Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992 - SECT 42

42. After section 27AB of the Principal Act the following section is inserted:
ETP-retained amounts (Section applies if ETP made)

"27AC.(1) This section applies if an ETP is made in relation to a taxpayer.
(Retained amounts)

"(2) For the purposes of this Subdivision:

   (a)  the retained amount of the ETP is so much of the ETP as was not
        rolled-over; and

   (b)  the retained amount of a concessional component of theETP is so much
        of the concessional component as was notrolled-over; and

   (c)  the retained amount of the undeducted contributions in relation to the
        ETP is so much of the undeducted contributions as was not rolled-over;
        and

   (d)  the retained amount of the pre-July 83 component of the ETP is
        whichever is the lesser of the following amounts:

        (i)    the amount worked out using the formula:
    Retained   Retained       Non-qualifying

    amount  -  amount of   -  component   -  Excessive   x   Pre-July 83

    of ETP     concessional   of ETP         component       Total period

               component of                  of ETP

ETP where:
'Pre-July 83' is the number of whole days (if any) in the eligible service
period that occurred before 1 July 1983;
'Total period' is the number of whole days in the eligible service period;

        (ii)   the amount represented by the following component in
               subparagraph (i), reduced by the retained amount of the
               undeducted contributions:
    Retained   Retained       Non-

    amount  -  amount of   -  qualifying  -  Excessive   x   ; and

    of ETP     concessional   component      component

               component of   of ETP         of ETP

ETP

   (e)  the retained amount of the post-June 83 component is the retained
        amount of the ETP, reduced by:

        (i)    the retained amount of the concessional component of the ETP;
               and

        (ii)   the retained amount of the undeducted contributions in relation
               to the ETP; and

        (iii)  the non-qualifying component of the ETP; and

        (iv)   the excessive component of the ETP; and

        (v)    the retained amount of the pre-July 83 component of the ETP.
               (Commissioner may increase subparagraph (2)(d)(i) amount)

"(3) The Commissioner may increase the amount calculated under subparagraph
(2)(d)(i) if the Commissioner considers it appropriate to do so having regard
to the following matters:

   (a)  if the ETP relates to employment in which the taxpayer was engaged on
        30 June 1983-the amount of an ETP that could, in the Commissioner's
        opinion, reasonably be expected to have been made in relation to the
        taxpayer in consequence of the termination of that employment if that
        employment had been terminated on that date;

   (b)  if the ETP relates to membership of the taxpayer of a superannuation
        fund on 30 June 1983-the amount of an ETP that could, in the
        Commissioner's opinion, reasonably be expected to have been made in
        relation to the taxpayer from the fund in consequence of the
        termination of the taxpayer's membership of the fund if that
        membership had been terminated on that date;

   (c)  any previous application in relation to the taxpayer of:

        (i)    this subsection; or

        (ii)   subsection 27AA(2) as in force at any time before the
               commencement of section 1 of the Taxation Laws Amendment Act
               (No. 6) 1992; or

        (iii)  subsection 27B(2) as in force at any time before the
               commencement of section 1 of the Taxation Laws Amendment
               (Superannuation) Act 1989;

   (d)  such other matters as the Commissioner considers relevant. (Taxed
        element of retained amount of post-June 83 component)

"(4) For the purposes of this Subdivision, the taxed element of the retained
amount of the post-June 83 component of the ETP is the retained amount of the
post-June 83 component, reduced by the untaxed element of the retained amount
of the post-June 83 component. (Untaxed element of retained amount of
post-June 83 component)

"(5) For the purposes of this Subdivision, the untaxed element of the retained
amount of the post-June 83 component is the untaxed element of the post-June
83 component, reduced by so much of that element as has been rolled-over.
(Increased subparagraph (2)(d)(i) amount-further reduction of subsection (5)
amount)

"(6) If, under subsection (3), the Commissioner increases the amount
calculated under subparagraph (2)(d)(i) in relation to an ETP, the amount
calculated under subsection (5) is to be further reduced:

   (a)  if the amount of the increase does not exceed the amount calculated
        under subsection (5)-by the amount of the increase; or

   (b)  if the amount of the increase exceeds the amount calculated under
        subsection (5)-to 0. (Retained amounts where subsection 27AA(3)
        applies)

"(7) If subsection 27AA(3) applies in relation to an ETP, subsection (2) of
this section has effect as if the amounts calculated in relation to the ETP
under paragraphs (2)(d) and (e) were both 0.".