"RSA component" has the meaning given by section 299D.

After "entity" (wherever occurring), insert "or RSA provider".

Add:

; or (d) in relation to an RSA—has the meaning given by section 299D.

After "PST)", insert "or an RSA".

Insert:

(ba)

in the case of an RSA:

(i)

contributions made for the purpose of making provision for superannuation benefits for another person; and

(ii)

a specified roll-over amount; and

(iii)

a contribution of the kind mentioned in paragraph 82AAT(1CA)(b), to the extent to which the contribution:

(A) is covered by a notice under subsection 82AAT(1CB) received by the RSA provider before the date on which the RSA provider lodges its return of income for the contribution year; and
(B) has not been rolled-over as mentioned in paragraph 27A(13)(a); and

(iv)

a contribution made under section 65 of the Superannuation Guarantee

(Administration)

Act 1992 ;

Insert:

(3)

Subject to this Division, if:

(a)

in a year of income (the notice year ) an RSA provider receives a notice under subsection 82AAT(1CB) in relation to contributions that were made to an RSA provided by the RSA provider during a year of income (the contribution year ); and

(b)

the RSA provider receives the notice after the date on which the RSA provider lodged its return of income for the contribution year;

the contributions, to the extent to which they are covered by the notice, are taxable contributions in relation to the notice year.

Insert:

(2)

Subject to this section, if:

(a)

in a year of income (the notice year ) an RSA provider receives a notice under subsection 82AAT(1CD) in relation to contributions that were made to an RSA provided by the RSA provider in an earlier year of income (the contribution year ); and

(b)

the RSA provider receives the notice after the date on which the RSA provider lodged its return of income for the contribution year; and

(c)

apart from this section, the assessable income of the RSA provider of the contribution year would include an amount (the clawback amount ) that would not have been included if the RSA provider had received the notice before that date;

the clawback amount is allowable as a deduction from the assessable income of the RSA provider for the notice year.

After "fund" (wherever occurring), insert "or RSA provider".

Insert:

In determining the deductions allowable from the assessable income of an RSA provider that is not a life assurance company, any amount that is paid to the RSA provider as mentioned in subsection 274(1), or is a contribution to which subsection 82AAT(1CA) applies, is taken to be assessable income of the RSA provider (whether or not it is a taxable contribution).

Insert:

This Division sets out how to calculate the taxable income of an RSA provider, other than one that is a life assurance company.

Note: RSA providers that are life assurance companies are covered by Division 8 of Part III.

The taxable income of an RSA provider (other than a life assurance company) includes all taxable contributions made during the year of income to RSAs provided by the RSA provider.

(1)

This section sets out how to calculate the RSA amount of an RSA provider's taxable income.

(2)

The RSA amount is the sum of:

(a)

all taxable contributions made; and

(b)

other amounts (other than contributions) credited;

during the year of income, to RSAs provided by the RSA provider, reduced by any amounts paid from the RSA other than benefits paid to, or in respect of, the holder of the RSA.

(3)

In calculating the RSA amount, any amount of tax paid in respect of an RSA is taken not to have been an amount paid from the RSA.

(4)

In calculating the sum, the amounts set out in subsections (5) and (6) are taken not to have been credited.

(5)

Amounts credited to an RSA where a pension was paid from the RSA in respect of so much of the year of income as the RSA existed.

(6)

Where a pension was being paid from an RSA, in respect of a part, but not the whole, of so much of the year of income as the RSA existed, amounts worked out using the following formula:

If, apart from this section:

(a)

the taxable income of an RSA provider is less than the RSA amount; or

(b)

the RSA provider has no taxable income;

then:

(c)

the RSA provider is taken to have both a taxable income and a tax loss in relation to the year of income; and

(d)

the taxable income is taken to equal the RSA amount; and

(e)

the tax loss is taken to be the amount that would have been the RSA provider's tax loss if the RSA amount were not income derived.

(1)

The taxable income of an RSA provider (other than a life assurance company) is divided into the RSA component and the standard component .

(2)

The RSA component is equal to the RSA amount worked out under section 299C.

(3)

The standard component is the amount (if any) remaining after deducting the RSA component from the taxable income.

(1)

Any amounts paid, during a year of income, as premiums for an insurance policy that is wholly to provide death or disability benefits under RSAs provided by the RSA provider are allowable as deductions in calculating the taxable income for the year of income of the RSA provider.

(2)

No deduction is allowable in respect of amounts withdrawn from, or benefits paid in relation to, RSAs.

(3)

No deduction is allowable for amounts credited to RSAs.

(1)

If an RSA provider receives in a year of income a rebate or refund of a premium which has, in whole or in part, been allowed or is allowable as a deduction under subsection 299E(1), so much of that rebate or refund as is attributable to that deduction is to be included in the assessable income of the RSA provider for the year of income.

(2)

Nothing in subsection (1) limits the circumstances in which other rebates or refunds are included in the assessable income.

Any amounts that, but for the operation of subsection 299C(4), would have been taken into account under paragraph 299C(2)(b) in calculating the RSA component of the RSA provider's income for the year of income are exempt.