Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 (Cth)
This is a compilation of the
The notes at the end of this compilation (the
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register ( The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
For more information about any editorial changes made in this compilation, see the endnotes.
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
This Act is the
Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 .
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 29 November 2016 |
Schedules 1, 2 and 3 | The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. | 1 January 2017 |
Schedule 4 | 2 July 2017. | 2 July 2017 |
Schedules 5 to 9 | The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. | 1 January 2017 |
Schedule 10, Part 1 | 1 July 2018. | 1 July 2018 |
Schedule 10, Parts 2 and 3 | The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. | 1 January 2017 |
Schedule 10, Part 4 | 1 July 2018. | 1 July 2018 |
Schedule 10, Part 5 | The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. | 1 January 2017 |
Schedule 11 | The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. | 1 January 2017 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Insert:
(gab) decisions of the Commissioner of Taxation under Subdivision 136‑A in Schedule 1 to the
Taxation Administration Act 1953 ;
Insert:
You cannot deduct under this Act an amount of *excess transfer balance tax that you pay.
Add:
Note 7: This section does not apply in relation to the capital gain mentioned in paragraph 294‑120(5)(b) of the
Income Tax (Transitional Provisions) Act 1997 .
Insert:
Guide to Division 294
294‑A Object of this Division
294‑B Transfer balance account
294‑C Transfer balance debits
294‑D Modifications for certain defined benefit income streams
294‑E Modifications for death benefits dependants who are children
294‑F Excess transfer balance tax
There is a cap on the total amount you can transfer into the retirement phase of superannuation (where earnings are exempt from taxation).
Credits are added to a transfer balance account when you transfer amounts.
If the balance in your account exceeds the cap, you will be required to remove the excess from the retirement phase, and you will be liable to pay excess transfer balance tax.
Note: Division 136 in Schedule 1 to the
Taxation Administration Act 1953 contains rules about excess transfer balance determinations and commutation authorities.
Operative provisions 294‑5 Object of this Division
The object of this Division is to limit the total amount of an individual’s *superannuation income streams that receive an earnings tax exemption.
This Subdivision creates a transfer balance account for you, and credits it, if you have a superannuation income stream in the retirement phase.
It also provides for a transfer balance cap and identifies when you have excess transfer balance.
Operative provisions 294‑15 When you have a transfer balance account
294‑20 Meaning of retirement phase recipient
294‑25 Transfer balance credits
294‑30 Excess transfer balance
294‑35 Your transfer balance cap
294‑40 Proportionally indexed transfer balance cap
294‑45 Transfer balance account ends
294‑50 Assume pension rules and commutation authorities complied with
(1) You have a
transfer balance account if you are, or have at any time been, the *retirement phase recipient of a *superannuation income stream.(2) You start to have the *transfer balance account on the later of:
(a) 1 July 2017; and
(b) the day you first start to be a *retirement phase recipient of a *superannuation income stream.
(1) You are the
retirement phase recipient of a *superannuation income stream at a time if:
(a) the superannuation income stream is in the *retirement phase at that time; and
(b) a *superannuation income stream benefit from the superannuation income stream is payable to you at that time.
(2) You are also the
retirement phase recipient of a *superannuation income stream at a time if:
(a) the superannuation income stream is in the *retirement phase at that time; and
(b) the superannuation income stream is a *deferred superannuation income stream; and
(c) a *superannuation income stream benefit from the superannuation income stream will be payable to you after that time.
(1) The following table sets out when a credit arises in your *transfer balance account and the amount of the credit. The credit is called a
transfer balance credit .
1 | just before 1 July 2017, you are the *retirement phase recipient of a *superannuation income stream | the *value, just before 1 July 2017, of the *superannuation interest that supports the superannuation income stream | on the later of: (a) 1 July 2017; and
|
2 | on a day (the | the *value on the starting day of the *superannuation interest that supports the superannuation income stream |
|
3 | you have *excess transfer balance at the end of a day | your *excess transfer balance earnings for that day | at the start of the next day |
Note 1: The amount of the transfer balance credit is modified for certain capped defined benefit income streams: see Subdivision 294‑D.
Note 2: For the meaning of
excess transfer balance earnings , see section 294‑235.Note 3: If a payment split applies to payments from the superannuation income stream, a debit arises under section 294‑90.
No crediting of earnings if determination issued
(2) Despite item 3 of the table in subsection (1), no credit arises in your *transfer balance account under that item because of *excess transfer balance at the end of a day if the day is in the period:
(a) starting on the day the Commissioner makes an *excess transfer balance determination in respect of you; and
(b) ending on:
(i) unless subparagraph (ii) applies—the first day on which the sum of all *transfer balance debits arising in your *transfer balance account since the determination was issued equals or exceeds the *crystallised reduction amount; or
(ii) if a *transfer balance credit arises in your transfer balance account before the day mentioned in subparagraph (i)—the day on which that credit arises.
Note: For provisions about excess transfer balance determinations, see Division 136 in Schedule 1 to the
Taxation Administration Act 1953.
(1) You have
excess transfer balance at a particular time if, at that time, the *transfer balance in your *transfer balance account exceeds your *transfer balance cap at that time. The amount of theexcess transfer balance is the amount of the excess.Note: There is a modification for certain capped defined benefit income streams: see Subdivision 294‑D.
(2) The
transfer balance in your *transfer balance account at a time equals:
(a) the sum of the *transfer balance credits in the account at that time; less
(b) the sum of the *transfer balance debits (if any) in the account at that time.
Note 1: For
transfer balance debits , see Subdivision 294‑C.Note 2: There is no consequence for having a negative transfer balance.
(1) Your
transfer balance cap for the *financial year in which you first start to have a *transfer balance account is equal to the *general transfer balance cap for that financial year.Note: The amount of the transfer balance cap is modified for child recipients: see Subdivision 294‑E.
(2) Your
transfer balance cap for a later *financial year is equal to your transfer balance cap for the previous year, subject to section 294‑40 (which is about proportional indexation).(3) The
general transfer balance cap is:
(a) for the 2017‑2018 *financial year—$1,600,000; or
(b) for the 2018‑2019 financial year or a later financial year—the amount worked out by indexing annually the amount mentioned in paragraph (a).
Note: Subdivision 960‑M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap: see section 960‑285.
(1) This section applies to increase your
transfer balance cap for a *financial year (other than the financial year in which you first start to have a *transfer balance account) if:
(a) the *general transfer balance cap is increased as a result of indexation for the financial year; and
(b) at no time before the start of that financial year has the *transfer balance in your transfer balance account at the end of a day exceeded your transfer balance cap.
(2) Your
transfer balance cap is increased for the *financial year by the amount worked out using the following formula:where:
indexation increase means the amount by which the *general transfer balance cap for the *financial year increased as a result of indexation.
unused cap percentage is worked out by:
(a) identifying the highest *transfer balance in your *transfer balance account at the end of any day up to the end of the previous *financial year; and
(b) identifying the day on which the transfer balance account had that transfer balance at the end of the day, or, if your transfer balance account had that transfer balance at the end of more than one day, the earliest of those days; and
(c) expressing the transfer balance identified in paragraph (a) as a percentage (rounded down to the nearest whole number) of your *transfer balance cap on the day identified in paragraph (b); and
(d) subtracting the result of paragraph (c) from 100%.
(3) However, if the highest *transfer balance mentioned in paragraph (a) of the definition of
unused cap percentage in subsection (2) is less than nil, that unused cap percentage is taken to be 100%.
The *transfer balance account ceases when the *retirement phase recipient dies.
(1) For the purposes of working out a matter mentioned in subsection (2) at a time:
(a) assume that an income stream will properly comply with any rules or standards under which it is, or is purported to be, provided; and
(b) disregard subsection 307‑80(4).
(2) The matters are:
(a) whether you are the *retirement phase recipient of a *superannuation income stream; and
(b) whether a *transfer balance credit arises in your *transfer balance account.
A debit arises in your transfer balance account when superannuation income streams that were previously credited (because they receive the earnings tax exemption) are reduced (other than by draw‑downs or investment losses) or lose the earnings tax exemption.
A debit also arises in your transfer balance account when you make a contribution relating to a structured settlement or personal injury, or where certain events occur that result in you having reduced superannuation.
Operative provisions 294‑80 Transfer balance debits
294‑85 Certain events that result in reduced superannuation
294‑90 Payment splits
294‑95 Payment splits—no double debiting
(1) The following table sets out when a debit arises in your *transfer balance account and the amount of the debit. The debit is called a
transfer balance debit .
1 | you receive a *superannuation lump sum because a *superannuation income stream of which you are a *retirement phase recipient is commuted, in full or in part | the amount of the superannuation lump sum | at the time you receive the superannuation lump sum |
2 | a *structured settlement contribution is made in respect of you | the amount of the contribution | at the later of: (a) the time the contribution is made; and
|
3 | a *transfer balance debit arises under section 294‑85 because of an event that results in reduced superannuation | the amount of the debit specified in section 294‑85 | at the time provided by section 294‑85 |
4 | a *transfer balance debit arises under section 294‑90 because of a payment split | the amount of the debit specified in section 294‑90 | at the time provided by section 294‑90 |
5 | a *superannuation income stream of which you are a *retirement phase recipient stops being in the *retirement phase under subsection 307‑80(4) | the *value of the *superannuation interest that supports the superannuation income stream at the end of the period within which the commutation authority mentioned in that subsection was required to be complied with | at the end of the period within which the commutation authority mentioned in that subsection was required to be complied with |
6 | an income stream of which you were a *retirement phase recipient stops being a *superannuation income stream that is in the *retirement phase at a time (the | the *value of the *superannuation interest that supports the income stream at the end of the income year of the *superannuation income stream provider in which the stop time occurs | at the end of the income year of the superannuation income stream provider in which the stop time occurs |
7 | the Commissioner gives you a notice under section 136‑70 in Schedule 1 to the | the amount of the *excess transfer balance stated in the notice | at the time the Commissioner issues the notice |
Structured settlement contributions
(2) Each of the following is a
structured settlement contribution in respect of you:
(a) a contribution to a *complying superannuation plan in respect of you that is covered under section 292‑95 (about structured settlements or orders for personal injuries);
(b) a contribution to a complying superannuation plan in respect of you that would be covered under section 292‑95 if:
(i) the section applied to contributions made before 10 May 2006; and
(ii) paragraphs 292‑95(1)(b) and (d) were disregarded.
(1) A *transfer balance debit arises in your *transfer balance account if:
(a) subsection (2) or (5) provides that the debit arises; and
(b) you notify the Commissioner in the *approved form that the debit has arisen.
Fraud or dishonesty
(2) A debit arises if:
(a) a loss is suffered by a *superannuation income stream provider; and
(b) as a result, the *value of the *superannuation interest that supports a *superannuation income stream of which you are the *retirement phase recipient is reduced; and
(c) the loss is a result of fraud or dishonesty; and
(d) an individual has been convicted of an offence involving that fraud or dishonesty.
(3) The amount of the debit equals the amount by which the *value of the *superannuation interest is reduced as a result of the loss
. (4) The debit arises at the time of the loss.
Payments under section 139ZQ of the Bankruptcy Act 1966
(5) A debit arises if:
(a) an amount is paid in compliance with a notice given under section 139ZQ of the
Bankruptcy Act 1966 ; and(b) as a result, the *value of a *superannuation interest that supports a *superannuation income stream of which you are the *retirement phase recipient is reduced.
(6) The amount of the debit is the amount paid to the trustee in bankruptcy.
(7) The debit arises at the time of the payment.
(1) A *transfer balance debit arises in your *transfer balance account if:
(a) subsection (2) provides that the debit arises; and
(b) the Commissioner is notified in the *approved form that the debit has arisen.
Payment splits
(2) A debit arises if:
(a) a *superannuation interest is subject to a *payment split but remains an interest of the *member spouse; and
(b) the superannuation interest supports a *superannuation income stream that is in the *retirement phase; and
(c) as a result of the payment split, a proportion of all *superannuation income stream benefits from the income stream is to be paid to a *non‑member spouse; and
(d) as a result, the member spouse and the non‑member spouse are both *retirement phase recipients of the superannuation income stream.
(3) The amount of the debit is:
(a) if you are the *member spouse—the proportion mentioned in paragraph (2)(c); and
(b) if you are the *non‑member spouse—the remaining proportion;
of the *value, on the day the debit arises, of the *superannuation interest that supports the *superannuation income stream affected by the *payment split.
(4) The debit arises at the later of:
(a) the operative time (within the meaning of Part VIIIB of the
Family Law Act 1975 ) for the *payment split; and(b) at the start of the day you first start to have a *transfer balance account.
If a *transfer balance debit, worked out by reference to a particular proportion, arises in your *transfer balance account because a *superannuation interest is subject to a *payment split, each of the following debits arising in your account at a later time in respect of the same interest is to be reduced by the same proportion:
(a) a debit that arises under item 1 of the table in subsection 294‑80(1) (about commutations), but only if the commuted income stream is a *capped defined benefit income stream;
(b) a debit that arises under item 3 of that table (about events that result in reduced superannuation);
(c) a debit that arises under item 5 or 6 of that table (about income streams that stop being in the retirement phase).
Certain defined benefit lifetime pensions that are subject to commutation restrictions cannot result in excess transfer balance (instead, Subdivision 303‑A applies to the superannuation income stream benefits).
Certain commutation‑restricted income streams started before 1 July 2017 are covered by the same modification.
Operative provisions 294‑125 When this Subdivision applies
294‑130 Meaning of capped defined benefit income stream
294‑135 Transfer balance credit—special rule for capped defined benefit income streams
294‑140 Excess transfer balance—special rule for capped defined benefit income streams
294‑145 Transfer balance debits—special rules for capped defined benefit income streams
This Subdivision applies to you if you are the *retirement phase recipient of a *capped defined benefit income stream.
(1) A *superannuation income stream is a
capped defined benefit income stream if it is:
(a) covered by an item of the following table; and
(b) if it is covered by any of items 2 to 7 of that table—it is in the *retirement phase just before 1 July 2017.
1 | Lifetime pension | it is a pension for the purposes of the |
2 | Lifetime annuity | it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(2) of the SIS Regulations |
3 | Life expectancy pension | it is a pension for the purposes of the SIS Act that is provided under rules that meet the standards of subregulation 1.06(7) of the SIS Regulations |
4 | Life expectancy annuity | it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(9) of the SIS Regulations |
5 | Market linked pension | it is a pension for the purposes of the SIS Act that is provided under rules that meet the standards of subregulation 1.06(8) of the SIS Regulations |
6 | Market linked annuity | it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(10) of the SIS Regulations |
7 | Market linked pension (RSA) | it is a pension for the purposes of the |
(2) A *superannuation income stream is also a
capped defined benefit income stream if the income stream is prescribed by the regulations for the purposes of this subsection.
(1) Section 294‑25 applies in relation to a *capped defined benefit income stream as if a reference in that section to the *value of a *superannuation interest were a reference to the *special value of the superannuation interest.
Meaning of special value—lifetime products
(2) The
special value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294‑130(1), is the amount worked out using the formula:where:
annual entitlement is worked out by:
(a) dividing the amount of the first *superannuation income stream benefit you are entitled to receive from the income stream just after that time by the number of whole days to which that benefit relates; and
(b) multiplying the result by 365.
Meaning of special value—life expectancy and market linked products
(3) The
special value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294‑130(1), is the amount worked out using the formula:where:
annual entitlement has the same meaning as in subsection (2) of this section.
remaining term means the number of years remaining at that time in the period throughout which *superannuation income stream benefits are payable under the income stream, rounded up to the next whole number.
Regulations
(4) The regulations may specify a method for determining the
special value of a *superannuation interest that supports a *superannuation income stream prescribed by regulations made for the purposes of subsection 294‑130(2).
(1) Despite section 294‑30, you have
excess transfer balance at a particular time if, at that time, the *transfer balance in your *transfer balance account:
(a) exceeds your *transfer balance cap at that time; and
(b) exceeds your capped defined benefit balance from subsection (3) of this section at that time.
(2) The amount of the
excess transfer balance is the lesser of the 2 excesses.Note: For modifications of the tax treatment of benefits paid from capped defined benefit income streams, see Subdivision 303‑A.
Your capped defined benefit balance
(3) You have an amount under this subsection (a
capped defined benefit balance ) at a time equal to:
(a) the sum of the *transfer balance credits in your *transfer balance account at that time in respect of *capped defined benefit income streams; less
(b) the sum of the *transfer balance debits (if any) in your transfer balance account at that time in respect of capped defined benefit income streams.
Debit for commutation
(1) Item 1 of the table in subsection 294‑80(1) applies in relation to a *capped defined benefit income stream as if the reference in column 2 of that item to the amount of the *superannuation lump sum were a reference to:
(a) for a commutation in full—the *debit value, just before the superannuation lump sum is paid, of the *superannuation interest that supports the capped defined benefit income stream; or
(b) for a commutation in part—the debit value mentioned in paragraph (a), multiplied by the fraction:
where:
SV just after commutation means the *special value, just after the *superannuation lump sum is paid, of the *superannuation interest that supports the *capped defined benefit income stream.
SV just before commutation means the *special value, just before the *superannuation lump sum is paid, of the *superannuation interest that supports the *capped defined benefit income stream.
Debit for events that result in reduced superannuation
(2) Item 3 of the table in subsection 294‑80(1) (about events that result in reduced superannuation) applies in relation to a *capped defined benefit income stream as if the amount of the debit provided for in section 294‑85 was the *debit value, just before the loss or payment reduces the *value of the *superannuation interest that supports the capped defined benefit income stream, multiplied by the amount worked out using the following formula:
where:
SV just after event means the *special value, worked out just after the loss or payment reduces the *value of the *superannuation interest that supports the *capped defined benefit income stream.
SV just before event means the *special value, worked out just before the loss or payment reduces the *value of the *superannuation interest that supports the *capped defined benefit income stream.
Debit for payment split
(3) Item 4 of the table in subsection 294‑80(1) (about a debit for a payment split) applies in relation to a *capped defined benefit income stream as if the reference in section 294‑90 to the *value of the *superannuation interest were a reference to the *debit value of the superannuation interest.
Debits for loss of earnings exemption
(4) Items 5 and 6 of the table in subsection 294‑80(1) apply in relation to an income stream that is, or was, a *capped defined benefit income stream as if the reference in the item to the *value of a *superannuation interest were a reference to the *debit value of the superannuation interest.
Meaning of debit value
(5) The
debit value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294‑130(1), is:
(a) the amount of the *transfer balance credit that arose in your *transfer balance account in respect of the income stream; less
(b) the amount of any *transfer balance debits (apart from debits arising under item 4 of the table in subsection 294‑80(1)) that have arisen in your transfer balance account in respect of the income stream before that time.
(6) The
debit value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294‑130(1) is the *special value of the interest at that time.
Regulations
(7) The regulations may specify a method for determining the
debit value of a *superannuation interest that supports a *superannuation income stream prescribed by regulations made for the purposes of subsection 294‑130(2).
If you are a death benefits dependant, and a child, you are not required to use your retirement transfer balance cap to receive a death benefits income stream.
However, there is a cap on the total amount of your death benefits income streams that receives the earnings tax exemption.
This cap is based on the deceased’s superannuation interests in the retirement phase, or, if the deceased did not have any superannuation interests in the retirement phase, on the transfer balance cap.
Operative provisions 294‑175 When this Subdivision applies
294‑180 Transfer balance account ends
294‑185 Transfer balance cap—special rule for child recipient
294‑190 Cap increment—child recipient just before 1 July 2017
294‑195 Cap increment—child recipient on or after 1 July 2017, deceased had no transfer balance account
294‑200 Cap increment—child recipient on or after 1 July 2017, deceased had transfer balance account
(1) This Subdivision applies to you if you are a *child recipient of a *superannuation income stream.
(2) You are a
child recipient of a *superannuation income stream if:
(a) because of the death of a person, you are a *retirement phase recipient of the superannuation income stream; and
(b) you are a *child, and a *death benefits dependant, of the deceased; and
(c) you are covered by paragraph 6.21(2A)(b) of the
Superannuation Industry (Supervision) Regulations 1994 or paragraph 4.24(3A)(b) of theRetirement Savings Accounts Regulations 1997 (which are about children who are under age 18, or under age 25 and financially dependent or who have a disability).
(1) Despite sections 294‑15 and 294‑45, your *transfer balance account ceases at a time if:
(a) just before that time, you were a *child recipient of one or more *superannuation income streams; and
(b) just after that time, you are no longer a child recipient of any superannuation income stream; and
(c) no *transfer balance credits arose in the transfer balance account in respect of a superannuation income stream of which you were a *retirement phase recipient, but not a child recipient.
(2) If you again start to have a *transfer balance account at a later time, this Division applies in relation to that later transfer balance account as if it were the only transfer balance account you have had.
(1) Despite section 294‑35, your
transfer balance cap on a day is the sum of the cap increments that have arisen under this Subdivision on and before that day.Note: Your transfer balance cap is not worked out on a financial year basis and it is not indexed.
(2) However, if there are one or more *superannuation income streams of which you are, on that day, a *retirement phase recipient but not a *child recipient, your
transfer balance cap on that day is the sum of:
(a) the sum of the cap increments that have arisen under this Subdivision on and before that day; and
(b) your transfer balance cap for the *financial year in which the day falls, worked out disregarding:
(i) any cap increments that arise under this Subdivision; and
(ii) any *transfer balance credits or *transfer balance debits that have arisen in your *transfer balance account in respect of superannuation income streams of which you are a child recipient.
Note: Paragraph (b) is the transfer balance cap you would have if you were not a child recipient of any income stream. Disregarding credits, debits and cap increments allows this cap to be indexed appropriately under section 294‑40 (which is about proportional indexation).
(1) A cap increment arises if, just before 1 July 2017, you are the *child recipient of a *superannuation income stream.
(2) The amount of the cap increment is the *general transfer balance cap.
(3) The cap increment arises on 1 July 2017.
(1) A cap increment arises if:
(a) on a day (the
starting day ) on or after 1 July 2017, you start to be the *child recipient of a *superannuation income stream; and(b) the deceased did not have a *transfer balance account just before death.
(2) The amount of the cap increment is:
(a) the *general transfer balance cap, unless paragraph (b) applies; or
(b) if you are
not the only person to receive a *superannuation death benefit because of the death of the person—the proportion of the general transfer balance cap that corresponds to your share of the deceased’s *superannuation interests.(3) The cap increment arises on the starting day.
(1) A cap increment arises if:
(a) on a day (the
starting day ) on or after 1 July 2017, you start to be the *child recipient of a *superannuation income stream; and(b) the deceased had a *transfer balance account just before death.
Income stream fully funded by deceased’s retirement phase interests
(2) If the *superannuation interest that supports the *superannuation income stream is wholly attributable to one or more superannuation interests of the deceased that were in the *retirement phase, the amount of the cap increment equals the amount of the *transfer balance credit that arises in your *transfer balance account in respect of the *superannuation income stream.
Income stream fully funded by deceased’s accumulation phase interests
(3) If the *superannuation interest that supports the *superannuation income stream is wholly attributable to one or more superannuation interests of the deceased that were
not in the *retirement phase, the amount of the cap increment is nil.Note: A superannuation income stream covered by this subsection will generally result in excess transfer balance. The exceptions are: where you have additional cap increments under section 294‑190 or 294‑195, or where you have a higher cap under subsection 294‑185(2) because you also receive a non‑death benefit income stream.
Income stream partly funded by deceased’s accumulation interests
(4) If the *superannuation interest that supports the *superannuation income stream is:
(a) in part (the
retirement phase part ) attributable to a superannuation interest of the deceased that was in the *retirement phase; and(b) in part attributable to a superannuation interest of the deceased that was
not in the retirement phase;the amount of the cap increment is so much of the *transfer balance credit that arises in your *transfer balance account in respect of the superannuation income stream as represents the retirement phase part.
Note: A superannuation income stream covered by this subsection will generally result in excess transfer balance. The exceptions are: where you have additional cap increments under section 294‑190 or 294‑195, or where you have a higher cap under subsection 294‑185(2) because you also receive a non‑death benefit income stream.
Reduced increment for excess transfer balance
(5) Despite subsections (2) and (4), the cap increment is reduced if there was *excess transfer balance in the deceased’s *transfer balance account just before death. The amount of the reduction is:
(a) the proportion of the excess transfer balance that corresponds to your share of the deceased’s *superannuation interests that were in the *retirement phase; less
(b) the amount of any *superannuation lump sum paid to you, because of the death of the person from a superannuation interest of the deceased that was in the retirement phase.
When cap increment arises
(6) The cap increment arises:
(a) on the starting day, unless paragraph (b) applies; or
(b) if you are a reversionary beneficiary—at the end of the period of 12 months beginning on the starting day.
Treatment of investment earnings after death
(7) For the purposes of working out under this section the extent to which a *superannuation interest is attributable to another superannuation interest, if:
(a) a superannuation interest of the deceased was in the *retirement phase; and
(b) on or after the death of the deceased, an amount of investment earnings is added to the superannuation interest;
the superannuation interest is taken to include that amount of investment earnings, except to the extent that the amount of investment earnings includes an amount paid under a policy of insurance on the life of the deceased or an amount arising from self‑insurance.
This Subdivision neutralises the earnings tax exemption on retirement phase income streams that result in excess transfer balance.
Operative provisions 294‑230 Excess transfer balance tax
294‑235 Your excess transfer balance earnings
294‑240 When tax is payable—original assessments
294‑245 When tax is payable—amended assessments
294‑250 General interest charge
(1) If there is an *excess transfer balance period for your *transfer balance account, you are liable to pay *excess transfer balance tax imposed by the
Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 for the period.
Note: The amount of the tax is set out in the
Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 .(2) An
excess transfer balance period for a *transfer balance account is a continuous period of one or more days during which, at the end of each day, there is *excess transfer balance in the account.(3) Your *excess transfer balance tax is worked out by reference to the sum of:
(a) your *excess transfer balance earnings for each day in the *excess transfer balance period; and
(b) for each day in the excess transfer balance period that is also a day in the period mentioned in subsection 294‑25(2) (the
determination period )—the amount worked out by multiplying the rate mentioned in subsection 294‑235(2) for the day by the sum of your excess transfer balance earnings for each previous day in the determination period.
(1) Your
excess transfer balance earnings for a day is worked out by multiplying the rate mentioned in subsection (2) for that day by the amount of your *excess transfer balance at the end of that day.(2) The rate is the lower of:
(a) the rate worked out under subsection 8AAD(1) of the
Taxation Administration Act 1953 for the day; and(b) a rate determined under subsection (3) for the day.
(3) The Minister may, by legislative instrument, determine a rate for a day.
Your *assessed excess transfer balance tax is due and payable at the end of 21 days after the Commissioner gives you notice of the assessment of the amount of the *excess transfer balance tax.
Note: For assessments of excess transfer balance tax, see Division 155 in Schedule 1 to the
Taxation Administration Act 1953 .
If the Commissioner amends your assessment, any extra *assessed excess transfer balance tax resulting from the amendment is due and payable 21 days after the day the Commissioner gives you notice of the amended assessment.
If an amount of *assessed excess transfer balance tax that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the *general interest charge on the unpaid amount for each day in the period that:
(a) begins on the day on which the amount was due to be paid; and
(b) ends on the last day on which, at the end of the day, any of the following remains unpaid:
(i) the assessed excess transfer balance tax;
(ii) general interest charge on any of the assessed excess transfer balance tax.
Note: The general interest charge is worked out under Part IIA of the
Taxation Administration Act 1953 .
Omit “member”.
Repeal the subsections.
Repeal the subparagraph, substitute:
(ii) Division 390;
(iii) subsection 136‑80(1); or
Repeal the paragraph, substitute:
(c) section 390‑5 in that Schedule; or
(d) section 390‑20 in that Schedule;
Repeal the paragraph, substitute:
(c) section 390‑5 in that Schedule; or
(d) section 390‑20 in that Schedule;
Insert:
15B | 294‑250 | payment of excess transfer balance tax |
Omit “
Income Tax Assessment Act 1997 ;”, substitute “Income Tax Assessment Act 1997 ; or”.
Insert:
(c) a determination under subsection 136‑10(1) in Schedule 1 to this Act (about excess transfer balance);
Repeal the heading, substitute:
Repeal the heading, substitute:
Add:
Guide to Division 136
136‑A Excess transfer balance determinations
136‑B Commutation authorities
If you have excess transfer balance in your transfer balance account, the Commissioner may require you and your superannuation income stream provider to reduce the total amount of your superannuation income streams that are in the retirement phase.
If your transfer balance account exceeds the transfer balance cap, the excess must be reduced by commuting in full or in part your superannuation income streams that are in the retirement phase.
If you have more than one superannuation income stream, you may choose which one to commute.
Operative provisions 136‑10 Excess transfer balance determination
136‑15 Review
136‑20 Electing to commute a different superannuation income stream
136‑25 Notifying Commissioner of transfer balance debits
(1) If you have *excess transfer balance in your *transfer balance account at the end of a day, the Commissioner may make a written determination stating the amount of that excess transfer balance.
Note: It is not necessary for the Commissioner to issue a determination under this subsection if the Commissioner becomes aware that you no longer have an excess transfer balance. You are still liable to pay excess transfer balance tax if no determination is issued: see Subdivision 294‑F of the
Income Tax Assessment Act 1997 .(2) A determination under this section is an
excess transfer balance determination .(3) The amount of *excess transfer balance stated in an *excess transfer balance determination is a
crystallised reduction amount .(4) The Commissioner may amend or revoke an *excess transfer balance determination at any time before a commutation authority relating to the determination is issued under section 136‑55.
(5) Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice.
Determination to include default commutation notice
(6) A determination made under subsection (1) must include a notice:
(a) stating that, if you do not make an election under section 136‑20 within the period specified in that section, the Commissioner will issue one or more commutation authorities; and
(b) specifying:
(i) the *superannuation income stream provider or providers to whom a commutation authority will be issued; and
(ii) the *superannuation income stream or streams that the providers will be obliged to commute in full or in part; and
(iii) if more than one commutation authority will be issued—the amount to be stated in each commutation authority, or the method the Commissioner will use to work out the amount to be stated in each commutation authority.
(7) A notice included with an *excess transfer balance determination in accordance with subsection (6) is a
default commutation notice .
(1) If you are dissatisfied with an *excess transfer balance determination made in relation to you, you may object against the determination in the manner set out in Part IVC.
(2) However, for the purposes of Part IVC, the *default commutation notice does not form part of the taxation decision.
(1) This section applies to you if:
(a) you receive an *excess transfer balance determination under section 136‑10; and
(b) you are the *retirement phase recipient of 2 or more *superannuation income streams.
(2) You may elect which of those *superannuation income streams is to be fully or partially commuted for the purpose of reducing the *transfer balance in your *transfer balance account by the *crystallised reduction amount.
Requirements for election
(3) You make an election under subsection (2) by:
(a) identifying the *superannuation income stream or streams to be commuted in full or in part and the *superannuation income stream provider for each such stream; and
(b) if you identify more than one superannuation income stream—stating the amount to be commuted from each such income stream.
(4) The election must:
(a) be in the *approved form; and
(b) be given to the Commissioner within:
(i) 60 days after the *excess transfer balance determination or amended excess transfer balance determination is issued; or
(ii) a further period allowed by the Commissioner.
Election is irrevocable
(5) An election under this section is irrevocable.
(1) This section applies to you if you have received an *excess transfer balance determination.
(2) You may notify the Commissioner in the *approved form of the amount of a *transfer balance debit that arises in your *transfer balance account if the debit arises in the period:
(a) beginning when the determination is made; and
(b) ending at the earlier of:
(i) the time you made an election under section 136‑20; and
(ii) the end of the period within which an election under section 136‑20 may be made.
The Commissioner must issue a commutation authority to a superannuation income stream provider, unless you have notified the Commissioner that you have already reduced your excess transfer balance by the crystallised reduction amount.
A superannuation income stream provider will usually be required to commute the superannuation income stream stated in the authority.
Obligations of Commissioner 136‑55 Issuing of commutation authorities
136‑60 Varying and revoking a commutation authority
136‑65 Issuing further commutation authorities
136‑70 Notifying of non‑commutable excess transfer balance
Obligations of superannuation income stream providers 136‑80 Obligations on superannuation income stream providers
136‑85 Notifying the Commissioner
136‑90 Notifying you
Commutation authority must be issued if there is a commutable amount
(1) The Commissioner must issue a commutation authority under this section to one or more *superannuation income stream providers if:
(a) an *excess transfer balance determination has been issued to you; and
(b) the excess transfer balance determination has not been revoked; and
(c) the period mentioned in subsection 136‑20(4) has ended; and
(d) an amount (the
commutable amount ) greater than nil remains after reducing the *crystallised reduction amount by the sum of any *transfer balance debits notified to the Commissioner under section 136‑25.
Issuing in response to a valid election
(2) If you have made a valid election under section 136‑20, the Commissioner must issue a commutation authority under this section to each *superannuation income stream provider identified in your election.
(3) If the total of the amounts stated in your election under section 136‑20 falls short of the commutable amount, the Commissioner must also issue a commutation authority to one or more *superannuation income stream providers specified in the *default commutation notice.
Issuing if you do not make a valid election
(4) If you have not made a valid election under section 136‑20, the Commissioner must issue a commutation authority to each *superannuation income stream provider specified in the *default commutation notice.
Requirements for commutation authority
(5) Each commutation authority must:
(a) specify the *superannuation income stream that the *superannuation income stream provider is to commute, in full or in part; and
(b) state the amount (the
reduction amount ) by which the superannuation income stream is to be reduced; and(c) be dated; and
(d) contain any other information that the Commissioner considers relevant.
(6) The total of all reduction amounts stated in commutation authorities issued under this section relating to an *excess transfer balance determination must not exceed the commutable amount.
The Commissioner may vary or revoke a commutation authority at any time before the Commissioner receives a notice under section 136‑85 relating to the commutation authority.
(1) The Commissioner may issue a commutation authority under this section to one or more *superannuation income stream providers under this section if:
(a) a commutation authority (the
original commutation authority ) was issued under section 136‑55; and(b) the *superannuation income stream provider to which the original commutation authority was issued:
(i) paid a *superannuation lump sum that fell short of the reduction amount stated in the original commutation authority; or
(ii) did not comply with the original commutation authority.
(2) A commutation authority issued under this section must include the matters set out in subsection 136‑55(5).
(3) The Commissioner may issue a commutation authority under this section to any *superannuation income stream provider of a *superannuation income stream of which you are the *retirement phase recipient.
(4) The total of all reduction amounts stated in commutation authorities issued under this section relating to an *excess transfer balance determination must not exceed the difference between:
(a) the commutable amount mentioned in subsection 136‑55(1); and
(b) the sum of:
(i) any *superannuation lump sums notified to the Commissioner under section 136‑85 in respect of the determination; and
(ii) any *transfer balance debits arising in your *transfer balance account under item 5 of the table in subsection 294‑80(1) of the
Income Tax Assessment Act 1997 because of any original commutation authority.
(1) The Commissioner must notify you in writing if, at the end of a day after the Commissioner has issued an *excess transfer balance determination to you:
(a) the sum of all *transfer balance debits arising in your *transfer balance account since the determination was issued falls short of the *crystallised reduction amount; and
(b) you have *excess transfer balance in your transfer balance account; and
(c) either:
(i) the only *superannuation income streams of which you are a *retirement phase recipient are *capped defined benefit income streams; or
(ii) you are no longer a retirement phase recipient of any superannuation income stream.
Note: A debit arises in your transfer balance account when the Commissioner issues a notice under this section: see item 7 of the table in subsection 294‑80(1) of the
Income Tax Assessment Act 1997 .(2) A notice under subsection (1) must state the amount of the *excess transfer balance mentioned in paragraph (1)(b).
(1) A *superannuation income stream provider issued with a commutation authority under this Subdivision must, within 60 days after the commutation authority is issued, pay by way of commutation of the specified *superannuation income stream, a *superannuation lump sum equal to the lesser of:
(a) the reduction amount stated in the commutation authority; and
(b) the *maximum available release amount for the *superannuation interest that supports the specified superannuation income stream.
Exception for capped defined benefit income streams
(2) Despite subsection (1), if the specified *superannuation income stream is a *capped defined benefit income stream, the *superannuation income stream provider may choose not to comply with the commutation authority.
Exception for deceased member
(3) Despite subsection (1), if the *retirement phase recipient has died, the *superannuation income stream provider may choose not to comply with the commutation authority.
(1) A *superannuation income stream provider issued with a commutation authority under this Subdivision must notify the Commissioner of the amount of a *superannuation lump sum paid in accordance with the commutation authority.
(2) If a *superannuation income stream provider chooses under subsection 136‑80(2) or (3) not to comply with the commutation authority, the provider must notify the Commissioner of that choice.
(3) A notice under this section must be in the *approved form and must be given within 60 days after the commutation authority is issued.
Note: Section 286‑75 provides an administrative penalty for breach of this subsection.
(1) A *superannuation income stream provider issued with a commutation authority under this Subdivision must notify you if the superannuation income stream provider:
(a) pays a *superannuation lump sum in accordance with the commutation authority; or
(b) chooses under subsection 136‑80(2) not to comply with the commutation authority.
(2) A notice under this section must be in the *approved form and must be given within 60 days after the commutation authority is issued.
Note: Section 286‑75 provides an administrative penalty for breach of this subsection.
16
At the end of subsection 155‑5(2) in Schedule 1 Add:
; (h) an amount of *excess transfer balance tax payable for an *excess transfer balance period.
Omit “Division 293 tax”, substitute “Division 293 tax or excess transfer balance tax”.
Repeal the subsection, substitute:
(3) This section does not apply to the following *assessable amounts:
(a) the *Division 293 tax payable by you in relation to an income year in relation to your *taxable contributions for the income year;
(b) the *excess transfer balance tax payable by you for an *excess transfer balance period.
19
Subsection 250‑10(2) in Schedule 1 (after table item 38BB) Insert:
38BC | excess transfer balance tax | 294‑240 and 294‑245 |
Repeal the paragraph, substitute:
(a) you are required to give a notice to an entity (other than the Commissioner) in the *approved form by a particular day under any of the following provisions:
(i) section 96‑42 (about releasing superannuation);
(ii) section 136‑90 (about commutation authorities); and
After:
Superannuation providers are also required to give information about roll‑over superannuation benefits paid from superannuation plans.
insert:
Life insurance companies must give the Commissioner information about holders of certain life insurance policies.
Repeal the paragraph, substitute:
(b) may ask a *life insurance company that has given information in a statement under section 390‑20 in relation to the individual to give the individual or the trustee the same information; and
(c) may ask the superannuation provider or life insurance company to give the information in writing.
23
Subsections 390‑15(2), (3) and (4) in Schedule 1 After “*superannuation provider”, insert “or *life insurance company”.
Omit “provider considers”, substitute “provider or company considers”.
Add:
(1) A *life insurance company must give the Commissioner a statement in relation to an individual if:
(a) the individual held:
(i) an *exempt life insurance policy that provides for an *annuity that is a *superannuation income stream that is in the *retirement phase; or
(ii) a *life insurance policy covered by paragraph (b) of the definition of
complying superannuation life insurance policy ; and(b) the individual held the policy at any time during the period specified in the determination under subsection (3).
Note: Section 286‑75 provides an administrative penalty for breach of this subsection.
(2) The statement must:
(a) be in the *approved form; and
(b) be given to the Commissioner on a day specified in the determination under subsection (3).
(3) The Commissioner may determine, by legislative instrument:
(a) the period mentioned in subsection (1); and
(b) the day on which a statement must be given to the Commissioner.
(4) The determination may specify a period beginning before, or a day before, the commencement of either or both of the following:
(a) this section;
(b) the determination.
(5) The *approved form may require the statement to contain information about the policy held by the individual.
(6) The *approved form may require the statement to contain the *tax file number of:
(a) the *life insurance company; and
(b) the individual who holds the policy if:
(i) the individual has quoted the individual’s tax file number to the life insurance company; or
(ii) a person has quoted the individual’s tax file number to the life insurance company (and had authority to do so).
Add:
Note 3: If your superannuation benefit is a superannuation income stream benefit that is defined benefit income, see Subdivision 303‑A.
Add:
Note: If your superannuation benefit is a superannuation income stream benefit that is defined benefit income, see Subdivision 303‑A.
Add:
Note: If your superannuation income stream benefit is defined benefit income, see Subdivision 303‑A.
Repeal the note, substitute:
Note 1: If your superannuation income stream benefit includes an element untaxed in the fund, see section 302‑85.
Note 2: If your superannuation income stream benefit is defined benefit income, see Subdivision 303‑A.
Add:
Note: If your superannuation income stream benefit is defined benefit income, see Subdivision 303‑A.
Add:
Note: If your superannuation income stream benefit is defined benefit income, see Subdivision 303‑A.
Insert:
Guide to Division 303
303‑A Modifications for defined benefit income
303‑B Other special circumstances
Under Subdivision 303‑A, the tax treatment of superannuation income stream benefits that are defined benefit income can be less favourable to you if that income exceeds your defined benefit income cap.
Subdivision 303‑B sets out special circumstances in which superannuation benefits are neither assessable income nor exempt income.
Operative provisions 303‑2 Effect of exceeding defined benefit income cap on assessable income
303‑3 Effect of exceeding defined benefit income cap on tax offsets
303‑4 Meaning of
defined benefit income cap
(1) Despite sections 301‑10 and 302‑65, if:
(a) during a *financial year, you receive one or more *superannuation income stream benefits:
(i) that are *defined benefit income; and
(ii) to which either section 301‑10 or 302‑65 applies; and
(b) the sum of all of those benefits (other than any *elements untaxed in the fund of those benefits) exceeds your *defined benefit income cap for the financial year;
50% of that excess is assessable income.
(2)
Defined benefit income is a *superannuation income stream benefit that is paid from a *capped defined benefit income stream.
Despite sections 301‑100 and 302‑85, if:
(a) during a *financial year, you receive one or more *superannuation income stream benefits:
(i) that are *defined benefit income; and
(ii) in relation to which you are entitled, or apart from this section you would be entitled, to one or more *tax offsets under section 301‑100 or 302‑85; and
(b) the sum of all of the superannuation income stream benefits you receive during the financial year:
(i) that are defined benefit income; and
(ii) to which section 301‑10, 301‑100, 302‑65 or 302‑85 applies;
exceeds your *defined benefit income cap for the financial year;
the sum of those tax offsets is reduced (but not below zero) by an amount equal to 10% of that excess.
(1) Your
defined benefit income cap for a *financial year is the following amount (rounded up to the nearest dollar):(2) Despite subsection (1) of this section, if a particular day in a *financial year is the first day in relation to which section 301‑10, 301‑100, 302‑65 or 302‑85:
(a) applies to you; or
(b) would apart from this Subdivision apply to you;
your
defined benefit income cap for the financial year is the following amount (rounded up to the nearest dollar):
(3) Despite subsections (1) and (2) of this section, if:
(a) in a case where subsection (1) applies—during the *financial year, you receive any amounts of *defined benefit income to which none of sections 301‑10, 301‑100, 302‑65 and 302‑85 apply; or
(b) in a case where subsection (2) applies—during the financial year, you receive after the day mentioned in that subsection any amounts of defined benefit income to which none of sections 301‑10, 301‑100, 302‑65 and 302‑85 apply;
your
defined benefit income cap for the financial year under subsection (1) or (2) (as the case requires) is reduced by the sum of those amounts.
Add:
Capped defined benefit income stream
(4) This section does not apply in relation to a payment if the whole of the payment is a *superannuation income stream benefit that is paid from a *capped defined benefit income stream.
Note: For withholding amounts from a superannuation income stream, see section 12‑80.
Insert:
294‑A Application of Division 294 of the
Income Tax Assessment Act 1997 294‑B CGT relief
294‑10 Application of Division 294 of the
Income Tax Assessment Act 1997 294‑30 Minor excess transfer balances disregarded if remedied in first 6 months
Division 294 of the
Income Tax Assessment Act 1997 applies on and after 1 July 2017.
Despite sections 294‑30 and 294‑140 of the
Income Tax Assessment Act 1997 (which are about when you have excess transfer balance), you do not have excess transfer balance in your transfer balance account on any day in the period of 6 months beginning on 1 July 2017 if:
(a) the only transfer balance credits in the account in that period arose under item 1 of the table in subsection 294‑25(1) of that Act (which is about superannuation income streams you have just before 1 July 2017); and
(b) the sum of those transfer balance credits exceeds your transfer balance cap, but is less than or equal to $1,700,000; and
(c) at the end of the period, the sum of all the transfer balance debits arising in your transfer balance account equals or exceeds the amount of the excess from paragraph (b).
294‑100 Object
294‑105 Interpretation
294‑110 Segregated current pension assets
294‑115 Superannuation funds using the proportionate method—deemed sale and purchase of CGT asset
294‑120 Superannuation funds using the proportionate method—disregard initial capital gain but recognise deferred notional gain
The object of this Subdivision is to provide temporary relief from certain capital gains that might arise as a result of individuals complying with the following legislative changes:
(a) the introduction of a transfer balance cap (as a result of Schedule 1 to the
Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 );(b) the exclusion of transition to retirement income streams (and similar income streams) from being superannuation income streams in the retirement phase (as a result of Schedule 8 to that Act).
In this Subdivision:
pre‑commencement period means the period:
(a) starting on the start of the day on which the Bill that became the
Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 was introduced into the House of Representatives; and(b) ending just before 1 July 2017.
(1) This section applies if:
(a) at the start of the pre‑commencement period, a CGT asset of a fund is a segregated current pension asset of the fund; and
(b) at a time (the
cessation time ) in the pre‑commencement period, the asset ceases to be a segregated current pension asset of the fund; and(c) the fund held the CGT asset throughout the pre‑commencement period (disregarding subsection (3)); and
(d) the fund is a complying superannuation fund throughout the period:
(i) starting at the start of the pre‑commencement period; and
(ii) ending at the cessation time; and
(e) the trustee of the fund makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection (2).
(2) A choice made for the purposes of paragraph (1)(e):
(a) is to be in the approved form; and
(b) can only be made on or before the day by which the trustee of the fund is required to lodge the fund’s income tax return for the 2016‑17 income year; and
(c) cannot be revoked.
(3) For the purposes of Parts 3‑1 and 3‑3 of the
Income Tax Assessment Act 1997 , the fund is taken:
(a) to have sold, immediately before the cessation time, the asset for a consideration equal to its market value; and
(b) to have purchased the asset again at the cessation time for a consideration equal to its market value.
Application
(1) This section applies in relation to a CGT asset of a fund if:
(a) the fund is a complying superannuation fund throughout the pre‑commencement period; and
(b) the proportion mentioned in subsection 295‑390(3) of the
Income Tax Assessment Act 1997 in respect of the fund for the 2016‑17 income year is greater than nil; and(c) the fund held the asset throughout the pre‑commencement period; and
(d) throughout the pre‑commencement period, the asset:
(i) was not a segregated current pension asset of the fund; and
(ii) was not a segregated non‑current asset of the fund; and
(e) the trustee of the fund makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection (2).
(2) A choice made for the purposes of paragraph (1)(e):
(a) is to be in the approved form; and
(b) can only be made on or before the day by which the trustee of the fund is required to lodge the fund’s income tax return for the 2016‑17 income year; and
(c) cannot be revoked.
Deemed sale and purchase
(3) For the purposes of Parts 3‑1 and 3‑3 of the
Income Tax Assessment Act 1997 , the fund is taken:
(a) to have sold, immediately before 1 July 2017, the asset for a consideration equal to its market value; and
(b) to have purchased the asset again just after that sale for a consideration equal to its market value.
Application
(1) This section applies in relation to a CGT asset of a complying superannuation fund if:
(a) section 294‑115 applies in relation to the CGT asset; and
(b) as a result of paragraph 294‑115(3)(a), the fund makes a capital gain in respect of the asset (disregarding this section); and
(c) the trustee of the fund makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection (2).
(2) A choice made for the purposes of paragraph (1)(c):
(a) is to be in the approved form; and
(b) can only be made on or before the day by which the trustee of the fund is required to lodge the fund’s income tax return for the 2016‑17 income year; and
(c) cannot be revoked.
Disregard initial capital gain
(3) Disregard the capital gain mentioned in paragraph (1)(b).
Recognition of deferred notional gain
(4) The
deferred notional gain is the 2016‑17 non‑exempt proportion of the amount of the fund’s net capital gain for the 2016‑17 income year determined on the assumptions that:
(a) subsection (3) of this section does not apply; and
(b) the fund made no capital gains in that income year other than the gain mentioned in paragraph (1)(b); and
(c) the fund made no capital losses in that income year; and
(d) the fund had no previously unapplied net capital losses from earlier income years.
(5) For the purposes of Division 102 of the
Income Tax Assessment Act 1997 , if a realisation event happens to the asset in an income year that starts on or after 1 July 2017:
(a) treat the fund as having made a capital gain in that income year equal to the deferred notional gain; and
(b) disregard section 102‑20 of that Act in respect of that capital gain; and
(c) treat that capital gain as not being a discount capital gain.
(6) Subsection 295‑390(1) of the
Income Tax Assessment Act 1997 does not apply to the amount by which a net capital gain is increased (or comes into existence) as a result of subsection (5).(7) In this section:
2016‑17 non‑exempt proportion means 1 minus the proportion mentioned in subsection 295‑390(3) of theIncome Tax Assessment Act 1997 in respect of the fund for the 2016‑17 income year.
deferred notional gain has the meaning given by subsection (4).
Insert:
(1) This section applies for the purposes of working out the amount of your total superannuation balance just before 1 July 2017.
(2) The transfer balance mentioned in paragraph 307‑230(1)(b) of the
Income Tax Assessment Act 1997 just before 1 July 2017 is taken to be equal to:
(a) the sum of the transfer balance credits (if any) in your transfer balance account just after the start of 1 July 2017; less
(b) the sum of the transfer balance debits (if any) arising in your transfer balance account on 1 July 2017 under item 4 of the table in subsection 294‑80(1) of that Act (about payment splits).
(1) The amendments made by Part 1 (apart from items 4, 21, 22, 23, 24 and 25) apply on and after 1 July 2017.
Note: The application of the amendment made by item 4 is provided for in Division 294 of the
Income Tax (Transitional Provisions) Act 1997 .(2) The amendments made by items 21, 22, 23, 24 and 25 apply in relation to exempt life insurance policies, and life insurance policies, held on and after 30 June 2017.
(3) The amendments made by Part 2 apply in relation to the financial year starting on 1 July 2017 and later financial years.
Repeal the subsection, substitute:
(2) Your
concessional contributions cap is:
(a) for the 2017‑2018 financial year—$25,000; or
(b) for the 2018‑2019 financial year or a later financial year—the amount worked out by indexing annually the amount mentioned in paragraph (a).
Note: Subdivision 960‑M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap: see section 960‑285.
Repeal the paragraph, substitute:
(c) it is
not an amount mentioned in subsection 295‑200(2); and(d) it is
not an amount mentioned in item 2 of the table in subsection 295‑190(1).
Repeal the subsection, substitute:
(4) For the purposes of paragraph (2)(b), disregard:
(a) table item 5.3 in section 50‑25 (about income tax exemption for constitutionally protected funds); and
(b) Subdivision 295‑D (about excluded contributions).
Omit “(1)”.
Repeal the subsection.
Before “Despite”, insert “(1)”.
Insert:
; and (c) the amount (if any) by which your *defined benefit contributions for the financial year in respect of the defined benefit interest or interests exceed those notional taxed contributions.
Note: Section 291‑370 prevents some contributions from causing your concessional contributions for a financial year to exceed the concessional contributions cap.
(2) In working out your *defined benefit contributions for the *financial year for the purposes of paragraph (1)(c):
(a) if Subdivision 293‑E applies to you for the income year corresponding to the financial year—disregard subsection 293‑150(3); and
(b) if Subdivision 293‑F applies to you—disregard subsection 293‑195(2).
Note: Section 291‑370 prevents some contributions from causing your concessional contributions for a financial year to exceed the concessional contributions cap.
Insert:
Some contributions and other amounts are treated as always being within your concessional contributions cap, and therefore cannot be excess concessional contributions.
Operative provisions 291‑370 Contributions that do not result in excess contributions
(1) In working out your *concessional contributions for a *financial year, treat the sum of the following as an amount equal to your *concessional contributions cap under subsection 291‑20(2) for the financial year:
(a) contributions made in respect of you for the financial year to a *constitutionally protected fund that would (disregarding this section) be concessional contributions;
(b) if any of your *notional taxed contributions for the financial year:
(i) are worked out under section 291‑170 of the
Income Tax (Transitional Provisions) Act 1997 ; or(ii) are not worked out under that section, but only because those notional taxed contributions did not meet the requirements of paragraph 291‑170(2)(b) or (4)(b) of that Act;
the amount of those notional taxed contributions;
(c) if your *defined benefit contributions for the financial year (other than contributions and amounts covered by paragraph (a)) exceed your notional taxed contributions for the financial year—the amount of that excess;
if that sum would otherwise exceed your concessional contributions cap under subsection 291‑20(2) for the financial year.
Note: This subsection does
not take into account any increase in your concessional contributions cap under subsection 291‑20(4).
(2) For the purposes of paragraph (1)(a), treat any amounts covered by subsection 291‑25(3) or paragraph 291‑165(1)(b) or (c) for the *financial year that relate to a *superannuation interest of yours in the fund as if they were contributions made in respect of you for the financial year to the fund.
(3) This section has effect despite sections 291‑25 and 291‑165 of this Act and section 291‑170 of the
Income Tax (Transitional Provisions) Act 1997 .
Repeal the Subdivision.
Add:
Note: In some cases, section 291‑370 of the
Income Tax Assessment Act 1997 has the effect of replacing this subsection with a similar rule covering a broader class of contributions and amounts.
Add:
Note: In some cases, section 291‑370 of the
Income Tax Assessment Act 1997 has the effect of replacing this subsection with a similar rule covering a broader class of contributions and amounts.
Add:
Constitutionally protected funds
(6) This section does not apply in relation to a defined benefit interest in a constitutionally protected fund.
The amendments made by this Part apply in relation to the financial year starting on 1 July 2017 and later financial years.
Omit “very high income”, substitute “high income”.
Omit “$300,000”, substitute “$250,000”.
Omit “very high income”, substitute “high income”.
Omit “$300,000”, substitute “$250,000”.
18
Subsections 293‑20(1), 293‑155(1) and 293‑200(1) Omit “$300,000”, substitute “$250,000”.
(c) the reference to this Subdivision in subsection 131‑10(2) in that Schedule included a reference to Division 96 in that Schedule (as in force on 30 June 2018).
52
Release authorities for ENCC tax issued to individuals before 1 July 2018 but not to superannuation providers before that day
(1) This item applies to you if:
(a) the Commissioner issues you with a release authority under section 292‑405 of the
Income Tax Assessment Act 1997 in relation to an excess non‑concessional contributions tax assessment; and(b) under subsection 292‑410(4) of that Act, the Commissioner could have given the release authority to one or more superannuation providers before 1 July 2018; and
(c) the Commissioner did not do so.
(2) This item also applies to you if:
(a) the Commissioner issues you with a release authority under section 292‑405 of the
Income Tax Assessment Act 1997 in relation to an excess non‑concessional contributions tax assessment; and(b) by the end of 30 June 2018, the Commissioner had not given the release authority to any superannuation provider; and
(c) apart from subitem (3) of this item, the conditions in subsection 292‑410(3) of that Act are satisfied for that release authority after 30 June 2018.
(3) The amendments made by this Part apply as if:
(a) subsection 131‑15(3) in Schedule 1 to the
Taxation Administration Act 1953 permitted the Commissioner to issue a release authority, relating to the excess non‑concessional contributions tax assessment, to one or more superannuation providers; and(b) subsection 131‑20(2) in that Schedule also disregarded any amounts that:
(i) were stated in any other release authorities issued under section 292‑405 of the
Income Tax Assessment Act 1997 (as in force on 30 June 2018) for that assessment and given to a superannuation provider; but(ii) were not paid by the superannuation provider.
53
Release authorities issued to individuals before 1 July 2018 but assessed Division 293 tax is still payable on or after that day
(1) This item applies to you if:
(a) the Commissioner issues you with a release authority under item 1 of the table in subsection 135‑10(1) in Schedule 1 to the
Taxation Administration Act 1953 in relation to an amount of assessed Division 293 tax; and(b) under subsection 135‑45(1) in that Schedule, the Commissioner could have given the release authority to one or more superannuation providers before 1 July 2018; and
(c) the Commissioner did not do so.
(2) This item also applies to you if:
(a) the Commissioner issues you with a release authority under item 1 of the table in subsection 135‑10(1) in Schedule 1 to the
Taxation Administration Act 1953 in relation to an amount of assessed Division 293 tax; and(b) as on 30 June 2018, the 120‑day period referred to in subsection 135‑45(1) in that Schedule for the release authority is to end after that day; and
(c) apart from subitem (3) of this item, paragraphs 135‑45(1)(a) and (b) in that Schedule are satisfied for that release authority at the end of that 120‑day period.
(3) The amendments made by this Part apply as if:
(a) subsection 131‑15(4) in that Schedule permitted the Commissioner to issue a release authority, relating to the assessment of the amount of Division 293 tax, to one or more superannuation providers; and
(b) the reference to this Subdivision in subsection 131‑15(4) in that Schedule included a reference to Division 135 in that Schedule (as in force on 30 June 2018); and
(c) subsection 131‑20(2) in that Schedule also disregarded any amounts that:
(i) were stated in any other release authorities issued under Division 135 in that Schedule (as in force on 30 June 2018) for that assessment and given to a superannuation provider; but
(ii) were not paid by the superannuation provider.
54
Notice on or after 1 July 2018 of amounts not paid for release authorities issued before that day
(1) This item applies to you if:
(a) a release authority is issued under Division 96 in Schedule 1 to the
Taxation Administration Act 1953 in relation to you before 1 July 2018; and(b) the Commissioner gives you a notice under section 96‑40 in that Schedule on or after 1 July 2018 stating an amount (the
unreleased amount ) that a superannuation provider did not pay in relation to the release authority.
(2) The amendments made by this Part apply as if:
(a) subsection 131‑5(4) in that Schedule permitted you to make a request to release the unreleased amount from another of your superannuation interests; and
(b) the notice mentioned in paragraph (1)(b) of this item were a notice mentioned in paragraph 131‑5(4)(b) in that Schedule; and
(c) the reference to this Subdivision in subsection 131‑10(2) in that Schedule included a reference to Division 96 in that Schedule (as in force on 30 June 2018).
Repeal the subsection (not including the note), substitute:
(3) However, the Commissioner must not make a determination under this section in relation to a *superannuation interest if, at the time the determination is to be made, the *end benefit for the superannuation interest has become payable.
Repeal the subsection, substitute:
(1) The
debt account discharge liability for a *superannuation interest for which the Commissioner keeps a debt account is the amount by which the debt account is in debit at the time the *end benefit for the superannuation interest becomes payable.(1A) However, if the end benefit cap for the *superannuation interest stated in a notice given to the Commissioner under subsection (2) of this section or section 133‑140 is less than the amount mentioned in subsection (1) of this section, the
debt account discharge liability for the superannuation interest is an amount equal to the end benefit cap.
Repeal the subsection, substitute:
(1) The Commissioner must give you a notice under this section if the *end benefit becomes payable from a *superannuation interest for which the Commissioner keeps a debt account.
Omit “paragraph 133‑120(1)(a)”, substitute “subsection 133‑120(1)”.
Omit “paragraph 133‑120(1)(b)”, substitute “subsection 133‑120(1A)”.
Repeal the section, substitute:
(1) If:
(a) a *superannuation provider has been given a notice under section 133‑75 saying that the Commissioner has started to keep a debt account for a *superannuation interest; and
(b) the superannuation provider receives a request to pay the *end benefit from the superannuation interest or the end benefit becomes payable from the superannuation interest;
the superannuation provider may, in the *approved form, request the Commissioner to advise as to the status of the debt account.
(2) If the Commissioner receives a request, the Commissioner must advise the *superannuation provider as soon as practicable whether or not the debt account is in debit.
Repeal the paragraph, substitute:
(a) unless subsection (1A) applies—the amount of the end benefit cap mentioned in subsection 133‑120(2) for the superannuation interest; and
Insert:
(1A) The notice does not need to state the amount of the end benefit cap if:
(a) the *superannuation provider has already given the Commissioner notice of the end benefit cap under subsection 133‑120(2); or
(b) before the end of the period mentioned in subsection (2), the Commissioner has advised the superannuation provider under subsection 133‑135(2) that the debt account is not in debit.
Omit “133‑135 or”.
The amendments made by this Part apply in relation to superannuation interests from which the end benefit becomes payable on or after 1 July 2017.
Add:
990‑A Combining notices
990‑5 Commissioner may combine notices
(1) For the purposes of a *taxation law under which the Commissioner must or may give you a document (however described), that document may be included in or with any other document (however described) that the Commissioner gives you under a taxation law.
(2) This section is enacted for the avoidance of doubt.
Omit the second sentence.
Repeal the subsection.
Repeal the subsection.
Omit the second sentence.
Omit the second sentence.
Repeal the subsection.
Repeal the subsection.
Repeal the subsection.
Omit “(1)”.
Repeal the subsection.
Omit the second sentence.
Repeal the subsection.
78
Subsections 292‑230(3), 292‑310(3), 292‑465(8), 292‑467(3) and 295‑625(1) Repeal the subsections.
Repeal the heading.
80
Subsections 815‑30(8), 815‑35(8) and 815‑145(6) Repeal the subsections.
Repeal the subsection.
Omit “(1)”.
Repeal the subsection.
Repeal the subsection.
Repeal the subsection.
Repeal the subsection.
Repeal the subsection.
Omit “(1)”.
Repeal the subsection.
Repeal the subsections.
Repeal the subsection.
Repeal the subsection.
The amendments made by this Part apply to documents (however described) that the Commissioner gives on or after 1 July 2017 under taxation laws.
94
Subsection 3(1) (subparagraphs (b)(i) and (iii) of the definition of benefit ) After “under”, insert “former”.
Insert:
available early release authority amount , in relation to a person at a particular time, means the amount worked out by:
(a) starting with the person’s early release authority amount at that time; and
(b) subtracting from the result of paragraph (a) the person’s early release deduction amount at that time; and
(c) adding to the result of paragraph (b) the lesser of:
(i) the amount referred to in paragraph (a) of the definition of
early release amount ; and(ii) the modified early release deduction amount in relation to the person at the time.
Note 1: The result of paragraph (b) may be less than nil.
Note 2: Subparagraph (c)(i) is affected by subsection (2).
early release authority amount , in relation to a person at a particular time, means the sum of the amounts referred to in paragraphs (b) to (e) of the definition ofearly release amount .Note: This definition is affected by subsection (2).
96
Subsection 79A(1) (definition of early release lump sum ) Repeal the definition, substitute:
early release lump sum means a lump sum paid under section 79B.
Insert:
modified early release deduction amount , in relation to a person at a particular time, means the total of the following:
(a) the amount of each early release lump sum previously paid to or for the benefit of the person under subsection 79B(1);
(b) interest on the amount of each such early release lump sum for the period beginning at the time the early release lump sum is paid and ending at the particular time.
Omit “For the purposes of the definition of
early release amount , work out the sum of the amounts referred to in that definition”, substitute “For the purposes of a provision mentioned in subsection (3), work out an amount referred to in the definition ofearly release amount ”.
After “early release amount”, insert “and early release authority amount”.
Add:
(3) For the purposes of subsection (2), the provisions are as follows:
(a) the definition of
early release amount ;(b) the definition of
early release authority amount ;(c) the definition of
available early release authority amount .
Omit “(the
early release lump sum )”.
Repeal the note.
Insert:
(1A) A lump sum may be paid in compliance with a release authority issued to CSC under section 131‑15 in Schedule 1 to the
Taxation Administration Act 1953 for the benefit of the following persons:
(a) an eligible employee;
(b) a deferred benefit member;
(c) a person who has made an election under section 110T (postponement of benefits).
Add:
Note: The components that make up the person’s early release amount and early release authority amount are not reduced when a lump sum is paid under this section. However, when a benefit to which the person is entitled under this Act becomes payable to the person, the amount of the benefit is reduced to reflect any previous lump sums paid to or for the benefit of the person (see section 79D).
Omit “exceed the person’s available early release amount at that time”, substitute:
exceed:
(a) for a lump sum paid under subsection 79B(1)—the person’s available early release amount at that time; and
(b) for a lump sum paid under subsection 79B(1A)—the person’s available early release authority amount at that time.
After “CSC under”, insert “former”.
After “under”, insert “former”.
Omit “or transitional”, substitute “mentioned in subparagraph (2)(a)(i) or (iii) or a transitional”.
After “CSC under”, insert “former”.
After “under”, insert “former”.
Omit “or transitional”, substitute “mentioned in subparagraph (3)(a)(i) or (iii) or a transitional”.
Insert:
(fa) if the instrument is a regulation relating to superannuation (other than a regulation to which section 7 of the
Superannuation (Objective) Act 2016 does not apply)—contain a statement of compatibility prepared under subsection 7(1) of that Act; and
Add:
(1) A *superannuation income stream benefit is a
retirement phase superannuation income stream benefit (orRP superannuation income stream benefit ) of a *superannuation fund at a time if it is payable by the fund at that time from a *superannuation income stream that is in the *retirement phase at that time.(2) A *superannuation income stream benefit is also a
retirement phase superannuation income stream benefit (orRP superannuation income stream benefit ) of a *superannuation fund at a time if it is payable by the fund after that time from a *superannuation income stream that:
(a) is a *deferred superannuation income stream; and
(b) is in the *retirement phase at that time.
(1) A *superannuation income stream is in the
retirement phase at a time if a *superannuation income stream benefit is payable from it at that time.(2) A *superannuation income stream is also in the
retirement phase at a time if:
(a) it is a *deferred superannuation income stream; and
(b) a *superannuation income stream benefit will be payable from it to a person after that time; and
(c) the person has satisfied (whether at or before that time) a condition of release specified in any of the following items of the table in Schedule 1 to the
Superannuation Industry (Supervision) Regulations 1994 :
(i) 101 (retirement);
(ii) 102A (terminal medical condition);
(iii) 103 (permanent incapacity);
(iv) 106 (attaining age 65).
(3) However, a *superannuation income stream is not in the
retirement phase if it is any of the following:
(a) a transition to retirement income stream (within the meaning of Part 6 of the
Superannuation Industry (Supervision) Regulations 1994 );(b) a non‑commutable allocated annuity (within the meaning of those regulations);
(c) a non‑commutable allocated pension (within the meaning of those regulations);
(d) a transition to retirement income pension (within the meaning of Part 4 of the
Retirement Savings Accounts Regulations 1997 );(e) a non‑commutable allocated pension (within the meaning of those regulations).
(4) A *superannuation income stream is also not in the
retirement phase in an income year if:
(a) the superannuation income stream is specified in a commutation authority issued by the Commissioner under Subdivision 136‑B in Schedule 1 to the
Taxation Administration Act 1953 to a *superannuation income stream provider; and(b) the superannuation income stream provider is required by section 136‑80 in that Schedule to pay a *superannuation lump sum but fails to do so within the 60‑day period mentioned in that section; and
(c) the income year is the income year in which the 60‑day period ended, or a later income year.
Before “The”, insert “(1)”.
Add:
(2) The
accumulation phase value of an individual’s *superannuation interest, at a particular time when the interest is not in the *retirement phase, is:
(a) if the regulations specify that value or a method for determining that value—that value; or
(b) otherwise—the total amount of the *superannuation benefits that would become payable if the individual voluntarily caused the interest to cease at that time.
Add:
(1) Your
total superannuation balance , at a particular time, is the sum of the following:
(a) if you have one or more *superannuation interests that are not in the *retirement phase—the *accumulation phase values, at that time, of each such interest;
(b) if you have a *transfer balance account—the *transfer balance of the account at that time (but not less than nil);
(c) the amount of each *roll‑over superannuation benefit:
(i) paid at or before that time; and
(ii) received by the *complying superannuation plan, or the entity from which the *superannuation annuity is being purchased, after that time; and
(iii) not reflected in the value in paragraph (a) or the balance in paragraph (b).
Modification for structured settlement contributions
(2) However, if a *structured settlement contribution is made at or before a time in respect of you, your
total superannuation balance at that time is modified by:
(a) if you do not have a *transfer balance account—reducing the sum worked out under subsection (1) by the sum of any such structured settlement contributions; and
(b) if you have a transfer balance account:
(i) first, working out the *transfer balance mentioned in paragraph (1)(b) disregarding the operation of item 2 of the table in subsection 294‑80(1); and
(ii) then, reducing the sum worked out under subsection (1) (having regard to subparagraph (i) of this paragraph) by the sum of any such structured settlement contributions.
Modification for account‑based income streams
(3) For the purposes of working out the *transfer balance mentioned in paragraph (1)(b):
(a) if a *transfer balance credit has arisen, at or before that time, in your *transfer balance account in respect of a *superannuation income stream covered by subsection (4)—disregard the operation of the following provisions in relation to the superannuation income stream:
(i) items 1 and 2 of the table in subsection 294‑25(1);
(ii) items 1, 3, 4, 5 and 6 of the table in subsection 294‑80(1); and
(b) if, at that time, you have a *superannuation interest that supports a superannuation income stream covered by subsection (4) of this section—increase the amount of that balance by the total amount of the *superannuation benefits that would become payable if:
(i) you had the right to cause the superannuation interest to cease at that time; and
(ii) you voluntarily caused the superannuation interest to cease at that time.
(4) This subsection covers a *superannuation income stream that is any of the following:
(a) an *allocated annuity;
(b) an *allocated pension;
(c) an allocated pension (within the meaning of the
Retirement Savings Accounts Regulations 1997 );(d) an *account‑based annuity;
(e) an account‑based pension (within the meaning of the
Superannuation Industry (Supervision) Regulations 1994 );(f) an account based pension (within the meaning of the
Retirement Savings Accounts Regulations 1997 );(g) a market linked annuity (within the meaning of the
Superannuation Industry (Supervision) Regulations 1994 );(h) a market linked pension (within the meaning of the
Superannuation Industry (Supervision) Regulations 1994 );(i) a market linked pension (within the meaning of the
Retirement Savings Accounts Regulations 1997 ).
Insert:
10A | *General transfer balance cap | section 294‑35 |
Repeal the section, substitute:
(1) This section applies in relation to the amounts listed at items 8 to 12 in section 960‑265.
Indexing amounts
(2) You index the amount by:
(a) first, multiplying its base amount mentioned in subsection (3) by its *indexation factor mentioned in subsection (5); and
(b) next, rounding the result in paragraph (a) down to the nearest multiple of its *rounding amount.
Example 1: An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $143,000, the indexed amount is rounded back down to $140,000.
Example 2: An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.
(3) The amount (the
base amount ) for an amount to which this section applies is:
(a) unless paragraph (b) applies—the amount for the 2007‑2008 income year or *financial year; or
(b) if the amount is mentioned in item 9 or 10A in section 960‑265—the amount for the 2017‑2018 financial year.
(4) You do not index the amount if the *indexation factor is 1 or less.
Indexation factor
(5) For indexing an amount, its
indexation factor is:where:
base quarter means:
(a) unless paragraph (b) applies—the quarter ending on 31 December 2006; or
(b) if the amount is mentioned in item 9 or 10A in section 960‑265—the quarter ending on 31 December 2016.
(6) You work out the *indexation factor mentioned in subsection (5) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
Index number and rounding amount
(7) For indexing an amount to which this section applies:
(a) the
index number for a *quarter is set out in column 2 of the relevant item in the following table; and(b) the
rounding amount is set out in column 3 of that item.
1 | Items 8, 10, 11 and 12 | the *index number mentioned in subsection 960‑280(4) (which is about average weekly ordinary time earnings) | $5,000 |
2 | Item 9 (concessional contributions cap) | the *index number mentioned in subsection 960‑280(4) (which is about average weekly ordinary time earnings) | $2,500 |
3 | Item 10A (general transfer balance cap) | the *index number mentioned in subsection 960‑280(1) (which is about the CPI) | $100,000 |
Insert:
account‑based annuity has the meaning given by theSuperannuation Industry (Supervision) Regulations 1994 .
accumulation phase value of a *superannuation interest has the meaning given by subsection 307‑205(2).
assessed excess transfer balance tax means *excess transfer balance tax, as assessed under Schedule 1 to theTaxation Administration Act 1953 .
capped defined benefit income stream has the meaning given by section 294‑130.
child recipient of a *superannuation income stream has the meaning given by section 294‑175.
Commonwealth public sector superannuation scheme has the same meaning as in theSuperannuation (Unclaimed Money and Lost Members) Act 1999 .
8
Subsection 995‑1(1) (after subparagraph (b)(i) of the definition of complying superannuation life insurance policy ) Insert:
(ia) provides for an *immediate annuity, if the annuity is a *superannuation income stream that is
not in the *retirement phase; or
Insert:
crystallised reduction amount has the meaning given by section 136‑10 in Schedule 1 to theTaxation Administration Act 1953 .
debit value , of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream, has the meaning given by section 294‑145.
default commutation notice has the meaning given by section 136‑10 in Schedule 1 to theTaxation Administration Act 1953 .
deferred superannuation income stream has the meaning given by theSuperannuation Industry (Supervision) Regulations 1994.
defined benefit income has the meaning given by section 303‑2.
defined benefit income cap has the meaning given by section 303‑4.
disregarded small fund assets has the meaning given by section 295‑387.
excess transfer balance has the meaning given by section 294‑30 and modified by section 294‑140.
excess transfer balance determination has the meaning given by section 136‑10 in Schedule 1 to theTaxation Administration Act 1953 .
excess transfer balance earnings has the meaning given by section 294‑235.
excess transfer balance period has the meaning given by section 294‑230.
excess transfer balance tax means tax imposed by theSuperannuation (Excess Transfer Balance Tax) Imposition Act 2016 .
general transfer balance cap has the meaning given by section 294‑35.
member spouse has the same meaning as in Part VIIIB of theFamily Law Act 1975 .
retirement phase :
(a) section 307‑80 sets out when a *superannuation income stream is in the
retirement phase ; and(b) a *superannuation interest is in the
retirement phase at a time if it supports a superannuation income stream that is in the retirement phase at that time.
retirement phase recipient of a *superannuation income stream has the meaning given by section 294‑20.
retirement phase superannuation income stream benefit (orRP superannuation income stream benefit ) has the meaning given by section 307‑75.
rounding amount has the meaning given by section 960‑285.
special value , of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream, has the meaning given by section 294‑135.
structured settlement contribution has the meaning given by section 294‑80.
superannuation income stream provider for a *superannuation income stream means:
(a) for a superannuation income stream provided by a *superannuation fund—the trustee of the fund; or
(b) for a superannuation income stream that is a pension for the purposes of the
Retirement Savings Accounts Act 1997 —the *RSA provider; or(c) for a superannuation income stream provided by an *approved deposit fund—the trustee of the fund; or
(d) for a superannuation income stream provided by a *life insurance company
— the life insurance company.
total superannuation balance has the meaning given by section 307‑230.
transfer balance has the meaning given by section 294‑30.
transfer balance account means an account that arises under section 294‑15.
transfer balance cap has the meaning given by section 294‑35 and modified by section 294‑185.
transfer balance credit has the meaning given by section 294‑25.
transfer balance debit has the meaning given by section 294‑80.
unused concessional contributions cap has the meaning given by section 291‑20.
10
Subsection 995‑1(1) (paragraph (d) of the definition of value ) Omit “section 307‑205”, substitute “subsection 307‑205(1)”.
A term that is defined in this Schedule applies in a provision of an Act, regulation or instrument in the same way as that provision applies.
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
The abbreviation key sets out abbreviations that may be used in the endnotes.
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
The
If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.
A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.
If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.
ad = added or inserted | o = order(s) |
am = amended | Ord = Ordinance |
amdt = amendment | orig = original |
c = clause(s) | par = paragraph(s)/subparagraph(s) |
C[x] = Compilation No. x | /sub‑subparagraph(s) |
Ch = Chapter(s) | pres = present |
def = definition(s) | prev = previous |
Dict = Dictionary | (prev…) = previously |
disallowed = disallowed by Parliament | Pt = Part(s) |
Div = Division(s) | r = regulation(s)/rule(s) |
ed = editorial change | reloc = relocated |
exp = expires/expired or ceases/ceased to have | renum = renumbered |
effect | rep = repealed |
F = Federal Register of Legislation | rs = repealed and substituted |
gaz = gazette | s = section(s)/subsection(s) |
LA = | Sch = Schedule(s) |
LIA = | Sdiv = Subdivision(s) |
(md) = misdescribed amendment can be given | SLI = Select Legislative Instrument |
effect | SR = Statutory Rules |
(md not incorp) = misdescribed amendment | Sub‑Ch = Sub‑Chapter(s) |
cannot be given effect | SubPt = Subpart(s) |
mod = modified/modification | |
No. = Number(s) | commenced or to be commenced |
Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 | 81, 2016 | 29 Nov 2016 | Sch 1–3, 5–9, Sch 10 (items 55–93, 112) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 8, 9) Sch 4: Sch 10 (items 1–54, 94–111): Remainder: 29 Nov 2016 (s 2(1) item 1) | |
Treasury Laws Amendment (2017 Measures No. 2) Act 2017 | 55, 2017 | 22 June 2017 | Sch 1 (items 25–28): 1 Jan 2017 (s 2(1) item 6) | Sch 1 (item 28) |
item 9................................. | am No 55, 2017 |
item 28............................... | rs No 55, 2017 |
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