Commonwealth Numbered Regulations

INCOME TAX REGULATIONS (AMENDMENT) 1998 No. 14 - REG 9

9.1 Omit the regulation, substitute:

"Subdivision 3A-Eligible termination payments
(records to be kept) Payer must give taxpayer ETP pre-payment statement

"99. (1) Before an ETP is made in respect of a taxpayer, the payer must give
to the taxpayer or an agent of the taxpayer an ETP pre-payment statement.

"(2) However, the payer does not have to give the taxpayer an ETP pre-payment
statement if:

   (a)  the payer is:

        (i)    a regulated superannuation fund or an approved deposit fund;
               and

        (ii)   allowed, under the Superannuation Industry (Supervision) Act 
               1993 , to transfer or roll-over the benefit without the consent
               of the taxpayer; or

   (b)  the payer is:

        (i)    a retirement savings account provider; and

        (ii)   allowed, under the Retirement Savings Accounts Act 1997, to
               transfer or roll-over the benefit without the consent of the
               taxpayer; or

   (c)  the payment is a death benefit; or

   (d)  the payment is of a kind mentioned in paragraph (a) or (jaa) of the
        definition of 'eligible termination payment' in subsection 27A (1) of
        the Act, and is:

        (i)    not more than $5000; or

        (ii)   a CGT exempt component; or

   (e)  the payer has received from the taxpayer or an agent of the taxpayer
        authority to make the payment and payment instructions in accordance
        with regulation 99E. Contents of ETP pre-payment statement

"99A. (1) An ETP pre-payment statement must set out at least the following
information:

   (a)  the name, business address and contact telephone number of the payer;

   (b)  the name, contact address last known to the payer, and date of birth
        (if known), of the taxpayer;

   (c)  the amount, or notional amount, of the ETP that is payable to the
        taxpayer;

   (d)  the amounts, or the notional amounts, of so much of the ETP as
        comprises each of the following:

        (i)    the preserved benefits;

        (ii)   the restricted non-preserved benefits;

        (iii)  the unrestricted non-preserved benefits;

   (e)  an explanation of the effect of the classification of amounts, or
        notional amounts, under paragraph (d) that:

        (i)    are available to be taken in cash (if any);

        (ii)   can be rolled-over (if any);

        (iii)  must be rolled-over (if any);

   (f)  the amounts, or the notional amounts, of so much of the ETP as
        comprises each of the following:

        (i)    each component mentioned in section 27AA of the Act;

        (ii)   each element mentioned in section 27AB of the Act;

   (g)  the commencement date of the eligible service period;

   (h)  the number of pre-July 83 days, and post-June 83 days, in the eligible
        service period, as calculated by the payer to the date mentioned in
        subregulation (3);

   (i)  the amount, or notional amount, of the 15 February 1990 roll-over
        balance (if known);

   (j)  the date in relation to which the information given under paragraphs
        (a) to (i) was, or is expected to be, correct;

   (k)  the date when the ETP pre-payment statement is issued.

"(2) If an amount referred to in subregulation (1) is nil, the payer does not
have to set out that amount in the ETP pre-payment statement.

"(3) For subregulation (1), 'notional amount' means an amount calculated by
the payer to a particular date and may include projected figures. Taxpayer to
give payer instructions

"99B. (1) The ETP pre-payment statement given under regulation 99 must also
include a request that the taxpayer give payment instructions in accordance
with regulation 99E to the payer within 30 days after the statement is issued
or a shorter time reasonably required by the payer.

"(2) The ETP pre-payment statement may include a statement about how, if no
instructions are received, the payer will deal with the payment.

"(3) For subregulation (1), a shorter time may reasonably be required if:

   (a)  both:

        (i)    the payment is of a kind mentioned in paragraph (a) of the
               definition of 'eligible termination payment' in subsection 27A
               (1) of the Act; and

        (ii)   an agreement, including an employment contract or award,
               between the payer and the taxpayer provides that a payment
               should be made in a shorter time; or

   (b)  the payer considers it is in the taxpayer's best interests.
        Instructions to make a payment

"99C. (1) Subject to subregulation (2), a payer who has received payment
instructions in accordance with regulation 99E must comply with those
instructions.

"(2) Nothing in subregulation (1) is taken to require a payer to do anything
in breach of the requirements of:

   (a)  a law of the Commonwealth, a State or a Territory; or

   (b)  the terms of any agreement between the payer and the taxpayer. [NOTE:
        For paragraph 99C (2) (a), the following are examples of Commonwealth
        laws:

   (a)  Subdivision AA of Division 2 of Part III of the Income Tax  Assessment
        Act 1936 ;

   (b)  Part 4 of the Retirement Savings Accounts Regulations;

   (c)  Part 6 of the Superannuation Industry (Supervision) Regulations.]
        Payer to give receiving fund an ETP roll-over statement

"99D. (1) A payer must give to the receiving fund, directly or in accordance
with payment instructions under regulation 99E, within 7 days after the
roll-over, an ETP roll-over statement setting out at least the following
information:

   (a)  the taxpayer's name and date of birth (if known);

   (b)  the contact address of the taxpayer last known to the payer;

   (c)  the taxpayer's tax file number, if required or permitted under
        subsection 299M (2) or 299N (2) of the Superannuation Industry 
        (Supervision) Act 1993 , or subsection 138 (2) of the Retirement 
        Savings Accounts Act 1997 ;

   (d)  the name and contact telephone number of the payer;

   (e)  the name and address of the receiving fund;

   (f)  the amount paid to the receiving fund;

   (g)  the amounts of the preserved benefits, restricted non- preserved
        benefits and unrestricted non-preserved benefits in the applied
        amount;

   (h)  the commencement date of the eligible service period;

   (i)  the number of pre-July 83 days and post-June 83 days in the eligible
        service period;

   (j)  subject to regulation 99F, the amount of each tax component of the
        roll-over payment mentioned in subparagraph 27D (1) (b) (iii) of the
        Act;

   (k)  the amount of the 15 February 1990 roll-over balance (if known);

   (l)  whether, in accordance with regulation 99G, the applied amount relates
        to a pre-1 July 1994 pension or annuity;

   (m)  the name, telephone number and address of the taxpayer's agent, if the
        taxpayer asks that this information be included.

"(2) If an amount referred to in subregulation (1) is nil, the payer does not
have to set out that amount in the statement. Payment instructions

"99E. Payment instructions are in accordance with this regulation if they are
sufficient to enable the payer to make an ETP, including, in particular,
information sufficient:

   (a)  to identify the amount and destination of any roll-over payment; and

   (b)  to identify the amount of any cash amount; and

   (c)  to identify the tax components and preservation amounts of each
        roll-over payment and cash amount; and

   (d)  to indicate how any 15 February 1990 roll-over balance (if known) is
        to be distributed. Aggregated amount of pre-July 83 component and
        taxed element of post-July 83 component

"99F. For paragraph 99D (1) (j), the pre-July 83 component and the taxed
element of the post-July 83 component may be shown as an aggregated amount.
Applied amount

"99G. For paragraph 99D (1) (l), an applied amount relates to a pre-1 July
1994 pension or annuity if the applied amount is a commutation ETP and the
pension or annuity that gives rise to the commutation ETP:

   (a)  has a commencement day before 1 July 1994; or

   (b)  has 1 or more underlying commutation ETPs and, for each original
        underlying commutation ETP, the commencement day of the relevant
        pension or annuity is before 1 July 1994. [NOTE: The circumstances in
        which a pension or annuity gives rise to a commutation ETP are set out
        in subsection 27AAAA (4) of the Act.] ETP roll-over statement to be
        given to taxpayer

"99H. The payer must give to the taxpayer or an agent of the taxpayer a copy
of the ETP roll-over statement within 30 days after the roll-over, unless the
payer is of a kind mentioned in paragraph 99 (2) (a) or (b). Records to be
kept

"99I. (1) If instructions of the kind mentioned in paragraph 99 (2) (e) or
regulation 99B are given, the payer and the taxpayer must each keep a copy of
the instructions for 5 years from the date when the instructions were given.

"(2) If a payer gives an ETP roll-over statement to a receiving fund under
regulation 99D, the payer and the receiving fund must each keep a copy of the
statement for 5 years after the date of the roll-over.

"(3) If an ETP, or any part of an ETP, is paid in cash, the payer must give to
the taxpayer and to the Commissioner an ETP group certificate.

"(4) However, the payer does not have to give an ETP group certificate to the
taxpayer or the Commissioner if the payment is:

   (a)  a payment of a kind mentioned in paragraph (a) or (jaa) of the
        definition of 'eligible termination payment' in subsection 27A (1) of
        the Act; and

   (b)  a CGT exempt component. ETP group certificate

"99J. For subregulation 99I (3), the Commissioner may:

   (a)  authorise a form as an ETP group certificate; and

   (b)  approve different forms for use in different cases; and

   (c)  approve forms that provide for different information in different
        cases; and

   (d)  by notice published in the Gazette, specify how an ETP group
        certificate may be electronically transmitted to the Commissioner.
        Contents of ETP group certificates

"99K. (1) An ETP group certificate must set out the following information:

   (a)  the name, address and date of birth of the taxpayer;

   (b)  the name, address and PAYE account number of the payer;

   (c)  the eligible service period, including the number of pre-July 83 and
        post-June 83 days;

   (d)  the date when the payment is made;

   (e)  the date when the ETP group certificate is issued;

   (f)  whether the payment is a death benefit and, if so, whether the
        taxpayer is a dependant of the deceased, or a trustee of the estate of
        the deceased;

   (g)  the cash amount of the ETP;

   (h)  the amount of each component of the cash amount;

   (i)  the assessable amount;

   (j)  the taxpayer's tax file number, if the payer has it for taxation
        purposes;

   (k)  the amount of tax instalments deducted from the ETP.

"(2) For paragraph (1) (i), the assessable amount:

   (a)  is nil if the ETP is a death benefit that is paid to a dependant of
        the deceased; or

   (b)  in any other case-is worked out by:

        (i)    adding together the pre-July 83 component and the concessional
               component; and

        (ii)   calculating 5% of that sum; and

        (iii)  adding the figure calculated in subparagraph (ii) to the
               post-June 83 component and the non-qualifying component. Who
               has authority to sign forms

"99L. (1) If a payer is required by this Subdivision to give a form to a
person, the form must be signed and dated by the payer on the day when the
form is issued to the person.

"(2) For subregulation (1), the payer may give another person written
authorisation to sign and date forms.

"(3) An authorisation given under subregulation (2) must:

   (a)  specify the date when the authorisation starts; and

   (b)  be kept for 5 years from the date when the authorisation ceases to
        have effect.

"(4) If the name of the authorised person appears on the form, the form is
taken to be signed by the payer unless it is proved that the form was issued
without authority. Electronic transmission and storage of forms

"99M. (1) Any information that is required by this Subdivision to be given to
a person may be transmitted electronically.

"(2) Any information that is required by this Subdivision to be kept may be
kept electronically.".