Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992 - SECT 4

4. Section 82AAC of the Principal Act is amended by omitting subsections (2)
and (2A) and substituting the following subsections:

"(2) Subject to subsection (2D) (which deals with elective deduction limits),
the total of the deductions allowable under subsection (1) for contributions
made by a taxpayer, or by a taxpayer and one or more associates of the
taxpayer, in a year of income in respect of a particular employee must not
exceed the employee's deduction limit for the year of income (worked out under
subsection (2A)).

"(2A) An employee's deduction limit for a year of income is worked out:

   (a)  by identifying the day in the year of income, or the last day in the
        year of income, on which the taxpayer, or any of the associates of the
        taxpayer, made a contribution in respect of the employee, where a
        deduction would have been allowable to the taxpayer, or to the
        associate, under subsection (1) for that contribution (assuming
        subsection (2) had not been enacted); and

   (b)  by working out the age reached by the employee as at the end of that
        day; and

   (c)  if the year of income is the 1994-95 year of income-by applying the
        following table:
         Age in years           Deduction limit

           under 35                 $ 9,000

           35 to 49                 $25,000

         50 and over                $62,000              ; and


   (d)  if the year of income is a later year of income-by applying that table
        subject to the indexation arrangements set out in subsection (2B).

"(2B) The table in subsection (2A) applies for the 1995-96 year of income or a
later year of income as if each indexable amount were replaced by the amount
worked out using the formula:
             Indexation factor   x   Previous indexable amount
where:
'Indexation factor' means the indexation factor for the year of income worked
out under section 159SG;
'Previous indexable amount' means the indexable amount concerned for the
previous year of income.

"(2C) In subsection (2B):
'indexable amount' means:

   (a)  an amount of $9,000, $25,000 or $62,000 specified in the table in
        subsection (2A); or

   (b)  if any such amount has previously been altered under subsection
        (2B)-the altered amount.

"(2D) If:

   (a)  at all times during so much of a year of income as occurred when a
        taxpayer was an employer, 10 or more employee positions under the
        taxpayer are filled by employees of the taxpayer; and

   (b)  apart from subsection (2) and this subsection, deductions are
        allowable to the taxpayer, or to one or more associates of the
        taxpayer, under subsection (1) for contributions made in the year of
        income in respect of at least 10 of those positions; and

   (c)  the taxpayer elects that this subsection is to apply to the taxpayer
        for the year of income; then, in spite of subsection (2), the total of
        the deductions allowable under subsection (1) in respect of
        contributions made by the taxpayer, or by the taxpayer and one or more
        of the associates of the taxpayer, in the year of income in respect of
        all of the employees of the taxpayer must not exceed:

   (d)  if the year of income is the 1994-95 year of income-the amount
        calculated using the formula:
            Full-year employee   x   $25,000

positions where:
'Full-year employee positions' means the number of employee positions under
the employer which satisfy the following conditions:

        (i)    the employee positions were filled by employees of the taxpayer
               at all times during so much of the year of income as occurred
               when the taxpayer was an employer;

        (ii)   apart from subsection (2) and this subsection, deductions are
               allowable to the taxpayer, or to one or more associates of the
               taxpayer, under subsection (1) for contributions made in the
               year of income in respect of the employees who filled those
               positions; or

   (e)  if the year of income is a later year of income-the amount calculated
        using that formula subject to the indexation arrangements set out in
        subsection (2E).

"(2E) The formula in subsection (2D) applies for the 1995-96 year of income or
a later year of income as if the indexable amount were replaced by the amount
worked out using the formula:
         Indexation factor   x   Previous indexable amount
where:
'Indexation factor' means the indexation factor for the year of income worked
out under section 159SG;
'Previous indexable amount' means the indexable amount for the previous year
of income.

"(2F) In subsection (2E):
'indexable amount' means:

   (a)  an amount of $25,000 specified in the formula in subsection (2D); or

   (b)  if that amount has previously been altered under subsection (2E)-the
        altered amount.

"(2G) An election by a taxpayer under subsection (2D) must be made before:

   (a)  the date of lodgment of the taxpayer's return of income for the year
        of income to which the election relates; or

   (b)  such later date as the Commissioner allows.

"(2H) For the purposes of subsection (2D), if:

   (a)  at a particular time ('cessation time'), an employee of an employer
        ceases to fill an employee position under the employer; and

   (b)  at a later time, the employee position is filled by another employee
        of the employer; and

   (c)  the period:

        (i)    beginning at the cessation time; and

        (ii)   ending at that later time; does not exceed 3 months; the
               employee position is taken to have been filled by an employee
               of the employer at all times during that period.".