Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1989No. 105, 1989 - SECT 5

5. Section 27A of the Principal Act is amended:
(a) by omitting subparagraph (a) (i) of the definition of "eligible
termination payment" in subsection (1) and substituting the following
subparagraph:

"(i) made from a superannuation fund in respect of the taxpayer by reason that
the taxpayer is or was a member of the fund;";

   (b)  by omitting ", within the meaning of Part IX," from subparagraph (a)
        (iiia) of the definition of "eligible termination payment" in
        subsection (1);

   (c)  by omitting sub-subparagraph (aa) (iv) (A) of the definition of

"eligible termination payment" in subsection (1) and substituting the
following sub-subparagraph:

"(A) made to the taxpayer from a superannuation fund by reason that another
person was a member of the fund;";

   (d)  by omitting ", within the meaning of Part IX," from sub-subparagraph
        (aa) (iv) (D) of the definition of "eligible termination payment" in
        subsection (1);
(e) by omitting "to a natural person" from the definition of "immediate
annuity" in subsection (1);
(f) by omitting paragraph (b) of the definition of "life assurance company" in
subsection (1) and substituting the following paragraph: "(b) an SGIO;";

   (g)  by omitting ", within the meaning of Part IX," from subparagraph (a)
(iaa) of the definition of "superannuation fund" in subsection (1);

   (h)  by inserting "or (B)" after "27D (1) (b) (iii) (A)" in paragraph (b)
        of
the definition of "undeducted purchase price" in subsection (1);

   (j)  by inserting in subsection (1) the following definitions:

"'actual net benefit' in relation to an amount that is an ETP in relation to a
taxpayer, means the amount of the ETP reduced by any tax payable by the
taxpayer that is attributable to the ETP;
'complying ADF' has the same meaning as in Part IX;
'complying superannuation fund' has the same meaning as in Part IX;
'continuously complying ADF' has the same meaning as in Part IX;
'continuously complying superannuation fund' has the same meaning as in Part
IX;
'eligible superannuation fund' has the same meaning as in Part IX;
'equivalent old system ETP', in relation to an amount that is an ETP in
relation to a taxpayer, means the amount that would have been the amount of
the ETP if taxable contributions were exempt income;
'ETP' means an eligible termination payment;
'non-complying superannuation fund' has the same meaning as in Part IX;
'old system net benefit', in relation to an equivalent old system ETP in
relation to a taxpayer, means the amount of that ETP reduced by any tax that
would have been payable by the taxpayer and attributable to that ETP if:

   (a)  the whole of any amount that would have been included in the
        assessable income of the taxpayer under subsection 27B (1) in respect
        of the ETP were treated as having been included under paragraph 27B
        (1) (b); and

   (b)  the rebate under Subdivision AAA of Division 17, insofar as the rebate
        would be attributable to the ETP, were calculated by reference to an
        upper limit (within the meaning of that Subdivision) of $55,000;
'post-June 83 component', in relation to an ETP, has the meaning given by
section 27AA;
'pre-July 83 component', in relation to an ETP, has the meaning given by
section 27AA;
'rolled-over' has the meaning given by paragraph (13) (a);
'roll-over' means an application of section 27D in relation to an ETP;
'taxable contribution' has the same meaning as in Part IX;
'taxed element', in relation to the post-June 83 component of an ETP, has the
meaning given by section 27AB;
'taxed superannuation fund', in relation to an ETP, means a superannuation
fund that:

   (a)  is or has been an eligible superannuation fund in relation to any year
        of income; and

   (b)  is not a constitutionally protected fund, within the meaning of Part
        IX, in relation to the year of income in which the ETP was made;
'untaxed element', in relation to the post-June 83 component of an ETP, has
the meaning given by section 27AB;";

   (k)  by omitting subsection (10) and substituting the following subsection:

"(10) Where:

   (a)  a part of an ETP (in this subsection called the 'original ETP') has
        been rolled-over; and

   (b)  the eligible service period (in this subsection called the 'original
        eligible service period') in relation to the original ETP commenced
        before 1 July 1983; then, for the purposes of the application of this
        Act in relation to any subsequent ETP that is made in relation to the
        taxpayer and is attributable to the original ETP, there shall be
        deducted from the beginning of the original eligible service period
        the number of whole days included in the original eligible service
        period that is calculated using the formula:
Reduced pre-July 83 component
Pre-July 83 days x -----------------------------
Pre-July 83 component where:
Pre-July 83 days is the number of whole days in the original eligible service
period that occurred before 1 July 1983;
Reduced pre-July 83 component is the number of whole dollars in so much of the
pre-July 83 component for the original ETP as has not been rolled-over; and
Pre-July 83 component is the number of whole dollars in the pre-July 83
component for the original ETP.";

   (m)  by omitting subsection (13) and substituting the following subsection:

"(13) For the purposes of this Subdivision:

   (a)  an amount is rolled over if section 27D requires the amount to be
        taken to have been expended in making a payment as mentioned in
        paragraph (12) (a), (b) or (c) of this section; and

   (b)  an ETP or a particular part of an ETP is attributable to an earlier
        ETP or a particular part of an earlier ETP if and only if the later
        ETP or part is attributable to the earlier ETP or part, directly or
        indirectly, through one or more rollovers.";

   (n)  by omitting from paragraph (14) (a) "paragraph 27C (1) (d)" and
        substituting "subsection 27C (1A)";

   (o)  by omitting from subparagraph (14) (c) (ii) "(a) (ii)" and
        substituting "(a) (iii)";

   (p)  by adding at the end the following subsections:

"(17) For the purposes of this Subdivision, where the Commissioner is of the
opinion that the whole or a part of a particular ETP:

   (a)  is not, apart from this subsection, paid from an eligible
        superannuation fund; and

   (b)  is, in effect, funded from an eligible superannuation fund; the ETP,
        or the part of the ETP, as the case may be, shall be treated as if it
        were paid from that eligible superannuation fund.

"(18) For the purposes of this Subdivision, where the Commissioner is of the
opinion that a particular superannuation pension:

   (a)  is not, apart from this subsection, payable from an eligible
        superannuation fund; and

   (b)  is, in effect, funded from an eligible superannuation fund; the
        superannuation pension shall be treated as if it were payable from
        that eligible superannuation fund.".