

(f) an address at which business relating to the fund may be transacted;

(g) such other information as is reasonably necessary to enable members of

the public to contact a person who has a function in relation to the fund.".

Division 6 - Amendments relating to notification requirements for ETP

payers

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 54

Payers must provide certain information

54. Section 15G of the Principal Act is amended by omitting subsection (4)

and substituting the following subsection:

"(4) A payer does not have to lodge a notice under subsection (1) for a

payment that is less than or equal to the amount prescribed by the regulations

for the purposes of this subsection. However, this exemption from lodgment

does not apply to:

(a) a payment made out of an approved deposit fund; or

(b) a payment made by a life assurance company (otherwise than in the

capacity of an employer) from a source other than a superannuation fund; or

(c) a payment made by a registered organisation (otherwise than in the

capacity of an employer).".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 55

Application

55. The amendment made by this Division applies to payments made on or after

24 December 1991.

PART 5 - AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT

1992

Division 1 - Principal Act

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 56

Principal Act

56. In this Part, "Principal Act" means the Superannuation Guarantee

(Administration) Act 1992.*4*

*4* No. 111, 1992, as amended. For previous amendments, see No. 208, 1992.

Division 2 - Amendments relating to defined benefit superannuation

schemes

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 57

Interpretation: general

57. Section 6 of the Principal Act is amended by omitting from subsection

(1) the definition of "defined benefit superannuation scheme".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 58

58. After section 6 of the Principal Act the following sections are

inserted:

Interpretation: defined benefit superannuation scheme

"6A.(1) Subject to subsection (2), a defined benefit superannuation scheme

is a scheme under which:

(a) one or more members of the scheme are entitled, on retirement, to be

paid a benefit defined, wholly or in part, by reference to either or both of

the following:

(i) the amount of the member's annual salary:

(A) at the date of the member's retirement; or

(B) at a date before retirement; or

(C) averaged over a period of employment before retirement;

(ii) a specified amount; and

(b) if the scheme is not a public sector scheme-some or all of the

contributions under the scheme (out of which, together with earnings on those

contributions, the benefits are to be paid) are not paid into a fund, or

accumulated in a fund, in respect of any individual member but are paid into

and accumulated in a fund in the form of an aggregate amount.

"(2) A scheme embodied in the governing rules of a superannuation fund

(other than a scheme of the kind referred to in subsection (1)) is a defined

benefit superannuation scheme if a conversion notice has effect in relation to

the fund.

"(3) If the conversion notice is expressed to take effect on a day before

the day on which the notice is given, the scheme in question is taken to have

been a defined benefit superannuation scheme from the day on which the notice

is expressed to take effect.

"(4) Subsection (3) has effect regardless of the making of any assessment,

or the payment of any superannuation guarantee charge, in respect of a

contribution period that ended after the conversion notice took effect.

Interpretation: conversion notice

"6B.(1) A conversion notice is a written notice by the trustee of a

superannuation fund given to the Commissioner of Insurance and Superannuation

stating that the fund is to be treated as a defined benefit superannuation

scheme for the purposes of this Act.

"(2) Subject to subsection (4), a conversion notice takes effect in relation

to the fund on the day specified in the notice. Subject to subsection (4), the

trustee may, by written notice ('revocation notice') given to the Commissioner

of Insurance and Superannuation, revoke the conversion notice.

"(3) A conversion notice may be expressed to take effect on a day (whether

before or after the commencement of section 1 of the Taxation Laws Amendment

(Superannuation) Act 1993) that is not earlier than:

(a) the first day of the year in which the notice is given; or

(b) if the notice is given before 15 August in that year-the first day of

the preceding year.

"(4) A conversion notice or a revocation notice will not be effective

unless, before it is given, the trustee gives all employers contributing to

the fund for the benefit of employees written notice of:

(a) the trustee's intention to give the notice; and

(b) the proposed date of effect of the notice.

"(5) If an employer begins contributing to a superannuation fund for the

benefit of employees at a time when a conversion notice has effect in relation

to the fund, the trustee must give the employer written notice of:

(a) the giving of the conversion notice; and

(b) the date of effect of the notice;

within 30 days of the receipt by the trustee of the employer's first

contribution.

"(6) A notice under this section may be given by post.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 59

Interpretation: benefit certificate

59. Section 10 of the Principal Act is amended by inserting after paragraph

(3)(c) the following word and paragraph:

"or (d) in the case of a certificate that relates to a scheme that is a

defined benefit superannuation scheme because of the operation of subsection

6A(2)-the conversion notice under section 6B is revoked;".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 60

Reduction of charge percentage where contribution made to fund other

than defined benefit superannuation scheme

60. Section 23 of the Principal Act is amended by inserting after subsection

(8) the following subsection:

(Contribution made when conversion notice has effect not to be taken into

account under this section)

"(8A) A contribution to a superannuation fund made by an employer for the

benefit of an employee at a time when a conversion notice has effect in

relation to the fund is not at any time to be taken into account under this

section.".

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 61

Application

61. The amendments made by this Division apply for the purposes of

assessments in respect of the 1992-93 financial year and of each later

financial year.

PART 6 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT

1992

Division 1 - Principal Act

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 62

Principal Act

62. In this Part, "Principal Act" means the Taxation Laws Amendment

(Superannuation) Act 1992.*5*

*5* No. 208, 1992.

Division 2 - Amendments relating to the meaning of annuities

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 63

Repeal of section 35

63. Section 35 of the Principal Act is repealed.

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 64

Application

64. The amendment made by this Division applies to annuities purchased on or

after 22 December 1992.

Division 3 - Amendments relating to the components of an ETP

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993

- SECT 65

Components of an ETP

65. Section 51 of the Principal Act is amended by omitting from paragraph

(b) "ETP" (wherever occurring) and substituting "ETP-C".

Notes to theTaxation Laws Amendment (Superannuation) Act 1993

Note 1

The Taxation Laws Amendment (Superannuation) Act 1993 as shown in this compilation

comprises Act No. 7, 1993 amended as indicated in the Tables below.

Table of Acts

Act

Number

and year

Date

of Assent

Date of commencement

Application, saving or transitional provisions

Taxation Laws Amendment (Superannuation) Act 1993

7, 1993

27 May 1993

See s. 2

Tax Laws Amendment (2010 Measures No. 2) Act 2010

75, 2010

28 June 2010

Schedule 6 (item 107): 29 June 2010

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

Div. 8 of Part 2..........................

rep. No. 75, 2010

S. 34.........................................

rep. No. 75, 2010

Actions
Download as PDF Download as Word Document


Cases Citing This Decision

0

Cases Cited

0

Statutory Material Cited

0