Commonwealth Numbered Acts

FIRST HOME SAVER ACCOUNTS (CONSEQUENTIAL AMENDMENTS) ACT 2008 (NO. 45, 2008) - SCHEDULE 7

Income Tax Assessment Act 1936

1  Subsection 124ZM(6) (definition of complying superannuation class of taxable income )

Repeal the definition.

2  Subsection 124ZM(6) (before the definition of venture capital franked part )

Insert:

"complying superannuation/FHSA class of taxable income" is the life assurance company's complying superannuation/FHSA class of taxable income, within the meaning of subsection 995-1(1) of the Income Tax Assessment Act 1997 , for the year of income in which the distribution is made.

3  Section 470 (definition of virtual PST asset )

Repeal the definition.

4  Section 470

Insert:

"complying superannuation/FHSA asset" has the same meaning as in the Income Tax Assessment Act 1997 .

5  Division 11A of Part XI (heading)

Repeal the heading, substitute:

Division 11A -- Exemption for complying superannuation/FHSA assets, segregated exempt assets and interests held by complying superannuation entities etc.

Income Tax Assessment Act 1997

6  Subsection 210‑175(2) (definition of complying superannuation class of taxable income )

Repeal the definition.

7  Subsection 210‑175(2) (before the definition of tax offset to which the entity would otherwise be entitled )

Insert:

"complying superannuation/FHSA class of taxable income" means the * complying superannuation/FHSA class of taxable income of the company for the income year in which the * distribution is made.

8  Section 320‑45 (heading)

Repeal the heading, substitute:

320‑45   Tax treatment of gains or losses from CGT events in relation to complying superannuation/FHSA assets

9  Section 320‑55 (heading)

Repeal the heading, substitute:

320‑55   Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from complying superannuation/FHSA assets

10  Section 320‑87 (heading)

Repeal the heading, substitute:

320‑87   Deduction for assets transferred from or to complying superannuation/FHSA asset pool

11  Paragraph 320‑107(1)(b)

Omit " virtual PST life insurance policy ", substitute " complying superannuation/FHSA life insurance policy ".

12  Subsection 320‑107(3) (formula)

Repeal the formula, substitute:

13  Subsection 320‑107(3) (definition of complying superannuation class rate )

Repeal the definition.

14  Subsection 320‑107(3)

After "where:", insert:

"complying superannuation/FHSA class rate" is the rate of tax imposed on the * complying superannuation/FHSA class of the company's taxable income for the income year.

15  Section 320‑120 (heading)

Repeal the heading, substitute:

320‑120   Capital losses from assets other than complying superannuation/FHSA assets or segregated exempt assets

16  Section 320‑125 (heading)

Repeal the heading, substitute:

320‑125   Capital losses from complying superannuation/FHSA assets

17  Section 320‑137 (heading)

Repeal the heading, substitute:

320‑137   Taxable income--complying superannuation/FHSA class

18  Subsection 320‑137(1)

Omit " complying superannuation class ", substitute " complying superannuation/FHSA class ".

19  Section 320‑141 (heading)

Repeal the heading, substitute:

320‑141   Tax loss--complying superannuation/FHSA class

20  Subsection 320‑141(1) (heading)

Repeal the heading, substitute:

Working out a tax loss of the complying superannuation/FHSA class

21  Subsection 320‑141(1)

Omit " complying superannuation class ", substitute " complying superannuation/FHSA class ".

22  Subsection 320‑141(2) (heading)

Repeal the heading, substitute:

Deducting a tax loss of the complying superannuation/FHSA class

23  Subsection 320‑141(2)

Omit " complying superannuation class ", substitute " complying superannuation/FHSA class ".

24  Subdivision 320‑F (heading)

Repeal the heading, substitute:

Subdivision 320‑F -- Complying superannuation/FHSA asset pool

25  Section 320‑165

Omit " virtual PST ", substitute " complying superannuation/FHSA asset pool ".

26  Section 320‑170 (heading)

Repeal the heading, substitute:

320‑170   Establishment of complying superannuation/FHSA asset pool

27  Subsection 320‑170(1) (note)

Repeal the note.

28  Subsection 320‑170(6)

Repeal the subsection, substitute:

             (6)  The assets from time to time segregated are together to be known as the complying superannuation/FHSA asset pool and each asset from time to time included among those assets is to be known as a complying superannuation/FHSA asset .

29  Section 320‑175 (heading)

Repeal the heading, substitute:

320‑175   Valuations of complying superannuation/FHSA assets and complying superannuation/FHSA liabilities for each valuation time

30  Subsection 320‑180(1) (heading)

Repeal the heading, substitute:

Transfer from the complying superannuation/FHSA asset pool

31  Subsection 320‑180(3) (heading)

Repeal the heading, substitute:

Transfer to the complying superannuation/FHSA asset pool

32  Section 320‑185 (heading)

Repeal the heading, substitute:

320‑185   Transfer of assets to complying superannuation/FHSA asset pool otherwise than as a result of a valuation under section 320‑175

33  Section 320‑190 (heading)

Repeal the heading, substitute:

320‑190   Complying superannuation/FHSA liabilities

34  Subsection 320‑190(2)

Omit " virtual PST liabilities ", substitute " complying superannuation/FHSA liabilities ".

35  Section 320‑195 (heading)

Repeal the heading, substitute:

320‑195   Transfer of assets and payment of amounts from a complying superannuation/FHSA asset pool otherwise than as a result of a valuation under section 320‑175

36  Section 320‑200 (heading)

Repeal the heading, substitute:

320‑200   Consequences of transfer of assets to or from complying superannuation/FHSA asset pool

37  Section 320‑315 (heading)

Repeal the heading, substitute:

320‑315   Complying superannuation/FHSA asset pool and segregated exempt assets

38  Section 713‑535 (heading)

Repeal the heading, substitute:

713‑535   Losses of entities whose membership interests are complying superannuation/FHSA assets of life insurance company

39  Subsection 713‑545(6) (formula)

Repeal the formula, substitute:

40  Subsection 713‑545(6) (definition of complying superannuation class tax rate )

Repeal the definition.

41  Subsection 713‑545(6) (before the definition of ordinary class tax rate )

Insert:

"complying superannuation/FHSA class tax rate" means the rate of tax in respect of the * complying superannuation/FHSA class of the taxable income of a * life insurance company for the income year in which the joining time occurs (see paragraph 23A(b) of the Income Tax Rates Act 1986 ).

42  Subsection 995‑1(1)

Insert:

"complying superannuation/FHSA asset" has the meaning given by subsection 320-170(6).

43  Subsection 995‑1(1)

Insert:

"complying superannuation/FHSA asset pool" has the meaning given by subsection 320-170(6).

44  Subsection 995‑1(1) (all the definitions of complying superannuation class )

Repeal the definitions.

45  Subsection 995‑1(1)

Insert:

"complying superannuation/FHSA class" :

                     (a)  for a taxable income of a * life insurance company--has the meaning given by section 320‑137; or

                     (b)  for a * tax loss of a * life insurance company--has the meaning given by section 320‑141.

46  Subsection 995‑1(1)

Insert:

"complying superannuation/FHSA liabilities" of a * life insurance company means liabilities of the company under * life insurance policies referred to in subsection 320-190(1).

47  Subsection 995‑1(1)

Insert:

"complying superannuation/FHSA life insurance policy" means a * life insurance policy that:

                     (a)  is held by:

                              (i)  the trustee of a fund that is a * complying superannuation fund or a * complying approved deposit fund; or

                             (ii)  the trustee of a * pooled superannuation trust; or

                     (b)  is held by an individual and:

                              (i)  provides for an * annuity that is not presently payable, if the annuity was purchased out of a * superannuation lump sum or an * employment termination payment; or

                             (ii)  is so held in the benefit fund of a * friendly society, being a fund that is a regulated superannuation fund under the Superannuation Industry (Supervision) Act 1993 ; or

                     (c)  is held by another * life insurance company and is a * complying superannuation/FHSA asset of that company; or

                     (d)  is an * FHSA;

and is not an * excluded complying superannuation/FHSA life insurance policy.

48  Subsection 995‑1(1)

Insert:

"excluded complying superannuation/FHSA life insurance policy" means a * life insurance policy that:

                     (a)  provides only for * superannuation death benefits, * disability superannuation benefits or temporary disability benefits of a kind referred to in paragraph 295‑460(c), that are not * participating benefits; or

                     (b)  is an * exempt life insurance policy.

49  Subsection 995‑1(1) (definition of virtual pooled superannuation trust )

Repeal the definition.

50  Subsection 995‑1(1) (definition of virtual PST )

Repeal the definition.

51  Subsection 995‑1(1) (definition of virtual PST asset )

Repeal the definition.

52  Subsection 995‑1(1) (definition of virtual PST liabilities )

Repeal the definition.

53  Subsection 995‑1(1) (definition of virtual PST life insurance policy )

Repeal the definition.

Income Tax Rates Act 1986

54  Subsection 3(1) (definition of complying superannuation class )

Repeal the definition.

55  Subsection 3(1)

Insert:

"complying superannuation/FHSA class" of the taxable income of a life insurance company has the same meaning as in the Income Tax Assessment Act 1997 .

Taxation Administration Act 1953

56  Subsection 45‑290(3) in Schedule 1 (note)

Repeal the note.

[ Minister's second reading speech made in--

House of Representatives on 28 May 2008

Senate on 16 June 2008 ]