Income Tax (Former Complying Superannuation Funds) Act 1994
Act No. 171 of 1994 as amended
This compilation was prepared on 22 March 2007
taking into account amendments up to Act No. 17 of 2007
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Imposition of tax
Notes
An Act to impose income tax on the net previous income of non-complying superannuation funds that were formerly complying superannuation funds
1 Short title [see Note 1]
This Act may be cited as the Income Tax (Former Complying Superannuation Funds) Act 1994.
2 Commencement [see Note 1]
This Act commences on the day on which it receives the Royal Assent.
3 Imposition of tax
Income tax is imposed on the taxable income of a non-complying superannuation fund within the meaning of the Income Tax Assessment Act 1997, to the extent that the taxable income is attributable to the inclusion of an amount in the fund’s assessable income under table item 2 in section 295‑320 of that Act.
Notes to the Income Tax (Former Complying Superannuation Funds) Act 1994
Note 1
The Income Tax (Former Complying Superannuation Funds) Act 1994 as shown in this compilation comprises Act No. 171, 1994 amended as indicated in the Tables below.
For all relevant information pertaining to application, saving or transitional provisions see Table A.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
Income Tax (Former Complying Superannuation Funds) Act 1994 | 171, 1994 | 16 Dec 1994 | 16 Dec 1994 | |
Income Tax (Former Complying Superannuation Funds) Amendment Act 2007 | 17, 2007 | 15 Mar 2007 | (a) | Sch. 1 (item 3) |
(a) Section 2 of the Income Tax (Former Complying Superannuation Funds) Amendment Act 2007 provides as follows:
2 This Act commences immediately after the commencement of Schedule 1 to the Tax Laws Amendment (Simplified Superannuation) Act 2007.
Schedule 1 commenced on 15 March 2007.
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 3.................... | am. No. 17, 2007 |
Table A
Application, saving or transitional provisions
Income Tax (Former Complying Superannuation Funds) Amendment Act 2007 (No. 17, 2007)
Schedule 1
3 Application
The amendments made by this Schedule apply to the 2007‑2008 income year and later years.
Overview
The Income Tax (Former Complying Superannuation Funds) Act 1994, enacted by the Parliament of Australia, was introduced to address the need to impose income tax on the net previous income of non-complying superannuation funds that were formerly complying superannuation funds. This Act came into effect on the day it received Royal Assent and was designed to ensure that income derived from these funds is appropriately taxed. The policy objective is to maintain the integrity of the superannuation system by ensuring that funds which have ceased to comply with superannuation laws are subject to income tax. The Act was subsequently amended by the Income Tax (Former Complying Superannuation Funds) Amendment Act 2007 to apply from the 2007-2008 income year onwards, further refining the tax treatment of such funds.
Scope and Application
The Income Tax (Former Complying Superannuation Funds) Act 1994 applies to the imposition of income tax on the net previous income of non-complying superannuation funds that were previously complying superannuation funds. This Act targets entities that have transitioned from complying to non-complying status, thereby affecting the tax treatment of their income. The Act applies to all relevant income years following its commencement and subsequent amendments, including those made by the Income Tax (Former Complying Superannuation Funds) Amendment Act 2007, which apply to the 2007-2008 income year and subsequent years. The Act operates within the Commonwealth jurisdiction of Australia and its application is governed by the Income Tax Assessment Act 1997. There are no specific exclusions, exemptions, or thresholds mentioned within the text of the Act itself; however, the application and interpretation of the Act may be further defined through subordinate legislation and administrative instruments.
Key Provisions
The Income Tax (Former Complying Superannuation Funds) Act 1994, as amended, imposes income tax on the net previous income of superannuation funds that were once complying funds but are now non-complying. Section 3 of the Act specifies that this tax applies to the taxable income of such funds, particularly where that income is attributable to amounts included in the fund's assessable income under table item 2 in section 295-320 of the Income Tax Assessment Act 1997. The Act came into effect on the day it received Royal Assent, which was 16 December 1994.
The Act places certain obligations on the non-complying superannuation funds it governs. Primarily, these funds are required to report and pay income tax on their taxable income as specified. This includes ensuring that all relevant financial information is accurately reported to the Australian Taxation Office (ATO) in accordance with the requirements of the Income Tax Assessment Act 1997 and other relevant legislation. Funds must maintain detailed records and documentation to substantiate their tax reporting and be prepared for audits or reviews by the ATO.
Failure to comply with the requirements of the Act can result in significant penalties and legal consequences. For instance, non-compliance may lead to civil penalties under section 284-10 of the Taxation Administration Act 1953, which can include fines up to 75% of the tax owed. Additionally, the Act may permit the ATO to impose general interest charges on unpaid taxes, which can further increase the financial burden on the non-complying fund. In severe cases, breaches of the Act may also lead to criminal charges, with potential penalties including fines and imprisonment. The exact penalties depend on the nature and severity of the breach, as well as any mitigating or aggravating factors.