EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 21
INCOME TAX ASSESSMENT ACT 1936 INCOME TAX REGULATIONS (AMENDMENT)
Issued by Authority of the Treasurer
The Income Tax Assessment Amendment Act (No 3) 1984 inserted a new Subdivision AA in Division 2 of Part III of the Income Tax Assessment Act 1936. Subdivision AA contains a new system for the taxation of superannuation, termination of employment and kindred payments, made on or after 1 July 1983, and sets down rules pertaining to funds known as approved deposit funds for the receipt on deposit of termination payments to which the new rules apply.
Section 27A, which was inserted by the new Subdivision AA, contains a number of definitions and interpretational provisions necessary for the operation of the Subdivision. Paragraph (f) of the definition of ‘approved trustee’ in sub-section 27A(1) provides that an ‘approved trustee’ of an approved deposit fund includes a body that is, or is included in a class of bodies that is, prescribed for the purposes of that paragraph.
The Westpac Banking Corporation, which would be an eligible approved trustee in its own right within the meaning of paragraph (b) of the definition of ‘approved trustee’ in sub-section 27A(1) of the Act, is prevented by its Deed of Settlement from acting as a trustee, and has requested that its wholly owned subsidiary, the Bank of New South Wales Nominees Pty Limited, be prescribed as an approved trustee under sub-section 27A(1).
The regulation inserts a new regulation 4ADA into Part III of the Income Tax Regulations to specify the Bank of New South Wales Nominees Pty Limited as a prescribed body for the purposes of paragraph (f) of the definition of ‘approved trustee’ in sub-section 27A(1) of the Act
The Treasury Canberra ACT