Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2004-2005-2006-2007
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SUPERANNUATION LEGISLATION AMENDMENT (SIMPLIFICATION)
BILL 2007
INCOME TAX AMENDMENT BILL 2007
INCOME TAX (FORMER COMPLYING SUPERANNUATION FUNDS)
AMENDMENT BILL 2007
INCOME TAX (FORMER NON-RESIDENT SUPERANNUATION FUNDS)
AMENDMENT BILL 2007
INCOME TAX RATES AMENDMENT (SUPERANNUATION) BILL 2007
EXPLANATORY MEMORANDUM
(Circulated by authority of the
Treasurer, the Hon Peter Costello MP)
Table of contents
Glossary ....................................................................................... 1
General outline and financial impact ....................................................... 3
Chapter 1 Contributions rules......................................................... 7
Chapter 2 Taxation of benefit payments and employment
termination payments .................................................. 27
Chapter 3 Taxation of superannuation entities ............................. 37
Chapter 4 Other changes ............................................................. 47
Index ..................................................................................... 53
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
APRA Australian Prudential Regulation Authority
refers to sections of the ITAA 1997 that are
asterisk ()
to be created by the main Bill
ATO Australian Taxation Office
CGT capital gains tax
Commissioner Commissioner of Taxation
ETP eligible termination payment
ITAA 1936 Income Tax Assessment Act 1936
ITAA 1997 Income Tax Assessment Act 1997
main Bill Tax Laws Amendment (Simplified
Superannuation) Bill 2006
RBL reasonable benefit limit
RSA retirement savings account
SG superannuation guarantee
TAA 1953 Taxation Administration Act 1953
TFN tax file number
this Bill Superannuation Legislation Amendment
(Simplification) Bill 2007
1
General outline and financial impact
Simplified Superannuation reforms -- consequential and
other amendments
On 7 December 2006 the Tax Laws Amendment (Simplified
Superannuation) Bill 2006 (main Bill) and supporting Bills, which
implement the key elements of Simplified Superannuation, were
introduced into Parliament.
Simplified Superannuation seeks to simplify the current raft of complex
tax arrangements and remove restrictions that apply to superannuation
benefits. It aims to provide retirees with greater flexibility as to how and
when they draw down their superannuation benefits.
In addition to implementing Simplified Superannuation, the main Bill
rewrites superannuation taxation provisions from the Income Tax
Assessment Act 1936 (ITAA 1936) into the Income Tax Assessment
Act 1997 (ITAA 1997). Consolidating these provisions will provide a
clearer picture of the taxation treatment of superannuation savings across
the phases of the superannuation investment: when the money is
contributed; during the investment phase; and at the benefit payment
phase. It is drafted in a contemporary and consistent style and will cut the
number of superannuation related pages in the income tax assessment
Acts by over a third.
The Superannuation Legislation Amendment (Simplification) Bill 2007
(this Bill) and companion Bills are related Bills to the main Bill. This Bill
makes:
· consequential amendments necessary due to the rewrite of
the superannuation taxation law (such as the repeal of the old
law and updating references to the old law contained in
various Acts);
· minor additions to the law giving effect to the Simplified
Superannuation reforms; and
· amendments to enable future flows of unclaimed
superannuation monies to be paid to the Australian
Government.
3
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax (Former Complying Superannuation Funds) Amendment Bill 2007
Income Tax (Former Non-resident Superannuation Funds) Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
Schedule 1 to this Bill contains consequential amendments including the
repeal of the old superannuation taxation law in the ITAA 1936.
Schedule 2 contains other consequential amendments relating to small
business relief for capital gains tax (CGT) events.
Schedule 3 contains minor additions to the law created by the Simplified
Superannuation reforms. It also provides for future flows of unclaimed
superannuation monies from private sector superannuation funds to be
paid to the Australian Government. The amendments will assist the
Australian Taxation Office (ATO) in establishing a single access point for
lost and unclaimed superannuation and a simpler nationalised claims
process going forward. As a result, individuals will be able to seek advice
directly from the ATO on any superannuation-related issue, without
having to contact numerous government agencies.
Schedule 4 contains technical corrections.
The Income Tax Amendment Bill 2007 makes consequential amendments
to the Income Tax Act 1986. The Income Tax (Former Complying
Superannuation Funds) Amendment Bill 2007 makes consequential
amendments to the Income Tax (Former Complying Superannuation
Funds) Act 1994. The Income Tax (Former Non-resident Superannuation
Funds) Amendment Bill 2007 makes consequential amendments to the
Income Tax (Former Non-resident Superannuation Funds) Act 1994. The
Income Tax Rates Amendment (Superannuation) Bill 2007 makes
consequential amendments to the Income Tax Rates Act 1986. Each of
these Bills deals with a separate object of taxation.
Date of effect: Simplified Superannuation commences on 1 July 2007.
The revised age pension arrangements commence on 20 September 2007.
Proposal announced: The proposals were released for community
consultation on 9 May 2006 in A Plan to Simplify and Streamline
Superannuation. The Government's final decisions were announced on
5 September 2006 in Press Release No. 93, issued jointly by the Treasurer
and the Minister for Revenue and Assistant Treasurer. On
7 December 2006 in Press Release No. 131, issued jointly by the
Treasurer and Minister for Revenue and Assistant Treasurer, it was
announced that the Simplified Superannuation legislation had been
introduced into Parliament.
4
General outline and financial impact
Financial impact, compliance cost impact and regulation impact
statement: The financial impact, compliance cost impact and regulation
impact statement associated with the Simplified Superannuation reforms
are contained in the explanatory memorandum to the main Bill. The
consequential amendments in this Bill have no impact on the financial and
compliance costs identified in the explanatory memorandum to the main
Bill.
Summary of following chapters
The following chapters group amendments based on whether they relate
to the rewrite of the taxation rules regarding:
· contribution rules (Chapter 1);
· the taxation of superannuation benefit payments or
employment termination payments (Chapter 2);
· the taxation of superannuation entities (Chapter 3); and
· other changes, such as those made to arrangements for
self-managed superannuation funds or unclaimed
superannuation money (Chapter 4).
This grouping of amendments is broadly similar to that of the explanatory
memorandum to the main Bill and should assist in providing readers with
a complete picture of changes made to a particular area of superannuation
taxation and in understanding the relationship between the amendments in
this Bill and the main Bill.
Within each chapter, amendments are split into additions to the law
created by the main Bill and consequential amendments contained in this
Bill (including repeals of old law and updates to legislative references to
the old law).
All references in this explanatory memorandum to sections of the
ITAA 1997 that are to be created by the main Bill are denoted by an
asterisk (*).
5
Chapter 1
Contributions rules
Outline of chapter
1.1 This chapter outlines minor additions made to the law to clarify
or complement the operation of the contribution rules in the Tax Laws
Amendment (Simplified Superannuation) Bill 2006 (main Bill), including
the superannuation contribution deduction rules and the rules relating to
the caps on superannuation contributions.
1.2 For example, it outlines transitional deduction arrangements for
employers and individuals with substituted accounting periods, and the
extension of transitional arrangements for exemptions from the
non-concessional contributions cap for contributions related to personal
injury payments and capital gains tax (CGT) events.
1.3 It also covers the repeal of the old superannuation contribution
rules in the Income Tax Assessment Act 1936 (ITAA 1936). Updates to
references to the repealed law in other Acts are also outlined.
Additions to the law created by the main Bill
Deductions for superannuation contributions
Employees engaged in research and development activities
1.4 This Bill inserts a new subsection 73B(20A) into the ITAA 1936
to make it clear that an eligible company is able to claim a tax deduction
for superannuation contributions for employees engaged in research and
development activities under section 73B rather than section 290-60*1 of
the Income Tax Assessment Act 1997 (ITAA 1997). The conditions in
section 290-60* (eg, the contribution is made to a complying
superannuation fund) still apply to the contribution. A change is made to
the note to subsection 290-60(1)* to clarify the deduction is provided for
under section 73B and not merely increased by subsection 73B(14).
[Schedule 1, items 74, 76 and 206, subsection 73B(1) (definition of `contributions
to superannuation funds'), subsection 73B(20A) of the ITAA 1936 and
subsection 290-60(1) (Note) of the ITAA 1997]
1
Asterisk * refers to sections of the ITAA 1997 that are to be created by the main Bill.
7
Superannuation Legislation Amendment (Simplification) Bill 2007
Contributions for former employees
1.5 Section 290-85* of the ITAA 1997 ensures that employers are
entitled to a deduction for superannuation contributions made on behalf of
former employees in certain circumstances (ie, contributions to satisfy
superannuation guarantee (SG) obligations and salary sacrifice
contributions that relate to a period when the person was an employee).
This section is amended to also provide that a superannuation contribution
made on behalf of a former employee (made in lieu of salary or wages
that relate to a period of service during which they were an employee) is
tax deductible to the employer if made within two months of them ceasing
employment. [Schedule 3, items 11 and 12, paragraphs 290-85(1)(b) and (c) of the
ITAA 1997]
1.6 Currently, if a person (with an interest in the employer as
described in section 290-90* of the ITAA 1997) makes a contribution on
behalf of the former employee of the employer, a deduction will not be
available under section 290-85*. This is because the person on whose
behalf the contribution is made (the former employee) was never an
employee of the person making the contribution. Section 290-85* of the
ITAA 1997 is amended to ensure that a person who makes a contribution
in respect of another person as described under section 290-90* may, in
certain circumstances, claim a tax deduction for contributions made on
behalf of these former employees. [Schedule 3, items 13 and 14,
subsections 290-85(1A) and (3) of the ITAA 1997]
Example 1.1
John terminates employment with his employer, ABC Pty Ltd, on
28 December. ABC Pty Ltd pays John his final salary on 15 January
and consequently there is an SG obligation on this final salary
payment. XYZ Pty Ltd holds a 50 per cent shareholding in ABC Pty
Ltd and makes a contribution to satisfy ABC Pty Ltd's SG obligation
for John. The amendment to section 290-85* under this Bill would
allow a tax deduction for a contribution made by XYZ Pty Ltd to
satisfy ABC Pty Ltd's SG obligation for John even though he was
never an employee of XYZ Pty Ltd.
Deduction not available for contribution of the CGT exempt amount
1.7 A deduction cannot be claimed for contributions made by those
under age 55, which are attributable to a capital gain disregarded under
the small business CGT retirement concession. This is consistent with the
current law where the roll-over of an eligible termination payment (ETP)
that consists of the CGT exempt amount is not eligible for a tax
deduction. [Schedule 2, item 9, subsection 290-150(4) of the ITAA 1997]
8
Contribution rules
Transfers from foreign superannuation schemes
1.8 In section 290-5* of the ITAA 1997, contributions excluded
from attracting a tax deduction included a benefit transferred from an
overseas superannuation fund. However, this provision was inadvertently
narrowed and excluded transfers from foreign superannuation schemes.
This amendment ensures that an amount transferred from a foreign
superannuation scheme to an Australian superannuation fund is not a
contribution eligible for a tax deduction under Division 290* of the
ITAA 1997. [Schedule 1, item 205, section 290-5 of the ITAA 1997]
Personal contributions and the less than 10 per cent rule
1.9 Section 290-150* of the ITAA 1997 provides that a person may
claim a tax deduction for a personal contribution if certain conditions are
met. To clarify the provision and better reflect the policy intent, the
words `if applicable' are inserted so that it is clear the condition in
section 290-160* of the ITAA 1997 will apply only where a person is
involved in activities that result in them being treated as an employee for
SG purposes. [Schedule 1, item 207, subsection 290-150(2)]
Personal contributions and variation notices
1.10 An individual who wishes to claim a tax deduction for their
superannuation contributions is required to notify the trustee or retirement
savings account (RSA) provider in writing. Section 290-180* of the
ITAA 1997 provides that this notice may be varied in certain
circumstances. This amendment provides that a request to vary a notice is
not effective if the person is no longer a member of the fund or holder of
the RSA, the provider is no longer the holder of the contribution, or a
pension has begun to be paid which includes the contribution covered by
the request to vary the notice. This is consistent with the circumstances
required for the original notice to be valid. [Schedule 3, item 15,
subsection 290-180(3A) of the ITAA 1997]
Property transfers as contributions
1.11 A contribution mentioned in Part 3-30 of the ITAA 1997 can be,
or include, a transfer of property. If the contribution is, or includes, a
transfer of property, the amount of the contribution is the market value of
the property, reduced by the value of any consideration given for the
transfer of the property. The definition of `market value' is contained in
subsection 995-1(1) of the ITAA 1997. [Schedule 3, item 10, section 285-5 of
the ITAA 1997]
9
Superannuation Legislation Amendment (Simplification) Bill 2007
Substituted accounting periods
1.12 Transitional arrangements have been put in place for deductions
for superannuation contributions made by employers and individuals with
substituted accounting periods for the 2006-07 income year which end
before 1 July 2007. The transitional regime applies to the period that
begins after the taxpayer's 2006-07 income year and ends just before
1 July 2007. Employer contributions made from 1 July 2007 will be fully
deductible. These contributions, which have been claimed as a deduction,
will generally be included in the concessional contributions cap in
Subdivision 292-B* of the ITAA 1997.
1.13 The transitional arrangements allow deductions under
sections 82AAC and 82AAT of the ITAA 1936 for contributions up to the
aged-based limits that applied in the 2006-07 income year, with no
indexation applied. [Schedule 3, item 45, section 290-15 of the Income Tax
(Transitional Provisions) Act 1997]
Concessional contributions cap
Defined benefits interests and notional taxed contributions
1.14 Section 292-170* of the ITAA 1997 sets out the requirements
for a trustee to determine the notional taxed contributions for a defined
benefit interest. Subsection 292-170(6)*, as amended, deems the amount
of notional taxed contributions to be equal to the concessional
contributions cap if the person held the defined benefit interest on
5 September 2006 and the conditions in the regulations are met.
[Schedule 3, items 21, 24 and 25, paragraph 292-170(6)(d) and subsection 292-170(7) of
the ITAA 1997]
1.15 This treatment is extended to situations where the person held
the defined benefit interest on 5 September 2006 and the entire value of
the original interest is transferred to a successor fund, either directly or
through a series of transfers, where the right to accrue future benefits in
the successor fund is equivalent to those in the original fund and the
conditions in the regulations are met. [Schedule 3, items 22 and 23,
section 292-170 of the ITAA 1997]
Example 1.2
Sally held a defined benefit interest in Fund A on 5 September 2006
which is deemed to equal the concessional contributions cap. On
1 July 2008 this interest is transferred to Fund B where her right to
accrue future benefits are equivalent to Fund A.
10
Contribution rules
On 1 July 2010 the interest is then transferred to Fund C, which also
provides equivalent rights to accrue future benefits as Fund B and
satisfies any conditions in the regulations.
Sally's defined benefit interest will continue to be deemed to equal the
concessional contributions cap.
Directed termination payments
1.16 To better reflect policy intent, the transitional measure that
excludes directed termination payments from a person's concessional
contributions cap to the extent they do not exceed a total of $1 million is
amended, so that only the taxable component of each directed termination
payment is counted towards the $1 million limit. [Schedule 1, items 262 to
264, section 292-25 of the Income Tax (Transitional Provisions) Act 1997]
1.17 A further transitional measure is included to exclude the tax-free
component of directed termination payments from the concessional
contributions cap. [Schedule 1, item 261, subsection 292-25(1A) of the Income Tax
(Transitional Provisions) Act 1997]
Reserves and allocated amounts
1.18 Trustees can maintain reserves and accept contributions that are
placed into these reserves under section 115 of the Superannuation
(Industry) Supervision Act 1993. Regulations made for the purposes of
subsection 292-25(3)* of the ITAA 1997 may specify that amounts
allocated to a member of a fund are to be included in the concessional
contributions cap. [Schedule 3, item 16, subsection 292-25(3) of the ITAA 1997]
Non-concessional contributions cap
Transitional arrangements for exemptions to the cap
1.19 Transitional arrangements are in place to enable people to claim
exemptions from the non-concessional contributions cap in Subdivision
292-C* of the ITAA 1997. These arrangements apply to contributions
related to personal injury payments and CGT events where the
contribution satisfies the conditions other than being made within the
specified time limit. An extension for making such contributions is
provided until 30 June 2007. [Schedule 3, items 46 and 47,
paragraphs 292-80(3)(ea) and 292-80(3)(fa) of the Income Tax (Transitional
Provisions) Act 1997]
11
Superannuation Legislation Amendment (Simplification) Bill 2007
Example 1.3
Jane receives a settlement payment relating to a personal injury on
10 July 2006. Normally her contribution would have to be made
within 90 days to be eligible for an exemption from the
non-concessional contributions cap. However under the transitional
provision she has until 30 June 2007 to contribute the payment into a
superannuation fund.
Bob receives a settlement payment relating to a personal injury on
1 June 2007. He has 90 days to make a contribution into
superannuation for which an exemption from the non-concessional
contributions cap can be claimed. He is not required to make the
contribution before 30 June 2007.
Directed termination payments
1.20 To better reflect policy intent, a further transitional measure is
inserted to exclude the tax-free component of directed termination
payments from the non-concessional contributions cap. [Schedule 1,
item 265, section 292-90 of the Income Tax (Transitional Provisions) Act 1997]
Reserves and allocated amounts
1.21 To avoid potential circumvention of the non-concessional
contribution cap through the use of reserves, regulations made for the
purposes of paragraph 292-90(4)(a)* may specify that amounts allocated
to a member of a fund are to be included in the non-concessional
contributions cap. [Schedule 3, items 17 and 18, paragraphs 292-90(1)(aa) and
292-90(4)(a) of the ITAA 1997]
Contributions not allowed as deductions are included in the cap
1.22 As an integrity measure, the definition of `non-concessional
contributions' has been amended to include contributions that are included
in the assessable income of the superannuation provider in relation to the
superannuation plan but for which a tax deduction is not allowed by the
Commissioner of Taxation (Commissioner). This will mean that these
contributions are not included in the concessional contributions cap (but
will be included in the non-concessional contributions cap). [Schedule 3,
item 18, paragraph 292-90(4)(b) of the ITAA 1997]
12
Contribution rules
Example 1.4
Rebecca gives a notice to her fund indicating that she will claim her
$50,000 personal contribution as a tax deduction. However, the
Commissioner denies the deduction as she does not satisfy the
10 per cent rule. The amount will be counted towards her
non-concessional contributions cap (and not her concessional
contributions cap).
Contributions made to non-complying superannuation funds are
included in the cap
1.23 A superannuation fund's complying status is determined on a
yearly basis. That is, a fund is either complying or non-complying for a
whole income year. Contributions made to a non-complying fund, even if
the member believed the fund to be complying at the time the contribution
was made, are not counted towards the contributions caps in the year they
are made. However, non-complying funds can, after appropriate
rectifying actions, become complying funds. From this point, investment
returns on assets invested while the fund was non-complying will benefit
from the concessionally taxed superannuation environment.
1.24 Therefore, as an integrity measure, the definition of
`non-concessional contributions' is amended to include any contributions
made to a non-complying fund in previous financial years when the fund
becomes complying. This applies to the extent that those contributions
were made on or after 10 May 2006 and have not previously been counted
under the relevant section. [Schedule 3, item 18, paragraph 292-90(4)(c) of the
ITAA 1997]
Example 1.5
A fund is non-complying in the 2009-10 income year. It becomes
complying in 2010-11. All contributions made on behalf of a member
to that fund during the 2009-10 income year will be included in their
non-concessional contributions cap in the 2010-11 income year.
The same fund becomes non-complying again in 2014-15, before
regaining complying status in 2016-17. All contributions made to that
fund during the period since the fund last lost its complying status
(ie, contributions made in 2014-15 and 2015-16) will be included in
the member's non-concessional contributions cap in the year the fund
regains its complying status (ie, 2016-17).
13
Superannuation Legislation Amendment (Simplification) Bill 2007
Exemptions to the cap -- amounts from the disposal of qualifying small
business assets
1.25 The Tax Laws Amendment (2006 Measures No. 7) Bill 2006
which includes changes to the small business CGT provisions, was
introduced on 7 December 2006. Those amendments are proposed to
apply to CGT events happening in the 2006-07 income year and later
income years. The changes include replacing the concepts of
`stakeholder's control percentage' (within the meaning of
subsection 152-125(3)) and `controlling individual' with the concepts of
`stakeholder's participation percentage' (within the meaning of
subsection 152-125(2)) and `significant individual'. As a result,
provisions relating to exemptions to the cap are amended to take into
account these changes in concepts. [Schedule 2, items 10 to 12,
subsections 292-100(4) and (6) of the ITAA 1997]
1.26 Amendments are also made to ensure the timing rules for
contributions made under the CGT cap operate as intended. [Schedule 3,
items 19 and 20, paragraphs 292-100(2)(b) and 292-100(7)(b) of the ITAA 1997]
Release authorities
1.27 A person will be prohibited from giving a release authority to a
non-complying superannuation provider. That is, a person may only give
a release authority to a complying superannuation provider. A person
must give a release authority relating to excess non-concessional
contributions tax to a complying superannuation provider. This corrects
an anomaly in the main Bill to ensure that the amounts released are from
the concessional superannuation environment, in line with the
Government's intention. [Schedule 3, items 27 to 32 and 48 to 50, sections 292-410
and 292-415 of the ITAA 1997, sections 292-80B and 292-80C of the Income Tax
(Transitional Provisions) Act 1997]
1.28 The Commissioner, however, is still able to present a release
authority to a non-complying superannuation provider in order to have the
monies released from the superannuation system. This is to circumvent
practices that may exist to shelter monies from being compulsorily
released. [Schedule 3, items 31 and 32, subparagraph 292-415(1)(c)(ii) and
paragraph 292-415(2)(b) of the ITAA 1997]
Administration
Shortfall interest charge
1.29 A liability for the shortfall interest charge arises where an
additional amount of excess contributions tax becomes payable as a result
of an amended assessment. The date excess contributions tax is due and
14
Contribution rules
payable is detailed in section 292-385* of the ITAA 1997. [Schedule 1,
items 386 to 391, Division 280, Schedule 1 to the TAA 1953]
General interest charge
1.30 A reference to section 292-390* of the ITAA 1997 (unpaid
excess contributions tax) is included in the index of provisions that deal
with the liability for the general interest charge. [Schedule 1, item 366,
subsection 8AAB(5) of the TAA 1953]
1.31 A general interest charge accrues on unpaid excess contributions
tax and/or shortfall interest charge amounts that remain unpaid after the
due date. [Schedule 1, items 208 to 211, section 292-390 of the ITAA 1997]
Assessments and objections
1.32 The periods for objections against assessments and amended
assessments has been aligned with the four year period for excess
contributions tax assessments. [Schedule 3, items 61 and 62, section 14ZW of the
TAA 1953]
1.33 The wording in the provision relating to amendments on review
has been changed to align with the general income tax regime. [Schedule 3,
item 26, paragraph 292-330(b) of the ITAA 1997]
Collection and recovery
1.34 References to section 292-385* of the ITAA 1997 (excess
contributions tax) are included in the index of tax-related liabilities in the
TAA 1953. [Schedule 1, item 384, subsection 250-10(2), Schedule 1 to the
TAA 1953]
Consequential amendments
CGT small business retirement exemption
1.35 Under Subdivision 152-D of the ITAA 1997, an entity may
choose to disregard a capital gain made on the disposal of active assets of
a small business if they qualify for the small business retirement
exemption. To qualify for the exemption, if the individual is less than
age 55, an ETP that consists of the exempt capital gain (known as the
`CGT exempt amount') must be rolled over to superannuation. From
age 55, the individual may choose to roll-over the ETP to a
superannuation fund, commence an income stream or take it in cash.
15
Superannuation Legislation Amendment (Simplification) Bill 2007
1.36 With the removal of the concept of ETPs, including the ability to
roll-over an ETP to superannuation, it is necessary to provide another
mechanism for the CGT exempt amount to enter the superannuation
system. The amendments contained in Schedule 2 to this Bill (except
items 10 and 11) remove the references to rolling over an ETP in
Subdivision 152-D and apply to CGT events happening in the 2007-08
income year and later income years. They do not change the effect of the
policy and merely replace the ETP mechanism with a requirement that to
qualify for the retirement exemption, the CGT exempt amount must be
contributed as a personal contribution if less than age 55. [Schedule 2,
item 12]
1.37 These amendments are subject to the enactment of amendments
contained in the Tax Laws Amendment (2006 Measures No. 7) Bill 2006.
Individuals
1.38 To qualify for the retirement exemption the following conditions
must be met if the individual is less than age 55 before making the choice:
· the individual must contribute immediately an amount equal
to the CGT exempt amount as mentioned in section 152-315
of the ITAA 1997 to a complying superannuation fund or
RSA [Schedule 2, item 3, paragraphs 152-305(1)(b) and (c) of the
ITAA 1997]; and
· the individual cannot claim a tax deduction on the personal
contribution of the CGT exempt amount. This is consistent
with the current law where the roll-over of an ETP that
consists of the CGT exempt amount is not eligible for a tax
deduction [Schedule 2, item 9, paragraph 290-150(4)(a) of the
ITAA 1997].
1.39 However, if the individual is aged at least 55, they may choose
to contribute the CGT exempt amount as a personal contribution to
superannuation. They may be eligible to claim a tax deduction on the
personal contribution. This is consistent with the current law where an
individual may choose to receive the ETP in cash, make a personal
superannuation contribution and claim a tax deduction (if eligible). If a
deduction is claimed, those contributions will be included in the
concessional contributions cap.
1.40 As the concept of ETP is being removed from
Subdivision 152-D, the provisions that referred to, or were dependent on,
this concept are repealed. [Schedule 2, items 4 and 6, subsections 152-305(1)
(Note 2) and 152-310(4) of the ITAA 1997]
16
Contribution rules
Companies and trusts
1.41 Currently, the CGT exempt component of an ETP is received
tax-free by the CGT concession stakeholder if within the reasonable
benefit limits (RBLs). Therefore, for consistency, the payment of the
CGT exempt amount by the company or trust is `exempt income' in the
hands of the CGT concession stakeholder. The exemption from tax is no
longer subject to RBLs which are abolished in the main Bill. [Schedule 2,
items 1, 5 and 6, section 11-15, paragraph 152-310(2)(a) and subsection 152-310(5) of
the ITAA 1997]
1.42 If the CGT concession stakeholder is less than age 55 before
receiving a payment of the CGT exempt amount, to qualify for the
retirement exemption, the company or trust must make the payment to the
CGT concession stakeholder by contributing it on their behalf to a
complying superannuation fund or RSA. This contribution is not an
employer contribution. It is treated as a personal contribution (ie, the
amount is taken to have been received and contributed by the stakeholder,
even though the funds are contributed directly from the company or trust
to the fund or RSA). [Schedule 2, item 8, subsections 152-325(7) and (8) of the
ITAA 1997]
1.43 If the CGT concession stakeholder is less than age 55 before the
contribution is made the stakeholder cannot claim a tax deduction on the
personal contribution of the CGT exempt amount. This is consistent with
the current law where the roll-over of an ETP that consists of the CGT
exempt amount is not eligible for a tax deduction. [Schedule 2, item 9,
paragraph 290-150(4)(b) of the ITAA 1997]
1.44 If the payment is made to an employee of a company or trust,
the payment must not be of a kind mentioned in section 82-135* of the
ITAA 1997 (disregarding paragraph (fa) of that section). This includes a
payment that is deemed to be a dividend. Therefore, a payment made by a
company or trust to a CGT concession stakeholder who is or was an
employee will not qualify for the retirement exemption if it is considered
a deemed dividend under section 109 of the ITAA 1936. To ensure that
payments made to ongoing employees are subject to section 109, in the
same circumstances as provided for under the Tax Laws Amendment
(2006 Measures No. 7) Bill 2006 amendments, the payment is deemed to
be made in consequence of termination of employment. [Schedule 2, items 2,
7 and 8, paragraph 82-135(fa), subsections 152-325(3A) and (9) of the ITAA 1997]
1.45 For consistency with the treatment under the Tax Laws
Amendment (2006 Measures No. 7) Bill 2006 amendments, a payment
made to a stakeholder who is not an employee is not subject to the
restriction mentioned in the previous paragraph. [Schedule 2, item 7,
subsection 152-325(3A) of the ITAA 1997]
17
Superannuation Legislation Amendment (Simplification) Bill 2007
Government co-contribution
1.46 To attract a government co-contribution the relevant
contribution must be made for the purpose of providing superannuation
benefits for the person (even if the benefits are payable to a dependant
after their death). The wording in this provision is altered for consistency
with changes made to the deduction provisions for personal contributions
in Division 290* of the ITAA 1997. The updated wording is not intended
to modify the operation of the existing law. [Schedule 1, item 341,
paragraph 7(1)(b) of the Superannuation (Government Co-contribution for Low Income
Earners) Act 2003]
1.47 In the main Bill, contributions excluded from attracting
a co-contribution included a benefit transferred from an overseas
superannuation fund. However, this provision was inadvertently
narrowed and excluded transfers from foreign superannuation schemes.
This amendment ensures that an amount transferred from a foreign
superannuation scheme to an Australian superannuation fund will not be a
contribution eligible for a co-contribution. [Schedule 1, items 342 and 343,
paragraph 7(1)(c) of the Superannuation (Government Co-contribution for Low Income
Earners) Act 2003]
1.48 The definitions of a `constitutionally protected fund' and
`complying superannuation fund' in section 56 of the Superannuation
(Government Co-contribution for Low Income Earners) Act 2003 are
updated to refer to the definitions now contained in the Dictionary in the
ITAA 1997. [Schedule 1, items 344 and 345, subsection 995-1(1) of the ITAA 1997]
Income tax deduction rules
Deductions not allowed for payments of the tax
1.49 Payments of excess contributions taxes by taxpayers are not
allowed as a tax deduction. [Schedule 1, item 179, section 26-75 of the ITAA 1997]
Deductions for financing costs on loans to pay superannuation
contributions or life insurance premiums
1.50 Deductions for financing costs connected with a contribution
can only be claimed if a deduction can be claimed for the contribution
under Subdivision 290-B*. [Schedule 1, item 179, section 26-80 of the ITAA 1997]
1.51 Deductions for interest and expenses associated with money
borrowed to pay life insurance premiums can only be claimed if the risk
component of the premium received by the insurer is the entire amount of
the premium and amounts the insurer is liable to pay under the policy
18
Contribution rules
would be included in the person's assessable income if paid. [Schedule 1,
item 179, section 26-85 of the ITAA 1997]
1.52 The wording in these provisions has been altered to improve
readability. This rewording is not intended to modify the operation of the
existing law.
Repeal of old law
1.53 This Bill repeals Subdivisions AA and AB of Division 3 of
Part III of the ITAA 1936 and sections 26-75, 26-80 and 26-85 of the
ITAA 1997 which are rewritten into Division 290* of the ITAA 1997.
These provisions prescribe the rules for claiming deductions for
superannuation contributions made in the 2006-07 income year or earlier
years. [Schedule 1, items 5 and 179, Subdivisions AA and AB of the ITAA 1936 and
sections 26-75, 26-80 and 26-85 of the ITAA 1997]
Example 1.6: Notices for personal contributions
If individuals want to claim deductions for personal contributions
made before the 2007-08 income year, they need to lodge the notice
under the former sections (subsections 82AAT(1A) and (1CB) of the
ITAA 1936). This applies even if the notices are given to the
trustee of the fund or RSA provider in the 2007-08 income year or later
years. The conditions under the former section 82AAT of the
ITAA 1936 for notices on contributions made before the 2007-08
income year continue to apply. Similarly, this also applies to variation
notices.
1.54 This Bill also repeals Subdivision AACA of Division 17 of
Part III of the ITAA 1936 which are rewritten into Division 290* of the
ITAA 1997. This Subdivision prescribes the rebate for superannuation
contributions made on behalf of a spouse in the 2006-07 income year or
earlier years. [Schedule 1, item 7, Subdivision AACA]
1.55 This Bill also repeals section 67AAA of the ITAA 1936 and
rewrites it into Division 26 of the ITAA 1997. The wording in this
provision has been altered to improve readability but is not intended to
modify the operation of the existing law. In addition, the terms `financing
cost' and `risk component' used in the rewritten provisions are defined in
the dictionary in the ITAA 1997. [Schedule 1, items 71, 253 and 256,
section 67AAA of the ITAA 1936 and subsection 995-1(1) of the ITAA 1997]
Updates to cross-references to old law
1.56 Many provisions still operative in the Tax Acts, the Social
Security Act 1991 and Veterans' Entitlements Act 1986 refer to provisions
19
Superannuation Legislation Amendment (Simplification) Bill 2007
repealed by this Bill. As these repealed provisions have been rewritten in
the ITAA 1997, this Bill amends the cross-references with reference to the
new provisions. [Schedule 1, items 48 to 50, 74, 76, 77, 78, 123, 142, 143, 156, 163,
164, 166, 167, 168, 173, 177, 178, 186, 325, 326, 340, 381, 383, 402 and 403,
subsections 24AYA(1), (3) and (7), 73B(1) and (20A), section 90 (definition of
`net income' and `partnership loss'), subsection 262A(4A), subsections 57-40(1) and
57-50(1) in Schedule 2D to the ITAA 1936, sections 10-5, 12-5, 13-1 and 20-5,
paragraphs 26-55(1)(d), 85-10(2)(f) and 85-10(2)(f) (Note) of the ITAA 1997,
paragraph 1075(1)(c) and subparagraph 1185Y(3)(d)(iii) of the Social Security
Act 1991, subsection 5(2) of the Superannuation (Government Co-contribution for Low
Income Earners) Act 2003, section 45-340 in Schedule 1 (method statement, step 1,
paragraph (g)) and section 45-375 in Schedule 1 (method statement, step 1,
paragraph (f)) of the TAA 1953 and paragraph 46C(1)(c) and
subparagraph 49Y(3)(f)(iii) of the Veterans' Entitlements Act 1986]
Application
1.57 The amendments outlined in this chapter apply to the 2007-08
and later income years, except for the amendments that relate to the
contributions caps which apply from the 2007-08 financial year. This is
intended to preserve the operation of repealed provisions outlined in this
chapter for the 2006-07 and previous income years. [Schedule 1, item 406;
Schedule 2, item 12; Schedule 3, item 66]
1.58 The amendments replacing cross-references to the deduction
provisions for the sugarcane farmers' relief schemes in the Social Security
Act 1991 and the Veterans' Entitlements Act 1986 apply in relation to the
2007-08 financial year and later years. [Schedule 1, item 406]
Finding tables
1.59 The following finding tables will assist in comparing the new
law contained in Division 290* of the ITAA 1997 with the current law
contained in Subdivisions AA and AB of Division 3 and
Subdivision AACA of Division 17 of Part III of the ITAA 1936 and
Division 26 of the ITAA 1997.
Finding Table 1 -- New law to current law
New law Current law
ITAA 1997 ITAA 1936
(unless otherwise indicated)
290-5 No equivalent
290-10(1) 82AAR and 26-80(1) of the ITAA 1997
290-10(2) 82AAR and 26-75 of the ITAA 1997
290-60(1) 82AAC(1)(a)
20
Contribution rules
New law Current law
ITAA 1997 ITAA 1936
(unless otherwise indicated)
290-60(2) No equivalent
290-60(3) 82AAC(1)
290-60(4) 82AAC(1A)
290-65(1) 82AAA(2) and 82AAC(1)(c)(iii)
290-65(2) 82AAA(4)
290-70 82AAA(1) employee
290-75(1)(a) 82AAC(1)(b)
290-75(1)(b) 82AAD(1)
290-75(1)(c) 82AAD(2)
290-75(2) 82AAD(3)
290-75(3) 82AAD(4)
290-75(4) 82AAD(4)
290-80(1)(a) 26-80(2)(b) and (4)(b) of the ITAA 1997
290-80(1)(b) 26-80(4)(c) of the ITAA 1997
290-80(2) 26-80(4) of the ITAA 1997
290-85(1)(a) 82AAC(1)(c)(ii)
290-85(1)(b) No equivalent
290-85(2) No equivalent
290-85(3) No equivalent
290-90 82AAA(1) eligible employee
290-95 26-85 of the ITAA 1997
290-100 82AAQ and 82AAQB
290-150(1) 82AAT(1)(b)
290-150(2) No equivalent
290-150(3) 82AAT(1)
290-155 82AAT(1)(c)
290-160(1) 82AAS(1) eligible employment
290-160(2) 82AAS(2) and (3)
290-165(1) 26-80(3)(aa) of the ITAA 1997
290-165(2) 26-80(3)(b) of the ITAA 1997
290-170(1)(a) 82AAT(1)(d), 82AAT(1CA)(c), and
82AAT(1D)
290-170(1)(b) No equivalent
290-170(1)(c) 82AAT(1)(d) and 82AAT(1CA)(c)
21
Superannuation Legislation Amendment (Simplification) Bill 2007
New law Current law
ITAA 1997 ITAA 1936
(unless otherwise indicated)
290-170(2)(a) 82AAT(1)(d) and 82AAT(1CA)(c)
290-170(2)(b) 82AAT(1B)(a) and 82AAT(1CC)(a)
290-170(2)(c)(i) 82AAT(1B)(b) and 82AAT(1CC)(b)
290-170(2)(c)(ii) No equivalent
290-170(2)(c)(iii) No equivalent
290-170(2)(d) 82AAT(1B)(d) and 82AAT(1CC)(d)
290-170(3) 82AAT(1A) and 82AAT(1CB)
290-170(4) 82AAT(1AA)(b) and 82AAT(1CBA)(b)
290-175 82AAT(1) and 82AAT(1CA)
290-180(1) 82AAT(1B)(c) and 82AAT(1CC)(c)
290-180(2) 82AAT(1C) and 82AAT(1CD)
290-180(3) 82AAT(1C) and 82AAT(1CD)
290-180(4) No equivalent
290-230 159T(1) and 159T(1A)
290-235(1) 159T(2)
290-235(2) 159TA
290-240 159TB
26-80(1) 67AAA(1)
26-80(2) 67AAA(3) financing cost
26-85(1) 67AAA(2)
26-85(2) 67AAA(3) risk component
Finding Table 2 -- Current law to new law
Current law New law
ITAA 1936 ITAA 1997
995-1(1) SIS dependant
82AAA(1) definition of
`dependant'
290-90
82AAA(1) definition of `eligible
employee'
82AAA(1) definition of `employee' 290-70
82AAA(2) 290-65(1)
82AAA(4) 290-65(2)
82AAC(1)(a) 290-60(1)
82AAC(1)(b) 290-75(1)(a)
22
Contribution rules
Current law New law
ITAA 1936 ITAA 1997
82AAC(1)(c)(i) 290-60 and 290-90
82AAC(1)(c)(ii) 290-85(1)(a)
82AAC(1)(c)(iii) 290-65(1)
82AAC(1A) 290-60(4)
82AAC(2) Omitted
82AAC(2A) Omitted
82AAC(2B) Omitted
82AAC(2C) Omitted
82AAC(3) definition of `associate' 995-1(1)
Omitted
82AAC(3) definition of `member
spouse'
995-1(1)
82AAC(3) definition of
`non-member spouse'
290-60(4)
82AAC(3) definition of `regulated
superannuation fund'
82AAC(3) definition of `RSA' 995-1(1)
995-1(1)
82AAC(3) definition of
`superannuation interest'
82AAD 290-75(1)(b) and (c), and (2) to (4)
82AADA 290-60(1)
82AAF Omitted
82AAQ 290-100
82AAQA Omitted
82AAQB 290-100
82AAR 290-10
995-1(1)
82AAS(1) definition of `complying
superannuation fund'
Omitted
82AAS(1) definition of
`contributions-splitting ETP'
82AAS(1) definition of `dependant' 995-1(1) SIS dependant
290-160(1)
82AAS(1) definition of `eligible
employment'
Omitted
82AAS(1) definition of `eligible
person'
82AAS(2) 290-160(2)
82AAS(3) 290-160(2)
82AAS(4) Omitted
23
Superannuation Legislation Amendment (Simplification) Bill 2007
Current law New law
ITAA 1936 ITAA 1997
82AAS(5) Omitted
82AAS(6) Omitted
82AAS(7) Omitted
82AAS(8) Omitted
82AAS(9) Omitted
82AAS(10) Omitted
82AAS(11) Omitted
82AAS(12) Omitted
82AAT(1)(a) 290-160(1)
82AAT(1)(b) 290-150(1)
82AAT(1)(c) 290-155
82AAT(1)(d) 290-170(1)(a) and (c)
82AAT(1A) 290-170(3)
82AAT(1AA) 290-170(4)
82AAT(1B)(a) 290-170(2)(b)
82AAT(1B)(b) 290-170(2)(c)(i)
82AAT(1B)(c) 290-180(1)
82AAT(1B)(d) 290-170(2)(d)
82AAT(1BA) 290-170(2)(d)(i)
82AAT(1C) 290-180(2) to (4)
82AAT(1CA)(a) 290-160(1)
82AAT(1CA)(b) 290-150(1)
82AAT(1CA)(c) 290-170(1)(a) and (c)
82AAT(1CB) 290-170(3)
82AAT(1CBA) 290-170(4)
82AAT(1CC)(a) 290-170(2)(b)
82AAT(1CC)(b) 290-170(2)(c)(i)
82AAT(1CC)(c) 290-180(1)
82AAT(1CC)(d) 290-170(2)(d)
82AAT(1CCA) 290-170(2)(d)(i)
82AAT(1CD) 290-180(2) to (4)
82AAT(1D) 290-170(1)(a) and 290-180(2)
82AAT(1E) Omitted
82AAT(1F) Omitted
24
Contribution rules
Current law New law
ITAA 1936 ITAA 1997
82AAT(2) Omitted
82AAT(2A) Omitted
82AAT(2B) Omitted
82AAT(2C) Omitted
82AAT(3) Omitted
82AAT(4) 995-1(1)
159T(1) 290-230(1) to (3)
159T(1A) 290-230(4)
159T(2) 290-235(1)
Omitted
159T(3) definition of `member
spouse'
995-1(1)
159T(3) definition of `non-member
spouse'
290-230(4)
159T(3) definition of `regulated
superannuation fund'
159T(3) definition of `RSA' 995-1(1)
995-1(1)
159T(3) definition of
`superannuation interest'
159TA 290-235(2)
159TB 290-240
995-1(1)
159TC definition of `complying
superannuation fund'
159TC definition of `dependant' 995-1(1) SIS dependant
159TC definition of `eligible 290-230(1) and 290-230(2)(a), (d) and
spouse contributions' (e)
159TC definition of `spouse' 995-1(1) and 290-230(3)
26-75 290-10(2)
26-80(1) 290-10(1)
26-80(2)(a) 290-60
26-80(2)(b) 290-80(1)(a)
26-80(3)(a) 290-150
26-80(3)(aa) 290-165(1)
26-80(3)(b) 290-165(2)
26-80(3)(c) Omitted
26-80(4) 290-80(1)(b) and (2)
26-80(5) Omitted
25
Superannuation Legislation Amendment (Simplification) Bill 2007
Current law New law
ITAA 1936 ITAA 1997
26-80(6) Omitted
26-85 290-95
67AAA(1) 26-80(1)
67AAA(2) 26-85(1)
Omitted
67AAA(3) definition of
`dependant'
26-80(2) and 995-1(1)
67AAA(3) definition of `financing
cost'
26-85(2) and 995-1(1)
67AAA(3) definition of `risk
component'
26
Chapter 2
Taxation of benefit payments and
employment termination payments
Outline of chapter
2.1 This chapter makes some minor additions to the law to clarify or
complement the operation of the superannuation benefit taxation
provisions in the Tax Laws Amendment (Simplified Superannuation)
Bill 2006 (main Bill). For example, tax withholding and payment
summary requirements are clarified, now that superannuation benefits
paid from a taxed source to a person aged 60 or over will be tax-free.
2.2 It also covers the abolition of the old superannuation benefit
taxation law, including reasonable benefit limits (RBLs) and the concept
of eligible termination payments (ETPs).
2.3 Updates to references in other Acts to repealed superannuation
benefit taxation law are also covered, to clarify policy intent going
forward.
Additions to the law created by the main Bill
Withholding arrangements
2.4 Superannuation funds are no longer required to withhold tax
from superannuation benefits paid from a taxed source to a person
aged 60 or over, or provide payment summaries to these individuals. The
withholding and payment summary requirements for other wholly not
assessable not exempt (ie, tax-free) payments are also removed to
minimise compliance costs. [Schedule 1, item 373; Schedule 3, items 63 to 65]
2.5 In addition, the child support legislation is amended to ensure
that these amendments do not result in any change to the sources of funds
from which child support can be collected. [Schedule 3, items 4 to 7]
27
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
Cashing of death benefits
2.6 Under Simplified Superannuation, from 1 July 2007,
superannuation pensions are no longer able to revert to a non-dependant
on death; rather, death benefit payments to non-dependants must be made
as lump sums. The governing rules of a superannuation fund must not
allow the benefits of a deceased member to be cashed otherwise than in
accordance with the regulations. The regulations override and invalidate
the governing rules of a fund to the extent of any inconsistency with the
regulations. [Schedule 1, items 279 and 361]
Superannuation guarantee opt out provisions
2.7 Currently, employees with accumulated superannuation
entitlements in excess of the pension RBL may elect not to receive
superannuation contributions from their employers. As RBLs are
abolished, from 1 July 2007, these elections will no longer be able to be
made. As these elections were irrevocable, existing elections will remain
in force. [Schedule 1, items 349 and 350]
Superannuation and bankruptcy
2.8 Currently, under the Bankruptcy Act 1966, a bankrupt's interest
in a superannuation fund up to the bankrupt's pension RBL is protected
from being divisible amongst creditors. A bankrupt's superannuation
interest in excess of the pension RBL automatically vests in the
bankruptcy trustee.
2.9 The amendments remove references to RBLs from the
Bankruptcy Act 1966 to ensure consistency with the new Simplified
Superannuation rules which abolish RBLs with effect from 1 July 2007.
This means that, from 1 July 2007, a bankrupt's entire interest in a
superannuation fund is protected from being divisible amongst creditors.
[Schedule 3, item 1]
2.10 Related provisions in the Bankruptcy Act 1966 that set out
methods of apportionment and valuation of the interest of the bankrupt in
the fund, for the purposes of the vesting provisions, are also removed.
[Schedule 3, item 2]
2.11 The above protection provided to superannuation interests is
subject to new provisions contained in the Bankruptcy Legislation
Amendment (Superannuation Contributions) Bill 2006, introduced into
Parliament on 6 December 2006. The Bankruptcy Bill amends the
Bankruptcy Act 1966 to provide that bankruptcy trustees can recover
superannuation contributions made on or after 28 July 2006 with the
28
Taxation of benefit payments and employment termination payments
intention to defeat creditors. For further details, see the explanatory
memorandum to the Bankruptcy Legislation Amendment (Superannuation
Contributions) Bill 2006.
2.12 The amendments in this Bill take into account changes to the
wording of provisions that will be made by the Bankruptcy Bill and will
apply from 1 July 2007. [Schedule 3, items 1 to 3]
2.13 In addition, amendments in this Bill clarify that amounts paid
out of a superannuation fund pursuant to provisions in the Bankruptcy Bill
are not subject to further taxation. [Schedule 3, item 37, paragraph 307-10(ab) of
the Income Tax Assessment Act 1997]
Tax rates
2.14 Under Simplified Superannuation, amounts received as
superannuation benefits in excess of the untaxed plan cap and amounts
received as employment termination payments in excess of the
employment termination payment cap, are taxed at the top marginal tax
rate (plus the Medicare levy) to ensure the tax concessions provided to
superannuation are targeted appropriately.
2.15 Amounts to be taxed at the top marginal tax rate (plus the
Medicare levy) are classed as special types of taxable income -- the
superannuation remainder of taxable income and the employment
termination remainder of taxable income. [Schedule 1, items 3, 6, 7, 9, 14, 16,
17, 20, 22 to 24, 33 and 34 of the Income Tax Rates Amendment (Superannuation)
Bill 2007]
Property transfers
2.16 A superannuation lump sum can be (or include) a transfer of
property. If the superannuation lump sum is a transfer of property, the
value of the benefit is the market value of the property. The market value
is reduced by the value of any consideration given for the transfer of the
property. The definition of `market value' is contained in
subsection 995-1(1) of the Income Tax Assessment Act 1997
(ITAA 1997). [Schedule 3, item 10]
2.17 The provisions ensuring that an employment termination
payment can be a transfer of property are clarified to ensure that all, or
part, of the payment can be a transfer of property. [Schedule 3, items 8 and 9]
29
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
Other amendments
2.18 A number of other amendments have been made to provisions
introduced by the main Bill to clarify the provisions and to better reflect
the policy intent. These amendments:
· restrict the ability to treat contributions as untaxed benefits, if
they are paid out within a year, to public sector
superannuation schemes in existence before
5 September 2006 [Schedule 3, items 38 to 41];
· ensure the $1 million limit on the amount of a transitional
employment termination payment that can be rolled over into
superannuation is reduced by the taxable component of every
transitional employment termination payment made, rather
than the entire amount of the payment [Schedule 1, item 269,
section 306-10 of the Income Tax (Transitional Provisions) Act 1997];
· clarify references to an inability to perform normal
employment duties for the purposes of temporary disability
payments to ensure these payments can be made to the
self-employed [Schedule 3, item 36];
· ensure that roll-overs within the same superannuation plan
are not counted against the untaxed plan cap [Schedule 1,
item 225; Schedule 3, item 44];
· apply the new pension arrangements to recipients of an
income stream from a taxed source who are already over the
age of 60 as at 1 July 2007 [Schedule 1, item 270];
· clarify the method for calculating the tax-free component of
an income stream that is commuted [Schedule 1, item 271];
· recognise that income streams which commenced before
1 July 1994 already receive pre-July 1983 amounts tax-free
[Schedule 1, item 272];
· clarify the method statement determining what portion of the
taxable component of a lump sum payment from a public
sector superannuation scheme is an element untaxed in the
fund [Schedule 3, items 42 and 43]; and
30
Taxation of benefit payments and employment termination payments
· clarify the note to subsection 305-65 of the ITAA 1997 as the
concept of a vested amount is not relevant to lump sums
received within six months after Australian residency
[Schedule 1, item 224].
2.19 The remaining provisions introduced by the main Bill ensure
that the correct tax treatment applies to a range of payments. Specifically:
· benefits (including non-cash benefits) received from
superannuation funds in breach of statutory requirements are
taxed at marginal rates [Schedule 3, item 35];
· amounts released pursuant to transitional release authorities
are tax-free up to the amount specified in the release
authority and assessable income if above that amount
[Schedule 1, items 219 and 269, section 304-15 of the Income Tax
(Transitional Provisions) Act 1997];
· foreign and Australian superannuation arrangements which
have certain grandfathered arrangements applied under
current law maintain their existing taxation treatment
[Schedule 1, items 41, 51 to 56, 220, 221, 267 and 268; Schedule 3,
item 37, paragraph 307-10(a) of the ITAA 1997];
· amounts transferred from foreign superannuation schemes
continue to be taxed in the same way as if they were paid
from a foreign superannuation fund [Schedule 1, items 222 and
223];
· employee share scheme payments are excluded from being
employment termination payments [Schedule 1, items 184
and 185]; and
· the deemed dividend exclusion is expanded so that amounts
that are a deemed dividend under any provision of the
Income Tax Assessment Act 1936 (ITAA 1936) or the
ITAA 1997 are excluded from being an employment
termination payment [Schedule 1, item 183].
Consequential amendments
Repeals
2.20 The existing provisions imposing tax on superannuation
benefits, including RBLs and the previous rebate for superannuation
31
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
pensions, are repealed. This removes significant complexity from the
taxation arrangements that apply to superannuation benefits. [Schedule 1,
items 2 to 4, 6, 7, 181 and 405]
2.21 The existing provisions imposing tax on employment
termination payments are also repealed. The tax treatment of these
payments is currently linked to the tax treatment of superannuation lump
sums. [Schedule 1, items 2 to 4, 6 and 7]
2.22 In both cases, existing provisions which are retained in the new
regime are rewritten in a simplified and modernised form to improve the
readability of the law.
Changes to cross-references
Pensions and annuities
2.23 Currently, section 27H of the ITAA 1936 includes amounts of
annuities or superannuation pensions in assessable income. From
1 July 2007 revised taxation arrangements apply to Australian-sourced
superannuation income streams, but section 27H continues to apply to
other income streams (including foreign sourced benefits and
non-superannuation annuities). There is no intention to modify the
operation of this provision for foreign-sourced benefits or
non-superannuation annuities. [Schedule 1, items 59 to 64, 226 and 227]
2.24 Definitions for `residual capital value', `undeducted purchase
price' and `purchase price' are inserted into section 27H. These
definitions are based on the existing definitions in subsection 27A(1) of
the ITAA 1936 which are repealed. [Schedule 1, items 65 to 68]
2.25 References to the taxation treatment, or definition, of pensions
and annuities are updated to reflect the new provisions in the ITAA 1997
and the updated provisions in section 27H of the ITAA 1936. [Schedule 1,
items 10 to 12, 20, 90, 92 to 97, 239, 241, 247, 248 and 367 to 369]
Eligible termination payments (ETPs)
2.26 The previous ETP concept covered lump sum payments both
from superannuation entities and those arising from employment
arrangements. The previous concept is now covered by two new concepts
-- a `superannuation lump sum', which covers such payments from
superannuation entities, and an `employment termination payment', which
refers to those instances where a payment is made, otherwise than from a
superannuation fund, in consequence of the termination of employment.
32
Taxation of benefit payments and employment termination payments
2.27 In some instances references to ETP are updated to refer to both
new concepts. [Schedule 1, items 20, 37, 81 to 83, 91, 92, 96, 144, 176, 180, 182, 246,
249, 367 to 369 and 377]
2.28 Where the application of the law is clearly intended to only
apply to certain types of `eligible termination payment', only the relevant
term is substituted. [Schedule 1, items 17 and 97]
2.29 As well as updating references to ETPs, the provisions ensuring
capital gains tax (CGT) does not apply to superannuation lump sums and
employment termination payments, are consolidated into the CGT
provisions of the ITAA 1997. [Schedule 1, items 194 and 197]
2.30 In addition, references to `rolled over amounts', `retained
amounts' and other similar terms are updated to reflect the new
arrangements under which employment termination payments can not be
rolled over into superannuation (with a limited exception for certain
entitlements as at 9 May 2006). The existing meaning of `rolled over
amounts' is maintained for provisions which refer to events occurring
prior to 1 July 2007. [Schedule 1, items 237, 238, 240, 257, 269, 351 and 375;
Schedule 3, item 51]
Terminology describing other payments
2.31 Some defined terms were omitted in the rewrite of the
superannuation provisions into the ITAA 1997, with the substance of the
defined term instead spelled out in the operative rule. The affected terms
are `eligible resident non-complying superannuation fund', `eligible
non-resident non-complying superannuation fund', `exempt non-resident
foreign termination payment' and `exempt resident foreign termination
payment'. [Schedule 1, items 20, 43 to 46, 135 and 136]
2.32 From 1 July 2007, the `upper limit' calculated under
section 159SG of the ITAA 1936 ceases to have effect. This threshold set
the amount of a payment taxed at zero per cent where the recipient of an
ETP was aged 55 or over. Where provisions not related to the taxation of
lump sums:
· relied on this reference to provide them with a value, the
reference has been updated to the relevant new concept, the
`low rate cap amount' [Schedule 1, items 13 to 15]; or
· modified the treatment of income which is taxed at
zero per cent, the reference has been updated to reflect
income to which this tax arrangement applies [Schedule 1,
items 9 and 122].
33
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
2.33 Sections 26AC and 26AD of the ITAA 1936 dealt with the tax
treatment of (and relevant definitions associated with) payments made in
lieu of unused annual leave and unused long service on the termination of
employment. References to these sections, or to the definitions of these
types of leave, are updated to capture the relevant new provisions in the
ITAA 1997. [Schedule 1, items 20, 73, 75, 80, 176, 180, 182, 246, 249, 346, 367 to
369 and 377]
2.34 Whilst the superannuation contributions surcharge has been
abolished, members with surcharge debt accounts and members of
untaxed superannuation schemes are liable for superannuation
contributions surcharge when their superannuation benefit is paid. As a
result, references to the new term `superannuation benefit' are inserted
into the Superannuation Contributions Tax (Assessment and Collection)
Act 1997 and the Superannuation Contributions Tax (Members of
Constitutionally Protected Superannuation Funds) Assessment and
Collection Act 1997. [Schedule 1, items 328 to 338]
Social security and Veterans' Affairs consequential amendments
2.35 A number of definitions in the Social Security Act 1991 and the
Veterans' Entitlements Act 1986 are updated. [Schedule 1, items 289, 290, 395,
396 and 401]
2.36 The definition of `residual capital value' is replaced. The
residual capital value of an income stream is defined as the capital
amount payable on the termination of the income stream. An account
based income stream will not have a residual capital value. [Schedule 1,
items 291, 293, 397 and 399]
2.37 The definition of `superannuation fund' is updated to ensure
that, for income support purposes, the concessional treatment of assets
held in superannuation funds is restricted to Australian superannuation
funds. In particular, the new definition ensures that a superannuation
pension from a `foreign superannuation fund' (formerly a `non-resident
superannuation fund') is assessable income under these Acts; but that no
deductions are allowed. A corresponding amendment is also made to the
definition of superannuation fund in the Veterans' Entitlements Act 1986.
[Schedule 1, items 292 and 398]
2.38 Both the general definition of `liquid assets', and a similar
definition for the purposes of the Financial hardship (Carer Payment), are
updated to ensure that amounts which would otherwise be liquid assets are
not liquid assets when they are either a roll-over superannuation benefit
(within the meaning of the ITAA 1997), a superannuation lump sum that
is a contributions-splitting superannuation payment or a directed
34
Taxation of benefit payments and employment termination payments
termination payment (within the meaning of the Income Tax (Transitional
Provisions) Act 1997). [Schedule 1, items 294 to 296]
2.39 In addition to updating definitions, the income maintenance
period provisions contained in the various rate calculators are updated.
2.40 For certain social security payments, where a person receives a
lump sum termination payment the amount is apportioned over the period
it represents and is maintained as ordinary income for that period.
Currently, where a person rolls over (as provided in the ITAA 1936) a
termination payment into a certain type of fund or annuity, the amount is
not maintained as ordinary income. These arrangements are maintained
for directed termination payments (within the meaning of the Income Tax
(Transitional Provisions) Act 1997).
2.41 Amendments are made to payments which are currently subject
to the income maintenance period provisions: disability support pension
(except for people who are permanently blind), newstart allowance, youth
allowance, austudy, widow allowance, sickness allowance, partner
allowance, mature age allowance and parenting payment. The
amendments commence from 1 July 2007. It is not intended that any
amount rolled over under the old rules prior to 1 July 2007 should be
subject to the new rules and therefore counted as ordinary income upon
commencement of the amendments. [Schedule 1, items 297 to 324]
Other consequential amendments
2.42 Other consequential amendments:
· update references to the superannuation and employment
termination taxation provisions in the ITAA 1997 [Schedule 1,
items 42, 47, 103, 105, 106, 140, 149, 244, 245 and 376];
· insert or update definitions of commonly used terms in
section 6 of the ITAA 1936 and section 995-1 of the
ITAA 1997 [Schedule 1, items 26, 35, 36, 250, 251, 259 and 260];
· update references to departing Australia superannuation
payments or their taxation treatment [Schedule 1, items 38, 112,
113, 137 to 139, 370 to 372 and 374; Schedule 1, items 1 and 2 of the
Income Tax Amendment Bill 2007];
· update or omit a range of other definitions throughout a
number of Acts [Schedule 1, items 145, 146 and 284 to 286];
· update guide material in the ITAA 1997 [Schedule 1, items 151,
152, 155 to 158, 160, 161, 169 to 173 and 175]; and
35
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
· technical corrections are made to improve the wording of
some provisions in the main Bill and to remove incorrect
references to employment termination payments in the
definition of an `early retirement scheme payment'
[Schedule 4, items 1, 2, 4 to 6 and 9 to 11].
Application provisions
2.43 The amendments outlined in this chapter apply from on or after
1 July 2007, except for the social security and Veterans' Affairs
amendments in paragraphs 2.35 to 2.38 (first four only) which apply from
the 2007-08 and later income years. [Schedule 1, item 406; Schedule 3, item 66;
Schedule 1, item 35 of the Income Tax Rates Amendment (Superannuation) Bill 2007]
36
Chapter 3
Taxation of superannuation entities
Outline of chapter
3.1 This chapter makes minor additions to the law to clarify or
complement the operation of the superannuation entity taxation provisions
in the Tax Laws Amendment (Simplified Superannuation) Bill 2006
(main Bill). For example, it makes changes to ensure the current
arrangements for foreign superannuation schemes are maintained and
clarifies when a superannuation fund's central management and control
will be considered ordinarily in Australia.
3.2 It also outlines minor additions to the law to support the
increased quotation of tax file numbers (TFNs) to superannuation funds
and retirement savings accounts (RSA) and the no-TFN contributions tax.
3.3 The old superannuation entity provisions in Part IX of the
Income Tax Assessment Act 1936 (ITAA 1936) are repealed. Updates to
references in other Acts to these old provisions are also outlined to clarify
the policy intent going forward.
Additions to the law created by the main Bill
Entity taxation
Ensuring consistent treatment of employees and the self-employed
3.4 To clarify the provisions, and better reflect the policy intent,
amendments are made to sections 295-460*2 and 295-470* of the Income
Tax Assessment Act 1997 (ITAA 1997) to ensure these provisions cover
the self-employed. [Schedule 1, items 217 and 218]
2
Asterisk * refers to sections of the ITAA 1997 that are to be created by the main Bill.
37
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax (Former Complying Superannuation Funds) Amendment Bill 2007
Income Tax (Former Non-resident Superannuation Funds) Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
Contributions made by certain trustees
3.5 The rewritten provisions in Division 295* of the ITAA 1997 do
not exclude certain contributions from superannuation entities' assessable
income, where they are made for the benefit of someone else by the
trustee of a complying superannuation fund, complying approved
deposit fund, pooled superannuation trust or exempt life assurance fund.
This exclusion was previously in Part IX of the ITAA 1936
(sub-subparagraphs 274(1)(a)(i)(A) and (B)), so a provision to this effect
is inserted into Subdivision 295-C* of the ITAA 1997. [Schedule 1,
item 215]
Amounts transferred from foreign superannuation schemes
3.6 Rewritten provisions in section 295-200* of the ITAA 1997,
setting out the taxation arrangements applying to amounts transferred to
certain superannuation funds from foreign superannuation funds have
been inadvertently narrowed by excluding foreign superannuation
schemes. Amendments are made to ensure that amounts transferred from
foreign superannuation schemes continue to be captured in the assessable
income of certain entities in the same way as if they were paid from a
foreign superannuation fund. [Schedule 1, item 216]
Australian superannuation fund: the `ordinarily' requirement
3.7 Subsection 295-95(2)* of the ITAA 1997 defines `Australian
superannuation fund', which replaces the definition of `resident
superannuation fund' in section 6E of the ITAA 1936. Unlike the
definition of `resident superannuation fund', the new `Australian
superannuation fund' does not have a specific `two-year temporary
absence rule', but instead has a more general requirement that the central
management and control of the fund `ordinarily' be in Australia.
3.8 To provide certainty to trustees of superannuation funds,
especially trustees of self-managed superannuation funds (for whom the
old `two-year temporary absence rule' was mainly directed), a provision is
inserted into the definition of `Australian superannuation fund', which
explains that a superannuation fund is considered ordinarily in Australia
even if the central management and control is temporarily outside
Australia, where it is for a period of less than two years. [Schedule 1,
item 214]
38
Taxation of superannuation entities
Other amendments
3.9 Other amendments are made to provisions introduced by the
main Bill to clarify provisions and better reflect the policy intent. These
amendments restrict the ability of trustees to choose to treat certain
contributions as untaxed benefits (and exclude them from assessable
income of the fund) if they are paid out of the fund within a year, to public
sector superannuation schemes in existence before 5 September 2006.
[Schedule 3, items 33, 34 and 38 to 41]
Transitional provisions: notices given and acknowledged under former
sections
3.10 The assessable income of complying superannuation funds and
RSA providers includes contributions covered by valid and acknowledged
notices under section 290-170* of the ITAA 1997. Section 290-170*
permits a person who is eligible for a deduction under section 290-150* of
the ITAA 1997 (for contributions they have made to a complying
superannuation fund or RSA provider) to claim a deduction where they
have given the trustee a notice specifying the amount of the contributions
they intend to claim as a deduction, and where they have received an
acknowledgement of the notice from the trustee.
3.11 The rewritten provision of Part IX of the ITAA 1936
(subsection 295-190(1)* of the ITAA 1997, item 1 in the table) that
operates for the 2007-08 income year and future income years does not
include in assessable income of complying superannuation funds and RSA
providers, contributions covered by valid and acknowledged notices under
the former sections (subsections 82AAT(1A) and (1CB) of the
ITAA 1936).
3.12 If individuals want to claim deductions for personal
contributions made before the 2007-08 income year, they need to lodge
the notice under the former sections (subsections 82AAT(1A) and (1CB)
of the ITAA 1936) as these are the subsections that still apply for
contributions made before the 2007-08 income years (even if the notices
are given to the trustee of the fund or RSA provider after 1 July 2007). A
transitional provision deems valid notices given under these former
sections to have the same effect, after 1 July 2007, as if they were notices
given under the new rewritten section. This will ensure these
contributions are included in assessable income of the fund or RSA.
[Schedule 1, item 266, subsection 295-190(1)]
3.13 The conditions under the former section 82AAT of the
ITAA 1936 for notices on contributions made before the 2007-08 income
year continue to apply.
39
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax (Former Complying Superannuation Funds) Amendment Bill 2007
Income Tax (Former Non-resident Superannuation Funds) Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
3.14 Amounts covered by a section 290-170* notice in the
ITAA 1997 (or subsection 82AAT(1A) or (1CB) notice in the
ITAA 1936), can be reduced by giving the trustee a variation notice. This
allows a member whose claim for a deduction has been wholly or partially
disallowed to notify the fund or RSA provider, so they can adjust their
assessable income accordingly. A transitional provision is inserted, which
deems variation notices made under the former sections to have effect,
after 1 July 2007, as if they were notices under section 290-180* of the
ITAA 1997. This ensures the correct amount is included in the assessable
income of the fund or RSA. [Schedule 1, item 266, subsection 295-190(2)]
Transitional provisions: elections made under former sections
3.15 A transitional provision is needed to cover situations where a
trustee makes an election in an income year prior to the 2007-08 income
year under a Part IX provision in the ITAA 1936, which is taken to be an
election for future income years. Since all the provisions of Part IX of the
ITAA 1936 are repealed and rewritten, an election made under such a
provision (eg, subsection 279(4)), where such an election is supposed to
have continuing application, is deemed to continue to have effect as if
made under Division 295* of the ITAA 1997. [Schedule 1, item 266,
Subdivision 295-G]
Transitional provisions: rewritten provisions with limited continued
application
3.16 Provisions in Part IX of the ITAA 1997 that were not rewritten
into the ITAA 1997 due to their limited continued application are
rewritten into the Income Tax (Transitional Provisions) Act 1997.
[Schedule 1, item 266, Subdivisions 295-B and 295-F]
3.17 The wording in these provisions is changed to improve
readability. This rewording is not intended to modify the operation of the
existing law. The Commissioner of Taxation's (Commissioner) discretion
is replaced with an objective test. This change is in line with the Review
of Self Assessment which recommended that all discretions which go to
the determination of a taxpayer's liability be reviewed, and where
practicable replaced with objective tests. This change is not intended to
change the tax outcome. [Schedule 1, item 266, Subdivision 295-F,
subsection 295-390(6)]
40
Taxation of superannuation entities
TFN quotation for superannuation purposes
TFN declarations
3.18 Section 202DHA* of the ITAA 1997 provides that when an
individual makes a TFN declaration to their payer (their employer) they
are also authorising their employer to provide their TFN to the
superannuation provider to which their employer is making contributions.
This section is amended to ensure it is not retrospective in its application.
3.19 When an individual makes a TFN declaration to their payer
(their employer) on or after 1 July 2007 they are also authorising their
employer to provide their TFN to the superannuation provider, or RSA
provider to which their employer is making contributions. [Schedule 1,
items 117 to 120]
Quotation of TFNs in relation to RSAs
3.20 The main Bill amends section 6 of the Superannuation Industry
(Supervision) Act 1993 to allow the Commissioner to regulate the
quotation of an individual's TFN by their payer (their employer) and the
incorrect quotation of TFNs. Section 3 is similarly amended to allow the
Commissioner to regulate a payer's legal responsibilities to quote TFNs to
RSA providers.
3.21 The Commissioner has the general administration of Division 2
in Part 11 of the Retirement Savings Accounts Act 1997, which relates to
the quotation of a holder's TFN and Division 4A of Part 11 of that Act,
which relates to the incorrect quotation of TFNs. [Schedule 1, item 278]
3.22 The Australian Prudential Regulation Authority (APRA) has the
general administration of Part 11 of the Retirement Savings Accounts
Act 1997, except Divisions 2 and 4A. [Schedule 1, item 277]
3.23 An employee can quote their TFN to their payer in connection
with the operation or the possible future operation of the Retirement
Savings Accounts Act 1997 and other `Superannuation Acts' on or after
1 July 2007 in connection with the operation of Division 3 of Part VA of
the ITAA 1936. If the conditions in section 133 of the Retirement Savings
Accounts Act 1997 are satisfied the payer must then inform the trustee of
the entity to which they make contributions, of the employee's TFN.
[Schedule 1, items 280 and 281]
3.24 An individual is taken to have quoted their TFN to another
person if the individual informs the other person of the TFN in a manner
approved by APRA, in the specified approved form, or the individual is
taken to have quoted their TFN in relation to the Retirement Savings
41
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax (Former Complying Superannuation Funds) Amendment Bill 2007
Income Tax (Former Non-resident Superannuation Funds) Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
Accounts Act 1997 and the `Superannuation Acts' under any of the
provisions in Division 4 of the Retirement Savings Accounts Act 1997.
[Schedule 1, item 282]
Incorrect quotation of a TFN
3.25 The main Bill inserts Division 3A into the Superannuation
Industry (Supervision) Act 1993 which relates to the incorrect quotation of
a TFN. Equivalent provisions are inserted into the Retirement Savings
Accounts Act 1997 concerning the incorrect quotation of a TFN to a RSA
provider. [Schedule 1, item 283]
Interest on the no-TFN income tax offset of RSA providers
3.26 To ensure that RSA providers are treated consistently with other
superannuation providers, interest payable under the Taxation (Interest on
Overpayments and Early Payments) Act 1983 includes that interest is
payable where an employer has failed to comply with the requirements set
out in section 133 of the Retirement Savings Accounts Act 1997.
[Schedule 1, item 394]
RSA providers that are life insurance companies
3.27 Life insurance companies that are RSA providers are taxed
under Division 320 of the ITAA 1997 in a broadly comparable manner to
other entities that derive similar kinds of income.
3.28 To ensure that RSA providers that are life insurance companies
are treated consistently with other RSA providers they are:
· taxed under Division 320 of the ITAA 1997 except to the
extent that section 320-155 provides they are taxed under
Subdivision 295-I* in relation to no-TFN contributions
income and Subdivision 295-J* in relation to the no-TFN
income tax offset of that Act [Schedule 1, items 212 and 213];
· liable to pay tax on no-TFN contributions income [Schedule 1,
items 228 and 229];
· subject to Subdivisions 295-I* and 295-J* of the ITAA 1997
[Schedule 1 , item 233]; and
· the rate of tax on their no-TFN contributions income is
calculated at the top marginal tax rate (column 2 in the table
in Part I of Schedule 7 to the Income Tax Rates Act 1986)
42
Taxation of superannuation entities
plus the Medicare levy. The rate of tax generally payable on
contributions for a life insurance company that is an RSA
provider (set out in paragraph 23(4A)(ba) of that Act) is then
subtracted from this rate [Schedule 1, items 31 and 32 of the Income
Tax Rates Amendment (Superannuation) Bill 2007].
Consequential changes
3.29 The rewrite of Part IX of the ITAA 1936 into Division 295* in
the ITAA 1997 as part of Simplified Superannuation means that Part IX is
no longer needed and is repealed. [Schedule 1, item 8]
3.30 The rewrite and repeal of Part IX means references to the
sections in that Part, within the ITAA 1936, the ITAA 1997 and other
Acts (including, the Social Security Act 1991 and the Veterans'
Entitlement Act 1986) are updated to refer to the new corresponding
provisions in Division 295* of the ITAA 1997. [Schedule 1, items 18, 21, 39,
40, 57, 58, 72, 79, 88, 89, 101, 102, 108 to 111, 115, 116, 121, 148, 190, 191, 193, 195,
196, 198, 199, 203, 230 to 232, 234, 252, 273, 274, 276; items 1 and 2 of the Income Tax
(Former Complying Superannuation Funds) Amendment Bill 2007; item 1 of the
Income Tax (Former Non-resident Superannuation Funds) Amendment Bill 2007;
Schedule 1, items 5, 6 and 8 of the Income Tax Amendment Bill 2007; items 1, 2, 4, 5,
11, 12, 15 and 18 of the Income Tax Rates Amendment (Superannuation) Bill 2007]
3.31 In updating some cross-references to Part IX of the ITAA 1936,
especially those used for defining terms in other Acts, the actual substance
of the definition from Part IX is included in the provision rather than
referring to the new cross-reference in Division 295* of the ITAA 1997
[Schedule 1, item 353]. In the updating process, a few inoperative provisions
in other Acts were identified. These provisions are repealed [Schedule 1,
items 362 and 363].
3.32 In rewriting Part IX of the ITAA 1936 and implementing other
parts of Simplified Superannuation, various definitions are repealed,
amended, or inserted into the Dictionaries in the ITAA 1936 and the
ITAA 1997. Some definitions from Part IX of the ITAA 1936 are
relocated within that Act, others are updated to reflect new terminology in
the ITAA 1997. For instance, `non-resident superannuation fund' has
been changed to `foreign superannuation fund' and `resident
superannuation fund' has changed to `Australian superannuation fund', as
these terms are more up-to-date and consistent with the terminology
currently used in the ITAA 1997 for residency tests. Where new terms or
concepts replace old terms or concepts, these are updated throughout both
the ITAA 1936 and the ITAA 1997 accordingly. [Schedule 1, items 1, 19,
23 to 25, 29 to 33, 99, 109 to 111, 128 to 133, 148, 189, 192, 195, 221, 232, 234 to 236,
242, 243, 252 and 258]
43
Superannuation Legislation Amendment (Simplification) Bill 2007
Income Tax Amendment Bill 2007
Income Tax (Former Complying Superannuation Funds) Amendment Bill 2007
Income Tax (Former Non-resident Superannuation Funds) Amendment Bill 2007
Income Tax Rates Amendment (Superannuation) Bill 2007
3.33 The term `foreign superannuation fund' already exists in the
ITAA 1936 and the ITAA 1997 to a limited extent. Therefore this term is
replaced with the term `superannuation fund for foreign residents' to
enable the term `foreign superannuation fund' to be used to describe
`non-resident superannuation funds' (currently in section 6E of the
ITAA 1936). The term `superannuation fund for foreign residents' also
more accurately describes the more restricted funds, as these are
essentially foreign superannuation funds with foreign members.
[Schedule 1, items 27, 34, 100 and 147]
3.34 Various other Acts also use terms which refer to definitions in
Part IX of the ITAA 1936 that have been repealed or amended in the
rewrite. These terms are also updated accordingly. [Schedule 1, items 275,
344, 345, 352 and 353; item 1 of the Income Tax (Former Non-resident Superannuation
Funds) Amendment Bill 2007; Schedule 1, items 4 and 7 of the Income Tax
Amendment Bill 2007; items 8, 10, 13, 19, 21, 25 to 30 of the Income Tax Rates
Amendment (Superannuation) Bill 2007]
3.35 In the rewrite some defined terms were omitted and the
substance of the defined term was outlined in the operative rule. One
example is the term `eligible entity'. This term is no longer used in new
Division 295* of the ITAA 1997, the rest of that Act, or other Acts,
instead the types of entities that were previously listed in the definition of
`eligible entity' are listed in the operative provisions (ie, `eligible entity'
is replaced with `complying and non-complying approved deposit fund,
complying and non-complying superannuation fund and pooled
superannuation trust'). [Schedule 1, items 22, 28, 69, 70, 84 to 87, 98, 104, 107, 124
to 127, 134, 141, 200, 201, 202, 204; Schedule 1, item 3 of the Income Tax Amendment
Bill 2007; items 4 and 5 of the Income Tax Amendment (Superannuation) Bill 2007]
Unlimited amendment periods
3.36 Unlimited amendment periods for amending assessments that
were contained in Part IX of the ITAA 1936, are centralised into the table
listing all unlimited amendment periods in subsection 170(10AA) of the
ITAA 1936. [Schedule 1, item 114]
Updates to guide material
3.37 Guide material in the ITAA 1997 is updated to refer to the new
provisions of the ITAA 1997, including those concerning no-TFN
contributions tax. [Schedule 1, items 150, 153, 154, 156, 159, 165, 173 and 174]
44
Taxation of superannuation entities
Application provisions
3.38 The amendments outlined in this chapter apply to the 2007-08
and later income years. This is intended to preserve the operation of
repealed provisions outlined in this chapter for the 2006-07 and previous
income years. [Schedule 1, item 406; item 2 of the Income Tax (Former
Non-resident Superannuation Funds) Amendment Bill 2007; item 3 of the Income Tax
(Former Complying Superannuation Funds) Amendment Bill 2007; item 9 of the
Income Tax Amendment Bill 2007; item 35 of the Income Tax Rates Amendment
(Superannuation) Bill 2007]
45
Chapter 4
Other changes
Outline of chapter
4.1 This chapter outlines changes to assist in establishing a single
access point for lost and unclaimed superannuation and a nationalised
claims process.
4.2 It also outlines a new declaration that aims to ensure
self-managed superannuation fund trustees, and directors of corporate
trustees, understand their obligations and responsibilities as trustees under
the superannuation laws and outlines some consequential changes to
clarify collection arrangements for the self-managed superannuation fund
supervisory levy.
4.3 Amendments to superannuation fund reporting requirements and
indexation provisions and amendments to align the superannuation
guarantee (SG) arrangements with provisions in bilateral social security
agreements are also covered.
Unclaimed money
4.4 Sections 16 and 17 of the Superannuation (Unclaimed Money
and Lost Members) Act 1999 currently require superannuation providers
to give a half-yearly statement of unclaimed (superannuation) money to
the Commissioner of Taxation (Commissioner). The monies are required
to be paid to the Commissioner, at the end of each half-year. Section 18
of the Act relieves superannuation providers of their obligation to pay
unclaimed money to the Commissioner where it is paid to a state or
territory authority under legislation which satisfies the requirements in
section 18.
4.5 Under the amendments private sector superannuation providers
are no longer relieved of their obligation to pay unclaimed money to the
Commissioner by paying it to a state or territory authority. Unclaimed
money from these schemes is required to be paid to the Australian
Government in accordance with sections 16 and 17 of the Act. Unclaimed
money can only be paid to a state or territory authority if the money is
from a state or territory public sector scheme and the relevant state or
47
Superannuation Legislation Amendment (Simplification) Bill 2007
territory law complies with the requirements in section 18 of the Act.
[Schedule 3, items 58 and 59]
4.6 The amendments apply to statements required to be given under
section 16 of the Act in respect of the half-year ending on 30 June 2007
and later half-years. [Schedule 3, item 60]
Self-managed superannuation funds
Additions to the law created by the Tax Laws Amendment (Simplified
Superannuation) Bill 2006 (main Bill)
4.7 A new declaration is introduced to ensure self-managed
superannuation fund trustees, and directors of corporate trustees,
understand their obligations and responsibilities as trustees under the
superannuation laws.
4.8 An individual who becomes a trustee or a director of the
corporate trustee of a self-managed superannuation fund after
30 June 2007 must sign a declaration in the approved form stating that
they understand their duties as trustee of a self-managed superannuation
fund. The declaration must be signed no later than 21 days after becoming
a trustee or director. [Schedule 3, item 54, paragraphs 104A(1)(a) and 104A(2)(a) of
the Superannuation Industry (Supervision) Act 1993]
4.9 Existing trustees or directors of a corporate trustee must ensure
that any trustee or director appointed after 30 June 2007 signs the
declaration no later than 21 days after becoming a trustee or director.
[Schedule 3, item 54, paragraphs 104A(1)(b) and 104A(2)(b) of the Superannuation
Industry (Supervision) Act 1993]
4.10 All trustees or directors of a corporate trustee (including existing
trustees or directors and trustees or directors appointed after
30 June 2007) must also ensure that the declaration is retained for as long
as it is relevant (and in any case for at least 10 years) and make it
available to the `Regulator' if required. [Schedule 3, item 54,
paragraphs 104A(2)(c) and (d) of the Superannuation Industry (Supervision) Act 1993]
4.11 Contravention of this provision is an offence of strict liability,
with a maximum penalty of 50 penalty units. This is consistent with other
record-keeping requirements in the Superannuation Industry
(Supervision) Act 1993 and reflects the importance of ensuring trustees
clearly understand their obligations and responsibilities. [Schedule 3,
item 54, subsection 104A(3) of the Superannuation Industry (Supervision) Act 1993]
48
Other changes
4.12 An administrative penalty of 20 penalty units under
section 288-25 of the Taxation Administration Act 1953 (TAA 1953) may
also apply for a failure to keep the signed declaration.
Consequential changes
4.13 Section 15DB of the Superannuation (Self Managed
Superannuation Funds) Taxation Act 1987 specifies when the supervisory
levy for self-managed superannuation funds is due and payable. A
reference to this section is added to the table of tax-related liabilities
imposed under other legislation in subsection 250-10(2) of the TAA 1953.
[Schedule 1, item 385, item 67 in the table in subsection 250-10(2) of the TAA 1953]
4.14 Under Simplified Superannuation the collection and recovery
provisions of the TAA 1953 apply to the self-managed superannuation
fund supervisory levy. The amendments repeal sections 15DD and 15DE
of the Superannuation (Self Managed Superannuation Funds) Taxation
Act 1987 as these are duplicate provisions. [Schedule 3, items 55 and 56]
4.15 The amendments to the supervisory levy provisions apply for
the 2007-08 income year and later income years. The repeal of
sections 15DD and 15DE does not affect the Commissioner's ability to
collect and recover the supervisory levy, and any penalty for the late
payment of the levy, imposed under the Superannuation (Self Managed
Superannuation Funds) Taxation Act 1987 in respect of the 2006-07
income year and earlier income years. [Schedule 3, item 57]
Reporting and indexation
Additions to the law created by the main Bill
4.16 The approved form for a roll-over superannuation benefit may
require the tax file numbers (TFNs) of the first superannuation provider
and superannuation plan. In addition, if the member in respect of whom
contributions are made, has quoted their TFN to the first superannuation
provider, the approved form may also require the TFN of the member.
This also applies if an individual making contributions on the member's
behalf has legally provided the member's TFN to the first superannuation
provider. [Schedule 1, item 393]
4.17 A note is included at the end of the guide to superannuation
reporting requirements directing readers to the payment summary
requirements in relation to superannuation lump sums and employment
49
Superannuation Legislation Amendment (Simplification) Bill 2007
termination payments contained in section 16-165 of the TAA 1953.
[Schedule 1, item 392]
4.18 The definitions of `indexation factor' and `indexation number'
in the Income Tax Assessment Act 1997 are amended to include a
reference to the indexation provisions added to that Act as part of
Simplified Superannuation. [Schedule 1, items 254 and 255]
4.19 To better clarify the policy intent, the superannuation indexation
provisions are amended to refer to `financial year' as well as `income
year', as the caps on superannuation contributions operate on a financial
year basis. [Schedule 4, items 7 and 8]
4.20 A typographical error in an application provision of
Division 298 of the TAA 1953 is corrected. [Schedule 4, item 12]
Superannuation double coverage
Additions to the law created by the main Bill
4.21 Australia has entered into a number of bilateral social security
agreements with other countries, which include superannuation double
coverage provisions. The aim of the superannuation provisions is to
ensure that Australians sent to work temporarily overseas or non-residents
sent to work temporarily in Australia are required to contribute (or have
employer contributions made on their behalf) only to the
pension/superannuation scheme in their home country.
4.22 The superannuation aspects of the agreements only operate
when there is double coverage, that is, both countries must have
compulsory contributory schemes that, without the Agreement, would
both apply at the same time.
4.23 Broadly, the intent of the Agreements is that if an employee is
sent from Australia to work temporarily (normally up to four years) in
another country then the employee and their employer will be exempt
from making contributions in the other country provided they remain
covered by the SG law in Australia. To receive an exemption from the
other country's system the employer must receive a certificate of coverage
from the Australian Taxation Office (ATO).
4.24 In some circumstances the SG law may not actually require the
employer to continue to make the SG contributions in Australia for the
employee while they are working overseas. This may arise if the
employee ceases to be an Australian resident (which may occur after a
50
Other changes
two-year period overseas) or if the employee is working overseas for a
related employer rather than the Australian resident employer.
4.25 Where a certificate of coverage has been issued by the ATO then
the employer to whom the certificate relates is legally obliged to make
SG contributions in Australia. [Schedule 3, items 52 and 53]
51
Index
Schedule 1: Consequential amendments etc.
Bill reference Paragraph number
3.30 and 3.34
Item 1 of the Income Tax (Former Non-resident Superannuation
Funds) Amendment Bill 2007
Items 1 and 2 of the Income Tax Amendment Bill 2007 2.42
3.30
Items 1 and 2 of the Income Tax (Former Complying
Superannuation Funds) Amendment Bill 2007
3.30
Items 1, 2, 4, 5, 11, 12, 15 and 18 of the Income Tax Rates
Amendment (Superannuation) Bill 2007
3.32
Items 1, 19, 23 to 25, 29 to 33, 99, 109 to 111, 128 to 133, 148,
189, 192, 195, 221, 232, 234 to 236, 242, 243, 252 and 258
3.38
Item 2 of the Income Tax (Former Non-resident Superannuation
Funds) Amendment Bill 2007
Items 2 to 4, 6 and 7 2.21
Items 2 to 4, 6, 7, 181 and 405 2.20
Item 3 of the Income Tax Amendment Bill 2007 3.35
3.38
Item 3 of the Income Tax (Former Complying Superannuation
Funds) Amendment Bill 2007
2.15
Items 3, 6, 7, 9, 14, 16, 17, 20, 22 to 24, 33 and 34 of the Income
Tax Rates Amendment (Superannuation) Bill 2007
3.35
Items 4 and 5 of the Income Tax Amendment (Superannuation)
Bill 2007
Items 4 and 7 of the Income Tax Amendment Bill 2007 3.34
Items 5, 6 and 8 of the Income Tax Amendment Bill 2007 3.30
1.53
Items 5 and 179, Subdivisions AA and AB of the ITAA 1936 and
sections 26-75, 26-80 and 26-85 of the ITAA 1997
Item 7, Subdivision AACA 1.54
Item 8 3.29
3.34
Items 8, 10, 13, 19, 21, 25 to 30 of the Income Tax Rates
Amendment (Superannuation) Bill 2007
Item 9 of the Income Tax Amendment Bill 2007 3.38
Items 9 and 122 2.32
Items 10 to 12, 20, 90, 92 to 97, 239, 241, 247, 248 and 367 to 369 2.25
Items 13 to 15 2.32
53
Superannuation Legislation Amendment (Simplification) Bill 2007
Bill reference Paragraph number
Items 17 and 97 2.28
3.30
Items 18, 21, 39, 40, 57, 58, 72, 79, 88, 89, 101, 102, 108 to 111,
115, 116, 121, 148, 190, 191, 193, 195, 196, 198, 199, 203, 230 to
232, 234, 252, 273, 274, 276
2.27
Items 20, 37, 81 to 83, 91, 92, 96, 144, 176, 180, 182, 246, 249, 367
to 369 and 377
Items 20, 43 to 46, 135 and 136 2.31
2.33
Items 20, 73, 75, 80, 176, 180, 182, 246, 249, 346, 367 to 369 and
377
3.35
Items 22, 28, 69, 70, 84 to 87, 98, 104, 107, 124 to 127, 134, 141,
200, 201, 202, 204
Items 26, 35, 36, 250, 251, 259 and 260 2.42
Items 27, 34, 100 and 147 3.33
3.28
Items 31 and 32 of the Income Tax Rates Amendment
(Superannuation) Bill 2007
2.43 and 3.38
Item 35 of the Income Tax Rates Amendment (Superannuation)
Bill 2007
Items 38, 112, 113, 137 to 139, 370 to 372 and 374 2.42
Items 41, 51 to 56, 220, 221, 267 and 268 2.19
Items 42, 47, 103, 105, 106, 140, 149, 244, 245 and 376 2.42
1.56
Items 48 to 50, 74, 76, 77, 78, 123, 142, 143, 156, 163, 164, 166,
167, 168, 173, 177, 178, 186, 325, 326, 340, 381, 383, 402 and 403,
subsections 24AYA(1), (3) and (7), 73B(1) and (20A), section 90
(definition of `net income' and `partnership loss'),
subsection 262A(4A), subsections 57-40(1) and 57-50(1) in
Schedule 2D to the ITAA 1936, sections 10-5, 12-5, 13-1 and 20-5,
paragraphs 26-55(1)(d), 85-10(2)(f) and 85-10(2)(f) (Note) of the
ITAA 1997, paragraph 1075(1)(c) and
subparagraph 1185Y(3)(d)(iii) of the Social Security Act 1991,
subsection 5(2) of the Superannuation (Government
Co-contribution for Low Income Earners) Act 2003, section 45-340
in Schedule 1 (method statement, step 1, paragraph (g)) and
section 45-375 in Schedule 1 (method statement, step 1,
paragraph (f)) of the TAA 1953 and paragraph 46C(1)(c) and
subparagraph 49Y(3)(f)(iii) of the Veterans' Entitlements Act 1986
Items 59 to 64, 226 and 227 2.23
Items 65 to 68 2.24
1.55
Items 71, 253 and 256, section 67AAA of the ITAA 1936 and
subsection 995-1(1) of the ITAA 1997
1.4
Items 74, 76 and 206, subsection 73B(1) (definition of
`contributions to superannuation funds'), subsection 73B(20A) of
54
Index
Bill reference Paragraph number
the ITAA 1936 and subsection 290-60(1) (Note) of the ITAA 1997
Item 114 3.36
Items 117 to 120 3.19
Items 145, 146 and 284 to 286 2.42
Items 150, 153, 154, 156, 159, 165, 173 and 174 3.37
Items 151, 152, 155 to 158, 160, 161, 169 to 173 and 175 2.42
Item 179, section 26-75 of the ITAA 1997 1.49
Item 179, section 26-80 of the ITAA 1997 1.50
Item 179, section 26-85 of the ITAA 1997 1.51
Item 183 2.19
Items 184 and 185 2.19
Items 194 and 197 2.29
Item 205, section 290-5 of the ITAA 1997 1.8
Item 207, subsection 290-150(2) 1.9
Items 208 to 211, section 292-390 of the ITAA 1997 1.31
Items 212 and 213 3.28
Item 214 3.8
Item 215 3.5
Item 216 3.6
Items 217 and 218 3.4
2.19
Items 219 and 269, section 304-15 of the Income Tax (Transitional
Provisions) Act 1997
Items 222 and 223 2.19
Item 224 2.18
Item 225 2.18
Items 228 and 229 3.28
Item 233 3.28
Items 237, 238, 240, 257, 269, 351 and 375 2.30
Items 254 and 255 4.18
1.17
Item 261, subsection 292-25(1A) of the Income Tax (Transitional
Provisions) Act 1997
1.16
Items 262 to 264, section 292-25 of the Income Tax (Transitional
Provisions) Act 1997
1.20
Item 265, section 292-90 of the Income Tax (Transitional
Provisions) Act 1997
Item 266, Subdivisions 295-B and 295-F 3.16
Item 266, Subdivision 295-F, subsection 295-390(6) 3.17
55
Superannuation Legislation Amendment (Simplification) Bill 2007
Bill reference Paragraph number
Item 266, Subdivision 295-G 3.15
Item 266, subsection 295-190(1) 3.12
Item 266, subsection 295-190(2) 3.14
2.18
Item 269, section 306-10 of the Income Tax (Transitional
Provisions) Act 1997
Item 270 2.18
Item 271 2.18
Item 272 2.18
Items 275, 344, 345, 352 and 353 3.34
Item 277 3.22
Item 278 3.21
Items 279 and 361 2.6
Items 280 and 281 3.23
Item 282 3.24
Item 283 3.25
Items 289, 290, 395, 396 and 401 2.35
Items 291, 293, 397 and 399 2.36
Items 292 and 398 2.37
Items 294 to 296 2.38
Items 297 to 324 2.41
Items 328 to 338 2.34
1.46
Item 341, paragraph 7(1)(b) of the Superannuation (Government
Co-contribution for Low Income Earners) Act 2003
1.47
Items 342 and 343, paragraph 7(1)(c) of the Superannuation
(Government Co-contribution for Low Income Earners) Act 2003
Items 344 and 345, subsection 995-1(1) of the ITAA 1997 1.48
Items 349 and 350 2.7
Item 353 3.31
Items 362 and 363 3.31
Item 366, subsection 8AAB(5) of the TAA 1953 1.30
Item 373 2.4
Item 384, subsection 250-10(2), Schedule 1 to the TAA 1953 1.34
4.13
Item 385, item 67 in the table in subsection 250-10(2) of the
TAA 1953
Items 386 to 391, Division 280, Schedule 1 to the TAA 1953 1.29
Item 392 4.17
Item 393 4.16
56
Index
Bill reference Paragraph number
Item 394 3.26
Item 406 1.57, 1.58, 2.43 and
3.38
Schedule 2: Small business relief for CGT events
Bill reference Paragraph number
1.41
Items 1, 5 and 6, section 11-15, paragraph 152-310(2)(a) and
subsection 152-310(5) of the ITAA 1997
1.44
Items 2, 7 and 8, paragraph 82-135(fa), subsections 152-325(3A)
and (9) of the ITAA 1997
Item 3, paragraphs 152-305(1)(b) and (c) of the ITAA 1997 1.38
1.40
Items 4 and 6, subsections 152-305(1) (Note 2) and 152-310(4) of
the ITAA 1997
Item 7, subsection 152-325(3A) of the ITAA 1997 1.45
Item 8, subsections 152-325(7) and (8) of the ITAA 1997 1.42
Item 9, subsection 290-150(4) of the ITAA 1997 1.7
Item 9, paragraph 290-150(4)(a) of the ITAA 1997 1.38
Item 9, paragraph 290-150(4)(b) of the ITAA 1997 1.43
Items 10 to 12, subsections 292-100(4) and (6) of the ITAA 1997 1.25
Item 12 1.36 and 1.57
Schedule 3: Other amendments
Bill reference Paragraph number
Item 1 2.9
Items 1 to 3 2.12
Item 2 2.10
Items 4 to 7 2.5
Items 8 and 9 2.17
Item 10 2.16
Item 10, section 285-5 of the ITAA 1997 1.11
Items 11 and 12, paragraphs 290-85(1)(b) and (c) of the ITAA 1997 1.5
Items 13 and 14, subsections 290-85(1A) and (3) of the ITAA 1997 1.6
Item 15, subsection 290-180(3A) of the ITAA 1997 1.10
57
Superannuation Legislation Amendment (Simplification) Bill 2007
Bill reference Paragraph number
Item 16, subsection 292-25(3) of the ITAA 1997 1.18
1.21
Items 17 and 18, paragraphs 292-90(1)(aa) and 292-90(4)(a) of the
ITAA 1997
Item 18, paragraph 292-90(4)(b) of the ITAA 1997 1.22
Item 18, paragraph 292-90(4)(c) of the ITAA 1997 1.24
1.26
Items 19 and 20, paragraphs 292-100(2)(b) and 292-100(7)(b) of
the ITAA 1997
1.14
Items 21, 24 and 25, paragraph 292-170(6)(d) and
subsection 292-170(7) of the ITAA 1997
Items 22 and 23, section 292-170 of the ITAA 1997 1.15
Item 26, paragraph 292-330(b) of the ITAA 1997 1.33
1.27
Items 27 to 32 and 48 to 50, sections 292-410 and 292-415 of the
ITAA 1997, sections 292-80B and 292-80C of the Income Tax
(Transitional Provisions) Act 1997
1.28
Items 31 and 32, subparagraph 292-415(1)(c)(ii) and
paragraph 292-415(2)(b) of the ITAA 1997
Items 33, 34 and 38 to 41 3.9
Item 35 2.19
Item 36 2.18
Item 37, paragraph 307-10(a) of the ITAA 1997 2.30
Item 37, paragraph 307-10(ab) of the ITAA 1997 2.13
Items 38 to 41 2.18
Items 42 and 43 2.18
Item 44 2.18
1.13
Item 45, section 290-15 of the Income Tax (Transitional
Provisions) Act 1997
1.19
Items 46 and 47, paragraphs 292-80(3)(ea) and 292-80(3)(fa) of the
Income Tax (Transitional Provisions) Act 1997
Items 52 and 53 4.25
4.8
Item 54, paragraphs 104A(1)(a) and 104A(2)(a) of the
Superannuation Industry (Supervision) Act 1993
4.9
Item 54, paragraphs 104A(1)(b) and 104A(2)(b) of the
Superannuation Industry (Supervision) Act 1993
4.10
Item 54, paragraphs 104A(2)(c) and (d) of the Superannuation
Industry (Supervision) Act 1993
4.11
Item 54, subsection 104A(3) of the Superannuation Industry
(Supervision) Act 1993
4.14
Items 55 and 56, sections 15DD and 15DE of the Superannuation
(Self Managed Superannuation Funds) Taxation Act 1987
58
Index
Bill reference Paragraph number
Item 57 4.15
Items 58 and 59 4.5
Item 60 4.6
Items 61 and 62, section 14ZW of the TAA 1953 1.32
Items 63 to 65 2.4
Item 66 1.57 and 2.43
Schedule 4: Technical corrections
Bill reference Paragraph number
Item 1 2.42
Item 2 2.42
Items 4 to 6 2.42
Items 7 and 8 4.19
Items 9 to 11 2.42
Item 12 4.20
59
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