Superannuation Legislation Amendment (Simplification) Act 2007

No. 15, 2007

Compilation No. 3

Compilation date:   5 March 2016

Includes amendments up to: Act No. 126, 2015

Registered:    17 May 2016

 

About this compilation

This compilation

This is a compilation of the Superannuation Legislation Amendment (Simplification) Act 2007 that shows the text of the law as amended and in force on 5 March 2016 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Selfrepealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

4 Repeals disregarded for the purposes of dependent provisions

Schedule 1—Consequential amendments etc.

Part 1—Main consequential repeals

Income Tax Assessment Act 1936

Part 2—Other consequential amendments etc.

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

Family Law Act 1975

Fringe Benefits Tax Assessment Act 1986

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Parliamentary Superannuation Act 2004

Pooled Development Funds Act 1992

Remuneration and Allowances Act 1990

Retirement Savings Accounts Act 1997

Seafarers Rehabilitation and Compensation Act 1992

Small Superannuation Accounts Act 1995

Social Security Act 1991

Superannuation Contributions Tax (Assessment and Collection) Act 1997

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

Superannuation (Government Cocontribution for Low Income Earners) Act 2003

Superannuation Guarantee (Administration) Act 1992

Superannuation Industry (Supervision) Act 1993

Superannuation (Productivity Benefit) Act 1988

Taxation Administration Act 1953

Taxation (Interest on Overpayments and Early Payments) Act 1983

Veterans’ Entitlements Act 1986

Part 3—Repeal of entire Act

Income Tax (Superannuation Payments Withholding Tax) Act 2002

Part 4—Application

Schedule 2—Small business relief for CGT events

Income Tax Assessment Act 1997

Schedule 3—Other amendments

Bankruptcy Act 1966

Child Support (Registration and Collection) Act 1988

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Superannuation Guarantee (Administration) Act 1992

Superannuation Industry (Supervision) Act 1993

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

Superannuation (Unclaimed Money and Lost Members) Act 1999

Taxation Administration Act 1953

Schedule 4—Technical corrections

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Taxation Administration Act 1953

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

An Act to amend the law relating to taxation, superannuation, social security and veterans’ entitlements, and for related purposes

1  Short title

  This Act may be cited as the Superannuation Legislation Amendment (Simplification) Act 2007.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 4 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

15 March 2007

2.  Schedule 1

Immediately after the commencement of Schedule 1 to the Tax Laws Amendment (Simplified Superannuation) Act 2007.

15 March 2007

3.  Schedule 2

The later of:

(a) at the same time as the provision(s) covered by table item 1; and

(b) immediately after the commencement of the Tax Laws Amendment (2006 Measures No. 7) Act 2007.

12 April 2007

(paragraph (b) applies)

4.  Schedule 3 item 1

The later of:

(a) 1 July 2007; and

(b) immediately after the start of the day on which the Bankruptcy Legislation Amendment (Superannuation Contributions) Act 2007 receives the Royal Assent.

However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur.

1 July 2007

(paragraph (a) applies)

5.  Schedule 3 items 2 and 3

1 July 2007.

 

1 July 2007

 

6.  Schedule 3 items 4 to 51

At the same time as the provision(s) covered by table item 1.

15 March 2007

7.  Schedule 3 items 52 and 53

The day on which this Act receives the Royal Assent.

15 March 2007

7.  Schedule 3 item 54

1 July 2007.

 

1 July 2007

 

8.  Schedule 3 items 55 to 66

At the same time as the provision(s) covered by table item 1.

15 March 2007

9. Schedule 4, items 1 to 9

At the same time as the provision(s) covered by table item 1.

15 March 2007

10. Schedule 4, item 10

The later of:

(a) immediately after the commencement of item 2 of Schedule 7 to the Tax Laws Amendment (2006 Measures No. 7) Act 2007; and

(b) immediately after the commencement of item 25 of Schedule 1 to the Tax Laws Amendment (Simplified Superannuation) Act 2007.

12 April 2007

(paragraph (a) applies)

11. Schedule 4, item 11

At the same time as the provision(s) covered by table item 1.

15 March 2007

12. Schedule 4, item 12

At the same time as item 14 in Schedule 4 to the Tax Laws Amendment (Simplified Superannuation) Act 2007.

15 March 2007

Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

 (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

4  Repeals disregarded for the purposes of dependent provisions

  If the operation of a provision (the subject provision) of any Act or legislative instrument made under any Act depends to any extent on an Act, or a provision of an Act, that is repealed by this Act, the repeal is disregarded so far as it affects the operation of the subject provision.

Schedule 1Consequential amendments etc.

Part 1Main consequential repeals

Income Tax Assessment Act 1936

1  Section 6E

Repeal the section.

2  Sections 26AC, 26AD and 26AFB

Repeal the sections.

3  Sections 27A, 27AAAA, 27AAA, 27AAB, 27AA, 27AB, 27AC, 27ACA, 27ACB, 27B, 27C, 27CAA, 27CAB, 27CA, 27CB, 27CC, 27CD, 27CE, 27D, 27E, 27F, 27G and 27GA

Repeal the sections.

4  Sections 27HA and 27J

Repeal the sections.

5  Subdivisions AA and AB of Division 3 of Part III

Repeal the Subdivisions.

6  Division 14 of Part III

Repeal the Division.

7  Subdivisions AAA, AAB and AACA of Division 17 of Part III

Repeal the Subdivisions.

8  Part IX

Repeal the Part.

Part 2Other consequential amendments etc.

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

9  Subsection 9(2)

Repeal the subsection, substitute:

 (2) However, if a person is entitled to a tax offset under subsection 30120(2) of the Income Tax Assessment Act 1997 for a year of income, the person’s taxable income for the year of income is the amount worked out under subsection (1), reduced by the amount mentioned in subsection 30120(3) of that Act for the person for the year.

Family Law Act 1975

10  Section 90ACA

Repeal the section, substitute:

90ACA  This Part not to apply to certain annuities

  The powers of the court under this Part do not apply to superannuation annuities (within the meaning of the Income Tax Assessment Act 1997).

11  Section 90MD (definition of eligible annuity)

Repeal the definition.

12  Section 90MD (paragraph (e) of the definition of eligible superannuation plan)

Repeal the paragraph, substitute:

 (e) a superannuation annuity (within the meaning of the Income Tax Assessment Act 1997).

13  Subsection 90MQ(1)

Omit “the ETP threshold”, substitute “the member spouse’s low rate cap amount for the income year in which the declaration time occurs”.

Note: The heading to section 90MQ is altered by omitting “ETP threshold” and substituting “low rate cap amount”.

14  Subsection 90MQ(3) (definition of ETP threshold)

Repeal the definition.

15  Subsection 90MQ(3)

Insert:

low rate cap amount has the meaning given by the Income Tax Assessment Act 1997 (disregarding subsection 307345(2) of that Act and section 307345 of the Income Tax (Transitional Provisions) Act 1997).

16  Subsection 90MZ(3)

Omit “within the meaning of section 267 of the Income Tax Assessment Act 1936”, substitute “(within the meaning of the Income Tax Assessment Act 1997)”.

Fringe Benefits Tax Assessment Act 1986

17  Subparagraph 58PB(4)(c)(v)

Omit “an eligible termination payment (within the meaning of section 27A of the Income Tax Assessment Act 1936)”, substitute “an employment termination payment (within the meaning of the Income Tax Assessment Act 1997)”.

18  Subsection 136(1) (subparagraph (j)(i) of the definition of fringe benefit)

Omit “(as defined by subsection 6(1) of the Income Tax Assessment Act 1936) that the person making the contribution had reasonable grounds for believing was a complying superannuation fund (as defined by subsection 267(1) of the Income Tax Assessment Act 1936)”, substitute “(as defined by the Income Tax Assessment Act 1997) that the person making the contribution had reasonable grounds for believing was a complying superannuation fund (as defined by that Act)”.

19  Subsection 136(1) (subparagraph (j)(ii) of the definition of fringe benefit)

Omit “nonresident superannuation fund (within the meaning of section 6E of the Income Tax Assessment Act 1936)”, substitute “foreign superannuation fund (within the meaning of the Income Tax Assessment Act 1997)”.

20  Subsection 136(1) (paragraphs (k), (ka) and (kb) of the definition of fringe benefit)

Repeal the paragraphs, substitute:

 (k) a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or

 (l) a payment covered by section 26AF or 26AFA of the Income Tax Assessment Act 1936; or

 (la) an early retirement scheme payment (within the meaning of the Income Tax Assessment Act 1997); or

 (lb) a genuine redundancy payment (within the meaning of the Income Tax Assessment Act 1997); or

 (lc) an employment termination payment (within the meaning of the Income Tax Assessment Act 1997); or

 (ld) a payment that would be an employment termination payment (within the meaning of the Income Tax Assessment Act 1997) apart from paragraph 82130(1)(b) of that Act; or

 (le) any of the following payments, if they would be employment termination payments (within the meaning of the Income Tax Assessment Act 1997) apart from paragraph 82130(1)(b) and section 82135 of that Act:

 (i) an unused annual leave payment (within the meaning of that Act);

 (ii) an unused long service leave payment (within the meaning of that Act);

 (iii) a payment covered by Subdivision 83D (Foreign termination payments) of that Act;

 (iv) a payment covered by paragraph 82135(g) of that Act;

 (v) a payment of an annuity, or a supplement, covered by section 27H of the Income Tax Assessment Act 1936; or

21  Subsection 136AB(1)

Omit “subsection 267(1) of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

Income Tax Assessment Act 1936

22  Subsection 6(1) (paragraph (d) of the definition of assessment)

Omit “a fund or unit trust referred to in paragraph (a), (b) or (c) of the definition of eligible entity in subsection 267(1)”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

23  Subsection 6(1)

Insert:

Australian superannuation fund has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

24  Subsection 6(1)

Insert:

complying approved deposit fund has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

25  Subsection 6(1)

Insert:

complying superannuation fund has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

26  Subsection 6(1)

Insert:

employment termination payment has the same meaning as in the Income Tax Assessment Act 1997.

27  Subsection 6(1) (definition of foreign superannuation fund)

Repeal the definition, substitute:

foreign superannuation fund has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

28  Subsection 6(1) (paragraphs (d), (e) and (f) of the definition of full selfassessment taxpayer)

Repeal the paragraphs, substitute:

 (d) the trustee of a complying approved deposit fund or a noncomplying approved deposit fund in relation to the current year;

 (e) the trustee of a complying superannuation fund or a noncomplying superannuation fund in relation to the current year;

 (f) the trustee of a pooled superannuation trust in relation to the current year.

29  Subsection 6(1)

Insert:

noncomplying approved deposit fund has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

30  Subsection 6(1)

Insert:

noncomplying superannuation fund has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

31  Subsection 6(1) (definition of nonresident superannuation fund)

Repeal the definition.

32  Subsection 6(1)

Insert:

pooled superannuation trust has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

33  Subsection 6(1) (definition of resident superannuation fund)

Repeal the definition.

34  Subsection 6(1)

Insert:

superannuation fund for foreign residents has the meaning given by subsection 9951(1) of the Income Tax Assessment Act 1997.

35  Subsection 6(1)

Insert:

superannuation lump sum has the same meaning as in the Income Tax Assessment Act 1997.

36  Subsection 6(1) (definition of withholding tax)

Repeal the definition, substitute:

withholding tax has the same meaning as in the Income Tax Assessment Act 1997.

37  Subsection 6AB(1)

Omit “eligible termination payments as defined in subsection 27A(1)”, substitute “superannuation lump sums and employment termination payments”.

38  Subsection 6AB(1)

Omit “section 26D, 27CAA, 102AAZD, 456, 457, 459A or 529”, substitute “section 26D, 102AAZD, 456, 457, 459A or 529 of this Act, or section 30570 of the Income Tax Assessment Act 1997”.

39  Subsection 6AB(1A)

Omit “net previous income referred to in subsection 288A(2)”, substitute “an amount worked out under section 295325 of the Income Tax Assessment Act 1997”.

40  Subsection 6AB(1B)

Omit “net previous income referred to in subsection 288B(2)”, substitute “an amount worked out under section 295330 of the Income Tax Assessment Act 1997”.

41  After subsection 6AB(1B)

Insert:

 (1C) A reference in this Act to foreign income includes a reference to an amount included in assessable income under:

 (a) Division 301 of the Income Tax Assessment Act 1997 in its application under section 3015 of the Income Tax (Transitional Provisions) Act 1997; or

 (b) Division 302 of the Income Tax Assessment Act 1997 in its application under section 3025 of the Income Tax (Transitional Provisions) Act 1997.

42  Subparagraphs 23AF(17)(aa)(i) and (ii)

Repeal the subparagraphs, substitute:

 (i) is included in assessable income under Division 82, section 83295 or Division 301, 302, 304 or 305 of the Income Tax Assessment Act 1997; or

 (ii) is included in assessable income under Division 82 of the Income Tax (Transitional Provisions) Act 1997; or

 (iii) is mentioned in paragraph 82135(e), (f), (g), (i) or (j) of the Income Tax Assessment Act 1997; or

 (iv) is an amount transferred to a fund, if the amount is included in the assessable income of the fund under section 295200 of the Income Tax Assessment Act 1997; or

43  Subsection 23AF(17A) (paragraph (aa) of the definition of Notional gross tax)

Omit “an exempt resident foreign termination payment (within the meaning of Subdivision AA of Division 2)”, substitute “a payment covered by section 83240 or 30565 of the Income Tax Assessment Act 1997”.

44  Subsection 23AF(17C)

Omit “any exempt resident foreign termination payment (within the meaning of Subdivision AA of Division 2) that related to the termination of qualifying service (within the meaning of that Division)”, substitute “any payment covered by section 83240 or 30565 of the Income Tax Assessment Act 1997 in relation to qualifying service”.

45  Subsection 23AG(3) (paragraph (aa) of the definition of Notional gross tax)

Omit “an exempt resident foreign termination payment (within the meaning of Subdivision AA of Division 2)”, substitute “a payment covered by section 83240 or 30565 of the Income Tax Assessment Act 1997”.

46  Subsection 23AG(5)

Omit “any exempt resident foreign termination payment (within the meaning of Subdivision AA of Division 2)”, substitute “any payment covered by section 83240 or 30565 of the Income Tax Assessment Act 1997”.

47  Subsection 23AG(7) (paragraphs (a) and (b) of the definition of foreign earnings)

Repeal the paragraphs, substitute:

 (a) is included in assessable income under Division 82 or Subdivision 83295 or Division 301, 302, 304 or 305 of the Income Tax Assessment Act 1997; or

 (b) is included in assessable income under Division 82 of the Income Tax (Transitional Provisions) Act 1997; or

 (c) is mentioned in paragraph 82135(e), (f), (g), (i) or (j) of the Income Tax Assessment Act 1997; or

 (d) is an amount transferred to a fund, if the amount is included in the assessable income of the fund under section 295200 of the Income Tax Assessment Act 1997.

48  Subsection 24AYA(1)

Omit “section 82AAC”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

49  Subsection 24AYA(3)

Omit “dependants”, substitute “SIS dependants”.

50  Subsection 24AYA(7)

Omit “section 82AAC”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

51  Paragraph 26AF(1)(aa)

After “section 26AFB”, insert “(as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)”.

52  Subsection 26AF(2)

After “section 26AFB”, insert “(as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)”.

53  Subsection 26AF(4)

After “section 26AFB of this Act”, insert “(as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)”.

54  Paragraph 26AFA(1)(aa)

After “section 26AFB”, insert “(as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)”.

55  Subsection 26AFA(3)

After “section 26AFB”, insert “(as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)”.

56  Subsection 26AFA(5)

After “section 26AFB of this Act”, insert “(as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)”.

57  Subsection 26AH(6A)

Omit “(within the meaning of Part IX)”.

58  Paragraph 26AH(7)(b)

Repeal the paragraph, substitute:

 (b) the eligible policy is held by the trustee of:

 (i) a complying superannuation fund; or

 (ii) a complying approved deposit fund; or

 (iii) a pooled superannuation trust; or

59  Subdivision AA of Division 2 of Part III (heading)

Repeal the heading, substitute:

Subdivision AANonsuperannuation annuities etc.

60  Subsection 27H(1)

Omit “subsection (1A) and”.

61  Subsection 27H(1A)

Repeal the subsection.

62  Paragraphs 27H(3A)(a) and (b)

Repeal the paragraphs.

63  Subsection 27H(4)

Insert:

agreement means any agreement, arrangement or understanding whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.

64  Subsection 27H(4) (definition of annuity)

Repeal the definition, substitute:

annuity means an annuity, a pension paid from a foreign superannuation fund (within the meaning of the Income Tax Assessment Act 1997) or a pension paid from a scheme mentioned in paragraph 2905(c) of that Act, but does not include:

 (a) an annuity that is a qualifying security for the purposes of Division 16E; or

 (b) a superannuation income stream (within the meaning of the Income Tax Assessment Act 1997).

65  Subsection 27H(4)

Insert:

purchase price means:

 (a) in relation to a pension—the sum of:

 (i) contributions made by any person to a foreign superannuation fund to obtain the pension; and

 (ii) so much as the Commissioner considers reasonable of contributions made by any person to a foreign superannuation fund to obtain superannuation benefits including the pension; and

 (b) in relation to an annuity other than a pension—the sum of:

 (i) payments made solely to purchase the annuity; and

 (ii) so much as the Commissioner considers reasonable of payments made to purchase the annuity and to obtain other benefits.

66  Subsection 27H(4)

Insert:

residual capital value, in relation to an annuity, means the capital amount payable on the termination of the annuity.

67  Subsection 27H(4)

Insert:

undeducted purchase price, in relation to an annuity, has the meaning given by section 27A immediately before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007.

68  At the end of section 27H

Add:

 (5) In the definition of purchase price in subsection (4):

 (a) a reference to contributions made by any person to a foreign superannuation fund to obtain a pension does not include a reference to contributions made to a foreign superannuation fund by an employer, or by another person under an agreement to which the employer is a party, for the purpose of providing superannuation benefits for, or for dependants of, an employee of the employer; and

 (b) a reference to payments made to purchase, or solely to purchase, an annuity (other than a pension) does not include a reference to payments made by an employer, or by another person under an agreement to which the employer is a party, to purchase, or solely to purchase, the annuity for, or for dependants of, an employee of the employer.

 (6) For the purposes of subsection (5), in determining whether a person is an employer of another person, treat the holding of an office by the other person as employment of that person.

69  Subparagraph 47A(16)(c)(iv)

Omit “an eligible entity (within the meaning of Part IX)”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

70  Subsubparagraph 47A(18)(d)(ii)(D)

Omit “an eligible entity (within the meaning of Part IX)”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

71  Section 67AAA

Repeal the section.

72  Paragraph 70B(2A)(b)

Repeal the paragraph, substitute:

 (b) segregated current pension assets (as defined in the Income Tax Assessment Act 1997) of a complying superannuation fund.

73  Subsection 73B(1) (definition of annual leave)

Repeal the definition, substitute:

annual leave means leave covered by section 8310 of the Income Tax Assessment Act 1997 (see subsection (1) of that section).

74  Subsection 73B(1) (definition of contributions to superannuation funds)

Omit “section 82AAC”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

75  Subsection 73B(1) (definition of long service leave)

Repeal the definition, substitute:

long service leave means leave covered by Subdivision 83B of the Income Tax Assessment Act 1997 (see section 8370 of that Act).

76  After subsection 73B(20)

Insert:

 (20A) To avoid doubt, subsection (20) applies despite subsection 29010(1) of the Income Tax Assessment Act 1997.

77  Section 90 (definition of net income)

Omit “section 82AAT of this Act”, substitute “section 290150”.

78  Section 90 (definition of partnership loss)

Omit “section 82AAT of this Act”, substitute “section 290150”.

79  Paragraph 92(2A)(b)

Repeal the paragraph, substitute:

 (b) a segregated current pension asset (as defined in the Income Tax Assessment Act 1997) of a complying superannuation fund.

80  Subsection 101A(2)

Omit “section 26AC or 26AD”, substitute “section 8310 or 8380 of the Income Tax Assessment Act 1997”.

81  Subsection 101A(3)

Omit “Where”, substitute “To avoid doubt, if”.

82  Subsection 101A(3)

Omit “Subdivision AA of Division 2 in respect of an eligible termination payment, within the meaning of that Subdivision,”, substitute “Division 82 or 302 of the Income Tax Assessment Act 1997 in respect of a payment”.

83  Subsection 101A(3)

Omit “and shall be deemed to be income to which no beneficiary is presently entitled”.

84  Section 102AAB (paragraph (c) of the definition of resident trust estate)

Omit “an eligible entity (within the meaning of Part IX)”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

85  Subsubparagraph 102AAE(2)(b)(ii)(B)

Omit “an eligible entity (within the meaning of Part IX)”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

86  Paragraph 102AAM(2)(d)

Omit “an eligible entity within the meaning of Part IX”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

87  Subsubparagraph 102AAM(4)(b)(ii)(B)

Omit “an eligible entity (within the meaning of Part IX)”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

88  Subparagraph 102AAZA(a)(iv)

Omit “section 272”, substitute “section 29510 of the Income Tax Assessment Act 1997”.

89  Section 102M (subparagraph (b)(iii) of the definition of exempt entity)

Omit “a complying ADF, or a PST, within the meaning of Part IX”, substitute “a complying approved deposit fund or a pooled superannuation trust”.

90  Section 121AQ (definition of annuity)

Omit “section 27A”, substitute “section 10 of the Superannuation Industry (Supervision) Act 1993”.

91  Section 121AQ (definition of ETP)

Repeal the definition.

92  Section 121AQ

Insert:

superannuation interest has the same meaning as in the Income Tax Assessment Act 1997.

93  Section 121AQ (definition of superannuation pension)

Repeal the definition.

94  Section 121AQ (definition of undeducted contributions)

Repeal the definition.

95  Section 121AQ (definition of undeducted purchase price)

Repeal the definition.

96  Section 121AR (table)

Repeal the table, substitute:

 

Definition

Provision

annuity

121AQ

applicable accounting day

121AM(3) and 121AN(4)

capital reserve adequacy level

121AO(2)

eligible actuary

121AO(3)

embedded value

121AM(1)

demutualise

121AD(1) and (2)

demutualisation method

121AE(3)

demutualisation method 1 to

121AF to 121AL

demutualisation method 7

 

demutualisation resolution day

121AD(3)

first trading day price

121AQ

general insurance business

121AQ

general insurance company

121AB(4)

insurance company

121AB(2)

life insurance business

121AQ

life insurance company

121AB(3)

listed

121AQ

listing period

121AE(6)

mutual affiliate company

121AC

mutual insurance company

121AB(1)

net tangible asset value

121AN(1)

policyholder/member group

121AE(4) and (5)

security

121AO(4)

subsidiary

121AP(1) and (2)

superannuation interest

121AQ

Treasury bond rate

121AO(1)

whollyowned subsidiary

121AP(3)

97  Section 121AT (Table 2, item 11)

Omit:

If the trustee pays an ETP, a superannuation pension or an annuity to the member, the undeducted contributions in relation to the ETP, or undeducted purchase price of the pension or annuity, is increased by the amount worked out using the formula:

substitute:

If the trustee pays a superannuation benefit to the member, the tax free component (within the meaning of the Income Tax Assessment Act 1997) of the superannuation interest (within the meaning of that Act) from which the benefit is paid is increased by the amount worked out using the formula:

98  Paragraph 124ZM(3)(d)

Omit “an eligible entity within the meaning of Part IX”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

99  Subsection 128A(10)

Omit “nonresident superannuation fund”, substitute “foreign superannuation fund”.

100  Subparagraph 128B(3)(jb)(i)

Omit “foreign superannuation fund”, substitute “superannuation fund for foreign residents”.

101  Subsection 128FA(8) (paragraph (b) of the definition of eligible unit holder)

Repeal the paragraph, substitute:

 (b) the trustee (within the meaning of the Income Tax Assessment Act 1997) of a complying superannuation fund that has 50 or more members; or

102  Subsection 128FA(8) (paragraph (d) of the definition of eligible unit holder)

Repeal the paragraph, substitute:

 (d) the trustee (within the meaning of the Income Tax Assessment Act 1997) of a complying approved deposit fund; or

103  Subsection 149A(1)

Omit “subsection 27B(1A) or (3)” (wherever occurring), substitute “section 8265, 8270 or 302145 of the Income Tax Assessment Act 1997”.

Note: The heading to section 149A is altered by omitting “ETP excessive component” and substituting “certain death benefits”.

104  Subparagraph 159GZZZZG(1)(a)(iv)

Omit “an eligible entity within the meaning of Part IX”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

105  Subsection 159ZR(1) (paragraph (a) of the definition of normal taxable income)

Repeal the paragraph, substitute:

 (a) no amount were included in assessable income under Division 82, section 8310 or 8380 or Division 301 or 302 of the Income Tax Assessment Act 1997 or Division 82 of the Income Tax (Transitional Provisions) Act 1997; and

106  Subsection 159ZR(1) (definition of rebated tax)

Repeal the definition, substitute:

rebated tax means the tax payable after the allowance of any tax offset under Division 82, 83, 301 or 302 of the Income Tax Assessment Act 1997, subsection 39235(2) of that Act (which allows some primary producers tax offsets) or Division 82 of the Income Tax (Transitional Provisions) Act 1997, but before the allowance of any other tax offsets or any credits.

107  Subsection 160AAB(5A)

Omit “an eligible entity within the meaning of Part IX”, substitute “a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

108  Subsection 160AF(1A)

Omit “subsection 288A(2)”, substitute “table item 2 in section 295320 of the Income Tax Assessment Act 1997”.

109  Paragraph 160AF(1B)(a)

Omit “a resident superannuation fund in relation to the current year of income includes the fund’s net previous income in respect of previous years of income (as defined by subsection 288A(2))”, substitute “an Australian superannuation fund in relation to the current year of income includes the amount worked out for the fund under section 295325 of the Income Tax Assessment Act 1997”.

110  Subsection 160AF(1C)

Omit “a resident superannuation fund referred to in subsection 288B(2)”, substitute “an Australian superannuation fund referred to in table item 3 in section 295320 of the Income Tax Assessment Act 1997”.

111  Paragraph 160AF(1D)(a)

Omit “a resident superannuation fund in relation to the current year of income includes the fund’s net previous income in respect of previous years of income (as defined by subsection 288B(2))”, substitute “an Australian superannuation fund in relation to the current year of income includes the amount worked out for the fund under section 295330 of the Income Tax Assessment Act 1997”.

112  Paragraph 160AF(6)(b)

Omit “section 27CAA”, substitute “section 30570 of the Income Tax Assessment Act 1997”.

113  Paragraph 160AF(7)(ba)

Omit “section 27CAA”, substitute “section 30570 of the Income Tax Assessment Act 1997”.

Note 1: The heading to section 202DI is altered by omitting “eligible termination payments” and substituting “superannuation benefits”.

Note 2: The heading to section 202DJ is altered by omitting “eligible termination payments” and substituting “superannuation benefits”.

114  Subsection 170(10AA) (before table item 180)

Insert:

174

Section 29525

Commissioner makes an assessment as if an entity were a complying superannuation entity or a pooled superannuation trust for the income year and:

(a) the entity does not become one; or

(b) the Australian Prudential Regulation Authority (APRA) does not receive certain documents about the entity within a specified period

175

Section 29530

Notice under section 342 of the Superannuation Industry (Supervision) Act 1993 or under regulations made for the purposes of that section is revoked, or the decision to give the notice is set aside

176

Subsection 295195(3)

An amount is excluded from the assessable income of a complying superannuation fund or an RSA provider because of the exercise of an option by the trustee or provider

177

Section 295270

Commissioner makes an assessment on the basis of an amount of pre1 July 88 funding credits being anticipated for an income year and:

(a) it becomes clear that those credits will not be available; or

(b) APRA does not receive certain documents within a specified period

178

295490(2)

Deduction is denied because financial assistance funding levy is remitted or there is a refund of an overpayment of the levy

115  Subsection 177EA(15)

After “following provisions”, insert “of the Income Tax Assessment Act 1997”.

116  Paragraphs 177EA(15)(a) and (b)

Repeal the paragraphs, substitute:

 (a) section 295385 (about income from assets set aside to meet current pension liabilities), section 295390 (about income from other assets used to meet current pension liabilities) and 295400 (about income of a PST attributable to current pension liabilities); or

 (b) paragraph 32037(1)(a) (about segregated exempt assets) or paragraph 32037(1)(d) (about income bonds, funeral policies and scholarship plans).

117  Paragraph 202DHA(a)

After “a person has”, insert “on or after 1 July 2007”.

118  Paragraph 202DHA(b)

After “superannuation scheme”, insert “or is an RSA holder”.

119  Paragraph 202DHA(c)

After “superannuation scheme”, insert “or RSA”.

120  Section 202DHA

After “or scheme”, insert “or the RSA provider”.

121  Subsection 202DJ(2) (definition of constitutionally protected superannuation fund)

Omit “Part IX”, substitute “the Income Tax Assessment Act 1997”.

122  Subsection 251S(1A)

Repeal the subsection, substitute:

 (1A) If the taxpayer is entitled to a tax offset under subsection 30120(2) of the Income Tax Assessment Act 1997 for a year of income, paragraph (1)(a) of this section applies as if the taxable income of the taxpayer of the year of income were reduced by the amount mentioned in subsection 30120(3) of that Act for the person for the year.

123  Subsection 262A(4A)

Omit “under Subdivision AAC of Division 17 of Part III as in force immediately before the day on which the Taxation Laws Amendment Act (No. 6) 1992 received the Royal Assent or”.

124  Section 317 (paragraph (a) of the definition of trust)

Repeal the paragraph, substitute:

 (a) an entity in the capacity of trustee (including an entity that manages a trust if there is no trustee); or

125  Paragraph 371(7)(c)

Repeal the paragraph, substitute:

 (c) a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust.

126  Paragraph 459A(3)(c)

Repeal the paragraph, substitute:

 (c) a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust.

127  Paragraph 460(1)(c)

Repeal the paragraph, substitute:

 (c) a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust.

128  Section 470 (definition of resident Part IX entity)

Repeal the definition, substitute:

resident superannuation entity has the meaning given by section 477.

129  Section 470 (paragraph (a) of the definition of trust)

Repeal the paragraph, substitute:

 (a) an entity in the capacity of trustee (including an entity that manages a trust if there is no trustee); or

130  Section 470 (definition of trustee)

Repeal the definition, substitute:

trustee, in relation to a fund that has no trustee, means the person who manages the fund.

131  Section 477

Repeal the section, substitute:

477  Resident superannuation entity

  For the purposes of this Part, a trust is a resident superannuation entity at a particular time if at that time the trust is:

 (a) an Australian superannuation fund; or

 (b) a complying approved deposit fund or a pooled superannuation trust.

Note: The heading to section 477 is altered by omitting “Part IX” and substituting “superannuation”.

132  Paragraph 481(3)(a)

Omit “resident Part IX entity”, substitute “resident superannuation entity”.

133  Subsection 485(6)

Omit “resident Part IX entity”, substitute “resident superannuation entity”.

134  Paragraph 491(2)(c)

Omit “or an eligible Part IX entity”, substitute “, a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust”.

135  Subsection 533B(1)

Omit “(1)”.

136  Paragraph 533B(1)(a)

Omit “an eligible nonresident noncomplying superannuation fund”, substitute “a fund or scheme in relation to which Subdivision 305B of the Income Tax Assessment Act 1997 applies (see section 30555 of that Act)”.

137  Paragraph 533B(1)(c)

Repeal the paragraph, substitute:

 (c) the taxpayer chooses under section 30580 of the Income Tax Assessment Act 1997 that the amount, or part of the amount, is to be treated as assessable income of the complying superannuation fund; and

138  Paragraph 533B(1)(f)

Omit “election”, substitute “choice”.

139  Subsection 533B(2)

Repeal the subsection.

140  Paragraph 603(1)(h)

Omit “Subdivision AA of Division 2 of Part III”, substitute “Division 82, 301, 302, 304 or 305 of the Income Tax Assessment Act 1997, or Division 82 of the Income Tax (Transitional Provisions) Act 1997”.

141  Paragraph 605(11)(c)

Repeal the paragraph, substitute:

 (c) a complying superannuation fund, a noncomplying superannuation fund, a complying approved deposit fund, a noncomplying approved deposit fund or a pooled superannuation trust; or

142  Subsection 5740(1) in Schedule 2D

Omit “section 82AAC”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

143  Subsection 5750(1) in Schedule 2D

Omit “section 82AAC”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

144  Subsection 5770(1) in Schedule 2D

Omit “an eligible termination payment”, substitute “a superannuation lump sum or an employment termination payment”.

Note: The heading to section 5770 in Schedule 2D is replaced by the heading “Treatment of superannuation lump sums and employment termination payments”.

145  Subsection 5770(3) in Schedule 2D

Repeal the subsection, substitute:

 (3) This section does not apply to an early retirement scheme payment (within the meaning of the Income Tax Assessment Act 1997), or a genuine redundancy payment (within the meaning of that Act).

146  Subsection 5770(4) in Schedule 2D

Repeal the subsection.

147  Subparagraph 27225(3)(a)(ii) in Schedule 2F

Omit “foreign superannuation fund”, substitute “superannuation fund for foreign residents”.

148  Subsection 27225(3) in Schedule 2F (notes)

Repeal the notes, substitute:

Note: See subsection 6(1) for the meaning of complying superannuation fund, complying approved deposit fund and superannuation fund for foreign residents.

149  Paragraph 39360(4)(a) in Schedule 2G

Omit “subsection 27B(1A) or (3) (Assessable income to include certain superannuation and kindred payments)”, substitute “section 8265, 8270 or 302145 of the Income Tax Assessment Act 1997 (certain superannuation benefits and employment termination payments)”.

Income Tax Assessment Act 1997

150  Subsection 95(1) (table item 4)

Omit “sections 2955 and 295605”, substitute “sections 2955, 295605 and 320155”.

151  Section 105 (table item headed “eligible termination payments (ETPs)”)

Repeal the item.

152  Section 105 (table item headed “employment”)

Repeal the item, substitute:

employment

 

allowances and benefits in relation to employment or rendering services  


152

employment termination payment ...............

8210
8265
8270

other payments for employment termination .........

83295

return to work payments ......................

153

see accrued leave transfer payments, leave payments, superannuation and sections 8210A and 8210C of the Income Tax (Transitional Provisions) Act 1997

 

153  Section 105 (table item headed “insurance”)

Omit:

life assurance, transfer of contributions by superannuation fund or approved deposit fund to              


275

substitute:

life insurance, transfer of contributions by superannuation fund or approved deposit fund to              


295260

154  Section 105 (table item headed “insurance”)

Omit:

rebates and premiums refunded to a superannuation fund trustee  


279A(1)

substitute:

rebates and premiums refunded to a superannuation fund trustee  

295320 (table item 4)

155  Section 105 (table item headed “leave payments”)

Repeal the item, substitute:

leave payments

 

accrued leave transfer payment .................

155

unused annual leave payment ........................

8310

unused long service leave payment ...............

8380

see employment

 

156  Section 105 (table item headed “superannuation”)

Repeal the item, substitute:

superannuation

 

benefits generally ..........................

Divisions 301 to 306

benefits in breach of legislative requirements ........

Division 304

benefits received from older superannuation funds ....

26AF, 26AFA

complying fund becomes noncomplying, effect of  

295320 (table item 2)

contributions to an approved deposit fund ..........

Subdivisions 295C and 295D

contributions to an RSA ......................

Subdivision 295C

contributions to a superannuation fund ............

Subdivisions 295C and 295D

death benefits .............................

30275
30285
30290
302145

foreign superannuation funds and schemes, benefits from  

30570

member benefits ...........................

30120
30125
30135
30140
Subdivision 301C

foreign fund becoming Australian, effect of .........

295320 (table item 3)

noTFN contributions income ............

295605

returned contributions .......................

290100

trustee’s liability to pay tax ....................

2955(2) and (3)

see insurance

 

157  Section 1110 (table item headed “Government cocontributions”)

Repeal the item.

158  Section 1110 (at the end of the table)

Add:

superannuation

 

benefits from noncomplying funds ........

3055

159  Section 1115 (table item headed “superannuation or related business”)

Repeal the item, substitute:

superannuation and related business

 

approved deposit fund, continuously complying fixed interest, income from 25 May 1988 deposits              

295390 of the Income Tax (Transitional Provisions) Act 1997

approved deposit fund, income from a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993              

295405 (table item 1)

approved deposit fund, nonreversionary bonuses on policies of life assurance              

295335 (table item 1)

pooled superannuation trust, income from constitutionally protected funds              

295335 (table item 2)

pooled superannuation trust, income from current pension liabilities of complying superannuation funds              

295400

pooled superannuation trust, nonreversionary bonuses on policies of life assurance              

295335 (table item 1)

superannuation fund, income from other assets used to meet current pension liabilities              

295390

superannuation fund, income from segregated current pensions assets  

295385

superannuation fund, nonreversionary bonuses on policies of life assurance              

295335 (table item 1)

superannuation fund, regulated, income from a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993              

295405 (table item 1)

160  Section 1155 (after table item headed “dividends”)

Insert:

employment

 

early retirement scheme payment, tax free amount of ...

83170

employment termination payment ...............

8210
8265
8270

foreign termination payment ...................

83235
83240

genuine redundancy payment, tax free amount of .....

83170

unused long service leave payment, pre16/8/78 period  

8380

see superannuation and sections 8210A and 8210C of the Income Tax (Transitional Provisions) Act 1997

 

161  Section 1155 (after table item headed “social security or like payments”)

Insert:

superannuation

 

benefits generally ..........................

Divisions 301 to 306

commutation of income stream, under 25 years .......

3035

death benefits .............................

30260
30265
30270
302140

departing Australia superannuation benefits .........

301175

foreign superannuation funds, lump sum benefits .....

30560
30565
30570

member benefits .................................

30110
30115
30130
301225

release authorities, payments from ...............

30415

rollover superannuation benefits ..........

3065

unclaimed money payment ....................

30620

162  Section 125 (after table item headed “environment”)

Insert:

excess contributions tax

 

no deduction .............................

2675

163  Section 125 (table item headed “interest”)

Omit “67AAA” (first occurring), substitute “2685”.

164  Section 125 (table item headed “interest”)

Omit “67AAA” (second occurring), substitute “2680”.

165  Section 125 (table item headed “superannuation and related business”)

Repeal the item, substitute:

superannuation and related business

 

generally ................................

Part 330

asset disposals ............................

29585

death or disability benefits, deduction for future service element  

295470

death or disability cover, premiums for ............

295465

detriment payments .........................

295485

financial assistance levy ......................

295490(1) (table item 3)

166  Section 125 (table item headed “superannuation—eligible person contributions”)

Repeal the item, substitute:

superannuation—deductibility of contributions

 

generally ......................................

Division 290

contributions for employees etc. .................

Subdivision 290B

contributions to noncomplying funds .......

sections 29010 and 29075

limit on deduction ..........................

2655

no deduction under any other provision of the Act .....

section 29010

personal contributions .......................

Subdivision 290C

167  Section 125 (table item headed “superannuation—employer contributions”)

Repeal the item.

168  Section 125 (table item headed “superannuation guarantee charge”)

Omit “2685”, substitute “29095”.

169  Section 131 (table item headed “annuity”)

Omit “eligible termination payments”, substitute “superannuation”.

170  Section 131 (table item headed “eligible termination payments (ETPs)”)

Repeal the item, substitute:

employment termination

 

employment termination payments ...............

8210
8270

see leave payments, superannuation and sections 8210A and 8210C of the Income Tax (Transitional Provisions) Act 1997

 

171  Section 131 (table item headed “leave payments”)

Repeal the item, substitute:

leave payments

 

unused annual leave payment ........................

8315

unused long service leave payment ...............

8385

see employment termination

 

172  Section 131 (table item headed “rebatable ETP annuity”)

Repeal the item.

173  Section 131 (table item headed “superannuation”)

Repeal the item, substitute:

superannuation

 

generally ................................

Divisions 301 and 302

spouse contributions ........................

Subdivision 290D

death benefits .............................

30275
30285
302145

member benefits .................................

30120
30125
30135
30140
30195
301100
301105
301115

TFN quoted to superannuation or RSA provider after noTFN contributions tax paid              

295675

174  Section 131 (table item headed “superannuation funds”)

Repeal the item.

175  Section 131 (table item headed “termination payments”)

Omit “eligible termination payments”, substitute “employment termination, leave payments and superannuation”.

176  Paragraphs 152(3)(a) and (b)

Repeal the paragraphs, substitute:

 (a) a *superannuation lump sum or an *employment termination payment;

 (b) an *unused annual leave payment or an *unused long service leave payment;

177  Section 205 (table item 8)

Omit “82AAQ”, substitute “290100”.

178  Paragraph 2655(1)(d)

Repeal the paragraph, substitute:

 (d) section 290150 (which is about deductions for personal superannuation contributions).

179  Sections 2675, 2680 and 2685

Repeal the sections, substitute:

2675  Excess contributions tax cannot be deducted

  You cannot deduct under this Act an amount of *excess contributions tax that you pay.

2680  Financing costs on loans to pay superannuation contribution

 (1) You can only deduct under this Act a *financing cost connected with a contribution you make to a *superannuation plan if you can deduct the contribution under Subdivision 290B.

 (2) A financing cost connected with a contribution is expenditure incurred to the extent that it relates to obtaining finance to make the contribution, including:

 (a) interest, and payments in the nature of interest; and

 (b) expenses of borrowing.

2685  Borrowing costs on loans to pay life insurance premiums

 (1) You can only deduct under this Act interest on, or other expenses associated with, money you borrow to pay a premium for a *life insurance policy if:

 (a) the *risk component of the premium received by the insurer is the entire amount of the premium; and

 (b) each amount the insurer is liable to pay under the policy would be included in your assessable income if it were paid.

 (2) The risk component of a premium for a *life insurance policy means the amount of the premium worked out on the basis specified in the regulations.

180  Subsection 28185(3) (table item 5)

Repeal the item, substitute:

5

Subdivision 12C

*Superannuation benefits, *employment termination payments, unused leave payments and annuities

181  Section 5165

Repeal the section.

182  Paragraphs 61570(2)(a) and (b)

Repeal the paragraphs, substitute:

 (a) amounts of *superannuation lump sums or *employment termination payments;

 (b) amounts of *unused annual leave payments or *unused long service leave payments;

183  Paragraph 82135(h)

Omit “paragraph 109(1)(d) of the Income Tax Assessment Act 1936 (which deals with excessive payments to shareholders, directors and *associates);”, substitute “this Act”.

184  Subparagraph 82135(l)(ii)

Omit “Act).”, substitute “Act);”.

185  At the end of section 82135

Add:

 (m) an amount included in your assessable income under Division 13A of Part III of the Income Tax Assessment Act 1936 (which deals with employee share schemes).

186  Paragraph 8510(2)(f)

Omit the paragraph (including the note), substitute:

 (f) contributing to a fund in order to obtain *superannuation benefits for yourself or for your *SIS dependants in the event of your death; or

Note: For deductions for superannuation contributions: see Subdivision 290C.

187  Subsection 8525(1)

Omit “superannuation benefits”, substitute “*superannuation benefits”.

188  Subsection 8675(1)

Omit “superannuation benefits”, substitute “*superannuation benefits”.

189  Section 10960 (table item 8)

Omit “complying ADF or complying PST”, substitute “complying approved deposit fund or pooled superannuation trust”.

190  Section 10960 (table item 8)

Omit “section 306”, substitute “section 29590”.

191  Section 11297 (table item 13)

Omit “section 308”, substitute “section 29585 of the Income Tax (Transitional Provisions) Act 1997”.

192  Section 11297 (table item 14)

Omit “ADF or PST”, substitute “complying approved deposit fund or pooled superannuation trust”.

193  Section 11297 (table item 14)

Omit “section 311”, substitute “section 295100 of the Income Tax (Transitional Provisions) Act 1997”.

194  Section 1181 (note 1)

Omit:

195  Subsection 11820(3) (note)

Repeal the note, substitute:

Note: These rules are modified for complying superannuation funds that become noncomplying and for foreign superannuation funds that become Australian superannuation funds: see Division 295.

196  Subsection 11820(4A)

Omit “net previous income for earlier income years under section 288A or 288B of the Income Tax Assessment Act 1936”, substitute “income from previous years under section 295325 or 295330”.

197  Section 11822

Repeal the section, substitute:

11822  Superannuation lump sums and employment termination payments

  In applying section 11820, treat a *superannuation lump sum or an *employment termination payment that you receive as being included in your assessable income.

198  Section 118320

Omit “segregated current pension asset (as defined in Part IX of the Income Tax Assessment Act 1936)”, substitute “*segregated current pension asset”.

199  Subsection 126210(5) (note 2)

Omit “section 306 of the Income Tax Assessment Act 1936”, substitute “section 29590”.

200  Paragraph 20745(d)

Omit “an eligible entity within the meaning of Part IX of that Act”, substitute “a *complying superannuation fund, a *noncomplying superannuation fund, a *complying approved deposit fund, a *noncomplying approved deposit fund or a *pooled superannuation trust”.

201  Section 20745 (note 1)

Repeal the note.

202  Section 20745 (note 2)

Omit “Note 2”, substitute “Note”.

203  Subparagraph 207110(1)(b)(i)

Repeal the subparagraph, substitute:

 (i) *exempt income under section 295385 (about income from assets set aside to meet current pension liabilities), section 295390 (about income from other assets used to meet current pension liabilities) or section 295400 (about income of a PST attributable to current pension liabilities); or

204  Subparagraph 210170(1)(b)(ii)

Omit “an eligible entity within the meaning of Part IX of the Income Tax Assessment Act 1936”, substitute “a *complying superannuation fund, a *noncomplying superannuation fund, a *complying approved deposit fund, a *noncomplying approved deposit fund or a *pooled superannuation trust”.

205  At the end of section 2905

Add:

 ; (c) an amount transferred to a *complying superannuation fund or an *RSA from a scheme for the payment of benefits in the nature of superannuation upon retirement or death that:

 (i) is not, and never has been, an *Australian superannuation fund or a *foreign superannuation fund; and

 (ii) was not established in Australia; and

 (iii) is not centrally managed or controlled in Australia.

206  Subsection 29060(1) (note)

Omit “and subsection 73B(14) of the Income Tax Assessment Act 1936”.

207  Subsection 290150(2)

After “290160”, insert “(if applicable)”.

208  Section 292390

After “If *excess contributions tax”, insert “or *shortfall interest charge”.

209  Paragraph 292390(a)

After “excess contributions tax”, insert “or shortfall interest charge”.

210  Subparagraph 292390(b)(i)

After “excess contributions tax”, insert “or shortfall interest charge”.

211  Subparagraph 292390(b)(ii)

After “excess contributions tax”, insert “or shortfall interest charge”.

212  Subsection 2955(4) (note)

Omit “Note”, substitute “Note 1”.

213  At the end of subsection 2955(4)

Add:

Note 2: However, Subdivisions 295I and 295J apply to RSA providers that are life insurance companies: see section 320155.

214  At the end of section 29595

Add:

 (4) To avoid doubt, the central management and control of a *superannuation fund is ordinarily in Australia at a time even if that central management and control is temporarily outside Australia for a period of not more than 2 years.

215  After section 295170

Insert:

295173  Exception—trustee contributions

  Item 1 of the table in section 295160 does not include in assessable income a contribution made by an entity that, when the contribution was made, was:

 (a) the trustee of a *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation trust; or

 (b) the trustee of an exempt life assurance fund (within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936).

216  At the end of section 295200

Add:

 (4) This section also applies to an amount transferred from a scheme for the payment of benefits in the nature of superannuation upon retirement or death that:

 (a) is not, and never has been, an *Australian superannuation fund or a *foreign superannuation fund; and

 (b) was not established in Australia; and

 (c) is not centrally managed or controlled in Australia.

217  Paragraph 295460(c)

Omit “perform normal employment duties”, substitute “engage in *gainful employment”.

218  Subsection 295470(2) (paragraph (b) of the definition of future service days)

Omit “perform normal work duties”, substitute “engage in *gainful employment”.

219  Subsection 30415(1)

Repeal the subsection, substitute:

 (1) This section applies to a *superannuation benefit that you receive, paid in relation to a release authority given in relation to you in accordance with section 292410.

220  Section 3055

Omit “, unless”, substitute “if”.

221  Paragraphs 3055(a) and (b)

Repeal the paragraphs, substitute:

 (a) the fund:

 (i) has never been a *complying superannuation fund; or

 (ii) last stopped being a complying superannuation fund for the income year in which 1 July 1995 occurred or a later income year; and

 (b) the fund:

 (i) has never been a *foreign superannuation fund; or

 (ii) last stopped being a foreign superannuation fund for the income year in which 1 July 1995 occurred or a later income year.

222  Section 30555

Before “This Subdivision”, insert “(1)”.

223  At the end of section 30555

Add:

 (2) This Subdivision also applies if you receive a payment, other than a pension payment, from a scheme for the payment of benefits in the nature of superannuation upon retirement or death that:

 (a) is not, and never has been, an *Australian superannuation fund or a *foreign superannuation fund; and

 (b) was not established in Australia; and

 (c) is not centrally managed or controlled in Australia.

 (3) This Subdivision applies to a payment mentioned in subsection (2) from a scheme mentioned in that subsection in the same way as it applies to a *superannuation lump sum from a *foreign superannuation fund.

224  Subsection 30565(1) (note)

Omit “or the lump sum exceeds the vested amount,”.

225  After subsection 30615(1)

Insert:

 (1A) However, this section does not apply to a *rollover superannuation benefit that is transferred from one *superannuation interest in a *superannuation plan to another superannuation interest in the same plan.

Note 1: A superannuation benefit may be paid from one superannuation plan of a superannuation provider to another superannuation plan of the same provider. Such a benefit may be a rollover superannuation benefit: see section 30610.

Note 2: For the treatment of amounts transferred within the same superannuation plan, see subsection 3075(8).

226  Subparagraph 30710(c)(ii)

Omit “Act).”, substitute “Act);”.

227  At the end of section 30710

Add:

 (d) a payment of a pension or an *annuity from a *foreign superannuation fund.

228  At the end of section 3201

Add:

This Division also ensures that life insurance companies that are RSA providers are liable to pay tax on noTFN contributions income.

229  Paragraph 32015(1)(l)

Omit “*taxable contributions made to *RSAs provided by the company”, substitute “contributions made to *RSAs provided by the company that would be included in the company’s assessable income under Subdivision 295C if that Subdivision applied to the company”.

230  Section 32045

Omit “Division 10 of Part IX of the Income Tax Assessment Act 1936”, substitute “section 29585 and 29590”.

231  At the end of section 32045

Add:

Note: See Subdivision 295B of the Income Tax (Transitional Provisions) Act 1997 for rules about cost base for assets owned by superannuation entities at the end of 30 June 1988.

232  Paragraph 320137(3)(a)

Omit “are not *taxable contributions”, substitute “would not be included in the company’s assessable income under Subdivision 295C if that Subdivision applied to the company”.

233  After Subdivision 320D

Insert:

Subdivision 320ENoTFN contributions of life insurance companies that are RSA providers

Guide to Subdivision 320E

320150  What this Subdivision is about

This Subdivision makes Subdivisions 295I and 295J apply to life insurance companies that are RSA providers.

The consequence is that those life insurance companies are liable to pay tax on noTFN contributions income under Subdivision 295I. They may also be entitled to a tax offset under Subdivision 295J.

Table of sections

Operative provisions

320155 Subdivisions 295I and 295J apply to companies that are RSA providers

Operative provisions

320155  Subdivisions 295I and 295J apply to companies that are RSA providers

 (1) Despite subsection 2955(4), Subdivisions 295I and 295J apply to a *life insurance company that is an *RSA provider.

 (2) For the purposes of the application of those Subdivisions to a *life insurance company, a contribution included in the assessable income of the company under paragraph 32015(1)(l) is taken to have been included under Subdivision 295C.

234  Subparagraph 320195(3)(b)(i)

Repeal the subparagraph, substitute:

 (i) that provide *superannuation death benefits, *disability superannuation benefits or temporary disability benefits of a kind referred to in paragraph 295460(c), that are *participating benefits; and

235  Paragraph 320246(1)(a)

Repeal the paragraph, substitute:

 (a) that is held by the trustee of a *complying superannuation fund and provides solely for the discharge of the fund’s liabilities (contingent or not) in respect of *superannuation income stream benefits that are currently payable by the fund; or

236  Subparagraph 320246(1)(b)(i)

Omit “current pension liabilities (within the meaning of Part IX of the Income Tax Assessment Act 1936) of”, substitute “liabilities (contingent or not) in respect of *superannuation income stream benefits that are currently payable by”.

240  Subsection 320246(2)

Repeal the subsection.

242  Paragraph 320247(1)(a)

Repeal the paragraph, substitute:

 (a) the part provides solely for the discharge of the liabilities (contingent or not) in respect of *superannuation income stream benefits that are currently payable by a *complying superannuation fund; and

243  Paragraph 320247(2)(a)

Repeal the paragraph, substitute:

 (a) the part provides solely for the discharge of liabilities that are attributable to the liabilities (contingent or not) in respect of *superannuation income stream benefits that are currently payable by *complying superannuation funds; and

244  Subsection 39215(1) (method statement, step 1, paragraph (a))

Omit “subsection 27B(1A) or (3) (Assessable income to include certain superannuation and kindred payments) of the Income Tax Assessment Act 1936”, substitute “section 8265, 8270 or 302145 of the Income Tax Assessment Act 1997 (certain superannuation benefits and employment termination payments)”.

245  Paragraph 39245(2)(a)

Omit “under subsection 27B(1A) or (3) (Assessable income to include certain superannuation and kindred payments) of the Income Tax Assessment Act 1936”, substitute “section 8265, 8270 or 302145 of the Income Tax Assessment Act 1997 (certain employment termination payments and superannuation benefits)”.

246  Paragraphs 40530(3)(a) and (b)

Repeal the paragraphs, substitute:

 (a) a *superannuation lump sum or an *employment termination payment; or

 (b) an *unused annual leave payment or an *unused long service leave payment; or

247  Subsection 713555(3) (definition of reduced purchase price of the annuity)

Omit “Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936”, substitute “subsection (3A)”.

248  After subsection 713555(3)

Insert:

 (3A) For the purposes of subsection (3), work out the reduced purchase price of the *annuity as follows:

 (a) first, work out the purchase price (within the meaning of section 27H of the Income Tax Assessment Act 1936) of the annuity;

 (b) next, reduce that purchase price by the total of the amounts excluded from assessable income under paragraph 27H(1)(a) of that Act as deductible amounts in relation to the annuity.

249  Subsection 90012(3) (table item 5)

Repeal the item, substitute:

5

Subdivision 12C

*Superannuation benefits, *employment termination payments, unused leave payments and annuities

250  Subsection 9951(1) (definition of deferred annuity)

Repeal the definition.

251  Subsection 9951(1) (definition of eligible termination payment)

Repeal the definition.

252  Subsection 9951(1) (paragraph (a) of the definition of excluded virtual PST life insurance policy)

Repeal the paragraph, substitute:

 (a) provides only for *superannuation death benefits, *disability superannuation benefits or temporary disability benefits of a kind referred to in paragraph 295460(c), that are not *participating benefits; or

253  Subsection 9951(1)

Insert:

financing cost has the meaning given by section 2680.

254  Section 9951(1) (definition of indexation factor)

Repeal the definition, substitute:

indexation factor:

 (a) for an amount mentioned in a provision listed at items 8 to 12 in section 960265—indexation factor has the meaning given by section 960285; or

 (b) for an amount mentioned in a provision listed at another item in section 960265—indexation factor has the meaning given by section 960275.

255  Subsection 9951(1) (definition of indexation number)

Repeal the definition, substitute:

index number:

 (a) for an amount mentioned in a provision listed at items 8 to 12 in section 960265—index number has the meaning given by section 960285; or

 (b) for an amount mentioned in a provision listed at another item in section 960265—index number has the meaning given by section 960280.

256  Subsection 9951(1) (definition of risk component)

Repeal the definition, substitute:

risk component:

 (a) the risk component of a premium for a *life insurance policy has the meaning given by subsection 2685(2); and

 (b) the risk component of a claim paid under a life insurance policy has the meaning given by section 32080.

257  Subsection 9951(1) (definition of specified rollover amount)

Repeal the definition, substitute:

specified rollover amount of a *life insurance company means so much of an amount paid to the company as constitutes the *element untaxed in the fund of a *superannuation benefit that is a *rollover superannuation benefit because of subparagraph 30610(d)(ii).

258  Subsection 9951(1) (definition of taxable contributions)

Repeal the definition.

259  Subsection 9951(1) (subparagraph (b)(i) of the definition of virtual PST life insurance policy)

Repeal the subparagraph, substitute:

 (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

260  Subsection 9951(1) (definition of withholding tax)

Repeal the definition, substitute:

withholding tax means income tax payable under:

 (a) section 301175 (departing Australia superannuation payments); or

 (b) section 30615 (excess untaxed rollover amounts); or

 (c) section 128B of the Income Tax Assessment Act 1936.

Income Tax (Transitional Provisions) Act 1997

261  Before subsection 29225(1)

Insert:

 (1A) To avoid doubt, the tax free component of a directed termination payment (within the meaning of section 8210F) made in a financial year on behalf of you is not included in your concessional contributions (see section 29225 of the Income Tax Assessment Act 1997) for the financial year.

262  Subsection 29225(1)

Omit “A directed termination payment”, substitute “The taxable component of a directed termination payment”.

263  Subsection 29225(1)

Omit “it”, substitute “the component”.

264  Subsection 29225(2)

After “reduced by”, insert “the taxable component of”.

265  At the end of Division 292

Add:

29290  Nonconcessional contributions for a financial year

  The tax free component of a directed termination payment (within the meaning of section 8210F) made in a financial year on behalf of you is not included in your nonconcessional contributions (see section 29290 of the Income Tax Assessment Act 1997) for the financial year.

266  Before Subdivision 295I

Insert:

Subdivision 295BModifications of the Income Tax Assessment Act 1997 for 30 June 1988 assets

Table of sections

29575 Application of Subdivision

29580 Meaning of 30 June 1988 asset

29585 Cost base of 30 June 1988 asset

29590 Market value of stock exchange listed assets

29595 Adjustment of cost base as at 30 June 1988—return of capital

295100 Exercise of rights

29575  Application of Subdivision

  This Subdivision applies to an entity that is the trustee of a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust.

29580  Meaning of 30 June 1988 asset

  For the purposes of this Subdivision, an asset is a 30 June 1988 asset of a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust if the entity owned it at the end of 30 June 1988.

Note: Section 29590 of the Income Tax Assessment Act 1997 treats these assets as having been acquired on 30 June 1988.

29585  Cost base of 30 June 1988 asset

 (1) The first element of the cost base of each 30 June 1988 asset of the entity’s is the greater of the asset’s market value (at the end of 30 June 1988) and its cost base (on that day).

 (2) The first element of the reduced cost base of each 30 June 1988 asset of the entity’s is the lesser of the asset’s market value (at the end of 30 June 1988) and its cost base (on that day).

29590  Market value of stock exchange listed assets

 (1) If:

 (a) a 30 June 1988 asset of the entity’s was listed on an Australian stock exchange on 30 June 1988; and

 (b) on that day, identical assets were:

 (i) computer traded on a national market; or

 (ii) traded on a State capital city market;

the market value of the asset as at the end of 30 June 1988 is the average of the highest and lowest trade prices for identical assets recorded on 30 June 1988 in whichever of the following markets is applicable:

 (c) if, on that date, identical assets were computer traded on a national market—that national market;

 (d) if, on that date, there was a State capital city market (other than the Sydney market) that recorded a higher volume of trading than the Sydney market in identical assets—that State capital city market;

 (e) in any other case—the Sydney market.

 (2) For the purposes of this section, an asset is taken to have been listed on an Australian stock exchange on 30 June 1988 if, and only if, on that day the asset had the status of having been granted official quotation by a securities exchange within the meaning of the former Securities Industry Act 1980 or the law of a State or Territory corresponding to that former Act.

29595  Adjustment of cost base as at 30 June 1988—return of capital

 (1) If:

 (a) 30 June 1988 assets of the entity’s consist of shares in a company; and

 (b) at any time during the period commencing at the time when the shares were acquired and ending at the end of 30 June 1988, the company paid an amount that was not a dividend to the entity in respect of the shares;

the cost base to the entity of the shares as at 30 June 1988 is reduced by that amount.

 (2) If:

 (a) a 30 June 1988 asset of the entity’s consists of an interest or unit in a trust; and

 (b) at any time during the period commencing at the time when the interest or unit was acquired and ending at the end of 30 June 1988, the trustee of the trust paid an amount to the entity in respect of the interest or unit, being:

 (i) in a case where the entity was exempt from tax for the year of income in which the payment was made—an amount that, if the entity had not been exempt from tax, would not have been the entity’s assessable income; or

 (ii) in any other case—an amount that would not have been the entity’s assessable income;

the cost base to the entity of the interest or unit as at 30 June 1988 is reduced by so much of the amount as is not attributable to a deduction allowed under former Division 10C or 10D of the Income Tax Assessment Act 1936.

295100  Exercise of rights

 (1) Despite section 13040 of the Income Tax Assessment Act 1997, the modifications in subsections (2) and (3) of this section apply if an entity exercises rights or options as mentioned in that section to acquire:

 (a) shares in a company, or options to acquire shares in a company; or

 (b) units in a unit trust, or options to acquire units in a unit trust;

and those rights or options are 30 June 1988 assets of the entity.

 (2) The first element of the cost base of the shares, units or options is the sum of:

 (a) the amount paid to exercise the rights or options; and

 (b) the greater of the market value of the rights or options (at the end of 30 June 1988) and the cost base of the rights or options (on that day).

 (3) The first element of the reduced cost base of the shares, units or options is the sum of:

 (a) the amount paid to exercise the rights or options; and

 (b) the lesser of the market value of the rights or options (at the end of 30 June 1988) and the cost base of the rights or options (on that day).

 (4) The payment referred to in subsection (2) or (3) can include giving property. To the extent that the payment does, use the market value of the property in working out the amount of the payment.

 (5) For indexation purposes, the amount referred to in paragraph (2)(b) is taken to have been incurred on 30 June 1988.

Subdivision 295CNotices relating to contributions

Table of sections

295190 Deductions for personal contributions

295190  Deductions for personal contributions

 (1) A notice given under subsection 82AAT(1A) or (1CB) of the Income Tax Assessment Act 1936 in relation to the 200607 income year or an earlier year has effect, after 1 July 2007, as if it were a notice under section 290170 of the Income Tax Assessment Act 1997.

 (2) A notice given under subsection 82AAT(1C) or (1CD) of the Income Tax Assessment Act 1936 in relation to the 200607 income year or an earlier year has effect, after 1 July 2007, as if it were a notice under section 290180 of the Income Tax Assessment Act 1997.

Subdivision 295FExempt income

Table of sections

295390 Fixed interest complying ADFs—exemption of income attributable to certain 25 May 1988 deposits

295390  Fixed interest complying ADFs—exemption of income attributable to certain 25 May 1988 deposits

 (1) A proportion of the ordinary income and statutory income of a continuously complying fixed interest ADF of an income year that would otherwise be assessable income is exempt from income tax under this section. The proportion is worked out under subsection (3).

 (2) Subsection (1) does not apply to:

 (a) nonarm’s length income; or

 (b) amounts included in assessable income under Subdivision 295C of the Income Tax Assessment Act 1997.

 (3) The proportion is:

where:

Aggregate current balance is the total amount deposited with the fund (together with accumulated earnings), as at the reckoning time in relation to the income year.

Aggregate of current 25 May balances is the aggregate of the current 25 May balances of eligible depositors, as at the reckoning time in relation to the income year.

 (4) A choice for the purposes of the definition of reckoning time in subsection (5) must be made on or before the date of lodgment of the income tax return of the ADF for the income year to which the choice relates, or before a later day allowed by the Commissioner.

 (5) In this section:

continuously complying fixed interest ADF, in relation to an income year (the current year), means a fund that is a fixed interest complying ADF in relation to each of the following years:

 (a) the current year;

 (b) the income year in which 1 July 1988 occurred;

 (c) each income year later than the year mentioned in paragraph (b) and earlier than the current year.

current 25 May balance, in relation to an eligible depositor as at the reckoning time, is the balance as at that time determined by varying the original 25 May balance, in accordance with the following rules, during the period from 26 May 1988 to the reckoning time:

 (a) the balance from time to time is not to exceed the original 25 May balance and is not to be less than nil;

 (b) subject to paragraph (a), an amount deposited with the ADF by the depositor before 1 September 1989 is to be added to the balance;

 (c) subject to paragraph (a), an amount repaid to the depositor from the ADF is to be deducted from the balance.

eligible depositor, in relation to an ADF, means:

 (a) a depositor whose 55th birthday occurred on or before 25 May 1988; or

 (b) a depositor whose 50th birthday occurred on or before 25 May 1988 and who, on or before that day, made a deposit with the ADF that consisted wholly or partly of the rollover (as defined in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 as in force on that day) of an eligible termination payment as so defined, being an eligible termination payment that included a concessional component (as so defined).

fixed interest complying ADF, in relation to a year of income, means a complying ADF where both of the following conditions are satisfied:

 (a) not less than 90% of the amount that, apart from this section, would be the assessable income of the ADF of the income year (other than nonarm’s length income or amounts included in assessable income under Subdivision 295C of the Income Tax Assessment Act 1997) consists of any one or more of the following:

 (i) interest or a payment in the nature of interest;

 (ii) any profit arising on the disposal, redemption, cancellation or maturity of a CGT asset referred to in paragraph 29585(3)(b) of the Income Tax Assessment Act 1997;

 (iii) an amount included in assessable income under Division 16E of Part III of the Income Tax Assessment Act 1936;

 (b) at no time during the year of income did the assets of the fund consist of or include any of the following:

 (i) units in a PST;

 (ii) virtual PST life insurance policies (as defined in the Income Tax Assessment Act 1997) issued by a life insurance company.

original 25 May balance, in relation to an eligible depositor, means the amount of the deposits (together with accumulated earnings) standing to the credit of the depositor as at the end of 25 May 1988.

reckoning time, in relation to an ADF in relation to an income year, means the beginning of the income year, or such other time during the income year as the ADF chooses in accordance with subsection (4).

 (6) This section does not apply to an ADF in relation to an income year unless the whole of the benefit that would accrue to the ADF from the application of this section in relation to the income year has been, or can reasonably expected to be, passed on to eligible depositors.

Subdivision 295GDeductions

Table of sections

295465 Deductions for insurance premiums

295465  Deductions for insurance premiums

  An election made by the trustee of a complying superannuation fund under subsection 279(4) of the Income Tax Assessment Act 1936 that had effect for the income year of the fund in which 30 June 2007 occurs continues to have effect as if it had been made under section 295465 of the Income Tax Assessment Act 1997.

267  Before section 30185

Insert:

3015  Extended application to certain foreign superannuation funds

 (1) A foreign superannuation fund is covered by this section if:

 (a) the fund has been a complying superannuation fund; and

 (b) the fund last stopped being a complying superannuation fund after 1 July 1988 and before 1 July 1995.

 (2) Division 301 of the Income Tax Assessment Act 1997 applies to payments to you from a foreign superannuation fund covered by this section because you are a member of the fund in the same way as it would apply if the payments were superannuation member benefits paid to you from a complying superannuation fund.

268  Before section 302195

Insert:

3025  Extended application to certain foreign superannuation funds

 (1) A foreign superannuation fund is covered by this section if:

 (a) the fund has been a complying superannuation fund; and

 (b) the fund last stopped being a complying superannuation fund after 1 July 1988 and before 1 July 1995.

 (2) Division 302 of the Income Tax Assessment Act 1997 applies to payments to you from a foreign superannuation fund covered by this section after another person’s death, because the other person was a member of that fund, in the same way as it would apply if the payments were superannuation death benefits paid to you from a complying superannuation fund.

269  After Division 302

Insert:

Division 304Superannuation benefits in breach of legislative requirements etc.

30415  Excess payments from release authorities

 (1) This section applies to a superannuation benefit that you receive, paid in relation to a release authority given in relation to you in accordance with section 29280B.

 (2) The superannuation benefit is not assessable income and is not exempt income to the extent that it does not exceed the amount mentioned in subsection (3).

 (3) The amount is the amount of excess nonconcessional contributions stated in the release authority in accordance with paragraph 29280A(3)(a), reduced (but not below zero) by the amount of any superannuation benefit that was not assessable income and not exempt income under a previous operation of subsection (2) in relation to the release authority.

 (4) The superannuation benefit is assessable income to the extent (if any) that it exceeds the amount mentioned in subsection (3).

 (5) This section applies despite Divisions 301, 302 and 303 of the Income Tax Assessment Act 1997.

Division 306Rollovers etc.

30610  Rollover superannuation benefit—directed termination payment

  For the purposes of the definition of specified rollover amount in the Income Tax Assessment Act 1997, treat the taxable component of a directed termination payment (within the meaning of section 8210F) as the element untaxed in the fund of a superannuation benefit that is a rollover superannuation benefit.

270  After paragraph 307125(3)(b)

Insert:

 (ba) the holder of the superannuation interest is aged 60 or above on 1 July 2007, if none of the superannuation income stream benefits paid from the superannuation interest after 30 June 2007 consist of, or include, an element untaxed in the fund;

271  Paragraph 307125(6)(b)

Omit “, reduced by the tax free components (worked out under subsection (2)) of any benefits paid from the superannuation income stream after 30 June 2007”.

272  At the end of paragraph 307125(6)(c)

Add “However, treat this amount as nil for the purposes of this paragraph if at least one superannuation income stream benefit was paid from the superannuation income stream before 1 July 1994.”.

Parliamentary Superannuation Act 2004

273  Paragraph 4(1)(a)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

Pooled Development Funds Act 1992

274  Subsection 4A(2)

Omit “Part IX of that Act”, substitute “the Income Tax Assessment Act 1997”.

275  Paragraph 4A(3)(b)

Repeal the paragraph, substitute:

 (b) it is a foreign superannuation fund (within the meaning of the Income Tax Assessment Act 1997); and

Remuneration and Allowances Act 1990

276  Paragraph 1B(1)(a) of Schedule 3

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

Retirement Savings Accounts Act 1997

277  Subparagraph 3(1)(a)(iii)

Repeal the subparagraph, substitute:

 (iii) Parts 6 and 9, and Part 11 (except Divisions 2 and 4A); and

278  At the end of subsection 3(1)

Add:

 ; and (e) the Commissioner of Taxation has the general administration of Divisions 2 and 4A of Part 11.

279  After section 43

Insert:

43A  Rules about cashing benefits after death of RSA holder

 (1) The terms and conditions of an RSA must not permit the RSA holder’s benefits to be cashed after the holder’s death otherwise than in accordance with standards prescribed for the purposes of section 38.

 (2) If the terms and conditions of an RSA are inconsistent with subsection (1):

 (a) subsection (1) prevails; and

 (b) the terms and conditions are invalid, to the extent of the inconsistency.

280  Paragraph 133(1)(a)

Repeal the paragraph, substitute:

 (a) an employee:

 (i) quotes or first quotes his or her tax file number to his or her employer in connection with the operation or the possible future operation of this Act and the other Superannuation Acts; or

 (ii) quotes or first quotes his or her tax file number on or after 1 July 2007 to his or her employer in connection with the operation of Division 3 of Part VA of the Income Tax Assessment Act 1936; and

281  At the end of subsection 133(1)

Add:

Note: Division 3 of Part VA of the Income Tax Assessment Act 1936 deals with quotation of tax file numbers by recipients of eligible PAYG payments.

282  Paragraph 139(a)

After “APRA”, insert “or in the approved form (as defined by section 38850 in Schedule 1 to the Taxation Administration Act 1953)”.

283  After Division 4 of Part 11

Insert:

Division 4AIncorrect quotation of tax file number

143A  Effect of mistaken quotation of tax file number

 (1) The Commissioner of Taxation may give an RSA provider notice of the tax file number of the holder of an RSA if:

 (a) the provider has made a record of a number (the recorded TFN) the provider believes to be the tax file number of the holder; and

 (b) the Commissioner is satisfied that the recorded TFN:

 (i) has been cancelled or withdrawn since it was quoted; or

 (ii) is otherwise wrong; and

 (c) the Commissioner is satisfied that the holder has a tax file number.

 (2) The holder is taken to have quoted his or her tax file number to the provider in connection with the operation or the possible future operation of this Act and the other Superannuation Acts at a time if:

 (a) the Commissioner gives the provider a notice under subsection (1); and

 (b) had the recorded TFN been the tax file number of the holder, the holder would have quoted his or her tax file number to the trustee in that way at the time.

143B  Effect of invalid quotation of tax file number

 (1) The Commissioner may give an RSA provider a notice under subsection (2) if:

 (a) the provider has made a record of a number (the recorded TFN) the trustee believes to be the tax file number of the holder of an RSA; and

 (b) the Commissioner is satisfied that the recorded TFN:

 (i) has been cancelled or withdrawn since it was quoted; or

 (ii) is otherwise wrong; and

 (c) the Commissioner is not satisfied that the holder has a tax file number.

 (2) The notice must identify the holder and state that the Commissioner is not satisfied that the holder has a tax file number.

 (3) If the Commissioner gives a notice under subsection (2), the Commissioner must give a copy of the notice to the holder.

Seafarers Rehabilitation and Compensation Act 1992

284  Subsection 34(4) (definition of approved deposit fund)

Repeal the definition, substitute:

approved deposit fund has the same meaning as in the Income Tax Assessment Act 1997.

285  Subsection 34(4) (definition of rolledover)

Repeal the definition, substitute:

rolledover means paid as a rollover superannuation benefit (within the meaning of the Income Tax Assessment Act 1997).

286  Subsection 34(4) (at the end of the definition of superannuation fund)

Add “(as in force just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007)”.

Small Superannuation Accounts Act 1995

287  Section 4 (definition of complying superannuation fund)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

288  Section 4 (note to the definition of complying superannuation fund)

Repeal the note, substitute:

Note: The Income Tax Assessment Act 1997 defines complying superannuation fund by reference to section 45 of the Superannuation Industry (Supervision) Act 1993.

Social Security Act 1991

289  Subsection 9(1) (definition of approved deposit fund)

Repeal the definition, substitute:

approved deposit fund has the same meaning as in the Income Tax Assessment Act 1997.

290  Subsection 9(1) (definition of deferred annuity)

Repeal the definition, substitute:

deferred annuity means an annuity, within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993, that is not presently payable.

291  Subsection 9(1) (definition of residual capital value)

Repeal the definition, substitute:

residual capital value, in relation to an income stream, means the capital amount payable on the termination of the income stream.

Note: An accountbased income stream does not have a residual capital value (see subsection (10) of this section).

292  Subsection 9(1) (definition of superannuation fund)

Repeal the definition, substitute:

superannuation fund means:

 (a) a fund that is or has been a complying superannuation fund within the meaning of section 45 of the Superannuation Industry (Supervision) Act 1993 in relation to any tax year; or

 (b) an Australian superannuation fund (within the meaning of the Income Tax Assessment Act 1997) that is not a complying superannuation fund mentioned in paragraph (a) in relation to any tax year; or

 (c) a scheme for the payment of benefits upon retirement or death that is constituted by or under a law of the Commonwealth or of a State or Territory; or

 (d) an RSA within the meaning of the Retirement Savings Accounts Act 1997; or

 (e) any of the following funds (unless the fund is a foreign superannuation fund within the meaning of the Income Tax Assessment Act 1997):

 (i) a fund to which paragraph 23(jaa), or section 23FC, 121CC or 121DAB, of the Income Tax Assessment Act 1936 (as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989) has applied in relation to any tax year;

 (ii) a fund to which paragraph 23(ja), or section 23F or 23FB, of the Income Tax Assessment Act 1936 (as in force at any time before the commencement of paragraph (a) of the definition of superannuation fund in former subsection 27A(1) of the Income Tax Assessment Act 1936) has applied in relation to the tax year that started on 1 July 1985 or an earlier tax year;

 (iii) a fund to which section 79 of the Income Tax Assessment Act 1936 (as in force at any time before 25 June 1984) has applied in relation to the tax year that started on 1 July 1983 or an earlier tax year.

293  At the end of section 9

Add:

 (10) To avoid doubt, for the purposes of this Act, an accountbased income stream does not have a residual capital value.

294  Subsection 14A(1) (paragraph (d) of the definition of liquid assets)

Repeal the paragraph, substitute:

 (d) a rollover superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or

 (daa) a superannuation lump sum (within the meaning of that Act) that is a contributionssplitting superannuation benefit (within the meaning of that Act); or

 (dab) a directed termination payment (within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997); or

295  Subsection 14A(1) (note 2 at the end of the definition of liquid assets)

Repeal the note.

296  Section 19B (paragraph (f) of the definition of liquid assets)

Repeal the paragraph, substitute:

 (f) a rollover superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or

 (fa) a superannuation lump sum (within the meaning of that Act) that is a contributionssplitting superannuation benefit (within the meaning of that Act); or

 (fb) a directed termination payment (within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997); or

297  Point 1064F3

Repeal the point, substitute:

Directed termination payments excluded

1064F3 If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and

 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of Module E.

298  Point 1064F13

Omit “1064F3”, substitute “1064F4”.

299  Point 1064F14 (definition of redundancy payment)

Repeal the definition, substitute:

redundancy payment does not include a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

300  Point 1064F14 (definition of rollover)

Repeal the definition.

301  Point 1066AG3

Repeal the point, substitute:

Directed termination payments excluded

1066AG3  If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and

 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of Module F.

302  Point 1066AG13

Omit “1066AG3”, substitute “1066AG4”.

303  Point 1066AG14 (definition of redundancy payment)

Repeal the definition, substitute:

redundancy payment does not include a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

304  Point 1066AG14 (definition of rollover)

Repeal the definition.

305  Point 1067GH10

Repeal the point, substitute:

Directed termination payments excluded

1067GH10 If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and

 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

306  Points 1067GH18 and 1067GH19

Omit “1067GH10”, substitute “1067GH11”.

307  Point 1067GH19 (definition of redundancy payment)

Repeal the definition, substitute:

redundancy payment does not include a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

308  Point 1067GH19 (definition of rollover)

Repeal the definition.

309  Point 1067LD4

Repeal the point, substitute:

Directed termination payments excluded

1067LD4  If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and

 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

310  Points 1067LD14 and 1067LD15

Omit “1067LD4”, substitute “1067LD5”.

311  Point 1067LD15 (definition of redundancy payment)

Repeal the definition, substitute:

redundancy payment does not include a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

312  Point 1067LD15 (definition of rollover)

Repeal the definition.

313  Point 1068G7AF

Repeal the point, substitute:

Directed termination payments excluded

1068G7AF  If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and

 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of Module G of section 1068.

314  Points 1068G7AP and 1068G7AQ

Omit “1068G7AF”, substitute “1068G7AG”.

315  Point 1068G7AQ (definition of redundancy payment)

Repeal the definition, substitute:

redundancy payment does not include a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

316  Point 1068G7AQ (definition of rollover)

Repeal the definition.

317  Point 1068AE2

Repeal the point, substitute:

Directed termination payments excluded

1068AE2  If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and

 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

318  Points 1068AE11 and 1068AE12

Omit “1068AE2”, substitute “1068AE3”.

319  Point 1068AE12 (definition of redundancy payment)

Repeal the definition, substitute:

redundancy payment does not include a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

320  Point 1068AE12 (definition of rollover)

Repeal the definition.

321  Point 1068BD8

Repeal the point, substitute:

Directed termination payments excluded

1068BD8  If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and

 (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

322  Points 1068BD17 and 1068BD18

Omit “1068BD8”, substitute “1068BD9”.

323  Point 1068BD18 (definition of redundancy payment)

Repeal the definition, substitute:

redundancy payment does not include a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

324  Point 1068BD18 (definition of rollover)

Repeal the definition.

325  Paragraph 1075(1)(c)

Omit “subsection 82AAC(1) of the Income Tax Assessment Act 1936”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

326  Subparagraph 1185Y(3)(d)(iii)

Omit “sections 82AAC, 82AAD, 82AADA and 82AAF of the Income Tax Assessment Act 1936”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

327  Paragraph 1207P(3)(b)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

Superannuation Contributions Tax (Assessment and Collection) Act 1997

328  Subsection 16(6)

Omit “a lump sum, or a pension or annuity,”, substitute “a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997)”.

329  Subsection 16(6)

Omit “the lump sum, or the first instalment of pension or annuity,”, substitute “the superannuation benefit”.

330  Section 43 (definition of annuity)

Omit “a deferred annuity as defined in subsection 27A(1) of the Income Tax Assessment Act”, substitute “such an annuity that is not presently payable”.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

331  Paragraph 12(6)(a)

Omit “a lump sum, or a pension,”, substitute “a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997)”.

332  Paragraph 12(6)(d)

Omit “the lump sum or pension”, substitute “the superannuation benefit”.

333  Subsection 15(6)

Omit “a lump sum, or a pension,”, substitute “a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997)”.

334  Paragraph 15(8A)(b)

Omit “neither a lump sum nor a pension is payable”, substitute “a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997) is not payable”.

335  Paragraph 17(4)(a)

Repeal the paragraph, substitute:

 (a) the Commissioner must debit the member’s surcharge debt account for the amount of the increase if none of the following has become payable by the relevant superannuation provider for the benefit of the member:

 (i) a lump sum;

 (ii) a pension;

 (iii) a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or

336  Paragraph 17(4)(b)

Omit “otherwise”, substitute “if paragraph (a) does not apply”.

337  Paragraph 17(5)(a)

Repeal the paragraph, substitute:

 (a) the Commissioner must credit the account with the amount by which the surcharge is reduced if none of the following has become payable by the relevant superannuation provider for the benefit of the member and the member’s surcharge debt account is in debit:

 (i) a lump sum;

 (ii) a pension;

 (iii) a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or

338  Paragraph 17(5)(b)

Omit “otherwise”, substitute “if paragraph (a) does not apply”.

339  Section 38 (definition of constitutionally protected superannuation fund)

Omit “Part IX of the Income Tax Assessment Act”, substitute “the Income Tax Assessment Act 1997”.

Superannuation (Government Cocontribution for Low Income Earners) Act 2003

340  Subsection 5(2)

Omit “(sections 26 to 45) tells you how the Commissioner of Taxation gathers the information needed for making decisions about Government cocontributions”, substitute “(sections 30 to 45) tells you how the Commissioner of Taxation gathers some of the information needed for making decisions about Government cocontributions”.

341  Paragraph 7(1)(b)

Repeal the paragraph, substitute:

 (b) the contribution was or is made for the purpose of providing superannuation benefits for the person (regardless whether the benefits are payable to the person’s dependants if the person dies before or after becoming entitled to receive the benefits); and

342  Subparagraph 7(1)(c)(iii)

Omit “1997).”, substitute “1997);”.

343  At the end of paragraph 7(1)(c)

Add:

 (iv) an amount transferred from a scheme mentioned in paragraph 2905(c) of the Income Tax Assessment Act 1997.

344  Section 56 (definition of complying superannuation fund)

Repeal the definition, substitute:

complying superannuation fund has the same meaning as in the Income Tax Assessment Act 1997.

345  Section 56 (definition of constitutionally protected fund)

Repeal the definition, substitute:

constitutionally protected fund has the same meaning as in the Income Tax Assessment Act 1997.

Superannuation Guarantee (Administration) Act 1992

346  Subsection 6(1) (subsubparagraphs (a)(i)(B) and (C) of the definition of ordinary time earnings)

Repeal the subsubparagraphs, substitute:

 (B) an unused annual leave payment, or unused long service leave payment, within the meaning of the Income Tax Assessment Act 1997; and

347  Section 7

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

348  Section 7A

Omit “complying ADF in relation to the year of income in which that time occurred for the purposes of Part IX of the Income Tax Assessment Act 1936”, substitute “complying approved deposit fund in relation to the year of income in which that time occurred for the purposes of the Income Tax Assessment Act 1997”.

349  Section 15A

Repeal the section.

350  Subsections 19(4), (5), (6) and (7)

Repeal the subsections.

Superannuation Industry (Supervision) Act 1993

351  Subsection 10(1) (subparagraph (a)(i) of the definition of approved purposes)

Repeal the subparagraph, substitute:

 (i) amounts of rollover superannuation benefits (within the meaning of the Income Tax Assessment Act 1997); and

 (ia) amounts of directed termination payments (within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997); and

352  Subsection 10(1) (definition of resident regulated superannuation fund)

Omit “a resident superannuation fund within the meaning of subsection 6E(1) of the Income Tax Assessment Act 1936”, substitute “an Australian superannuation fund within the meaning of the Income Tax Assessment Act 1997”.

353  Subsection 10(1) (definition of unit trust)

Repeal the definition, substitute:

unit trust means:

 (a) a unit trust within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936 (whether established by a law of the Commonwealth or of a State or Territory, by a government agency or otherwise); or

 (b) the trustee of such a trust;

as appropriate.

354  Subsubparagraph 42(1A)(a)(ii)(A)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

355  Subparagraph 42(1A)(b)(iii)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

356  Subsubparagraph 42(1A)(b)(iv)(A)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

357  Subparagraph 42A(5)(b)(i)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

358  Subsections 45(1) and (6)

Omit “Part IX of”.

359  Subsection 47(1)

Omit “Part IX of”.

360  Subsection 48(1)

Omit “Part IX of”.

361  After section 55

Insert:

55A  Rules about cashing benefits after death of members

 (1) The governing rules of a regulated superannuation fund must not permit a fund member’s benefits to be cashed after the member’s death otherwise than in accordance with standards prescribed for the purposes of section 31.

 (2) If the governing rules of a fund are inconsistent with subsection (1):

 (a) subsection (1) prevails; and

 (b) the governing rules are invalid, to the extent of the inconsistency.

362  Subsection 117(1)

Repeal the subsection.

363  Subsection 117(10) (definition of complying superannuation fund)

Repeal the definition.

364  Subparagraph 355(2)(a)(i)

Omit “Part IX of”.

Superannuation (Productivity Benefit) Act 1988

365  Section 4D

Omit “complying fund within the meaning of Part IX of the Income Tax Assessment Act 1936”, substitute “complying superannuation fund within the meaning of the Income Tax Assessment Act 1997”.

Taxation Administration Act 1953

366  Subsection 8AAB(5) (after table item 2A)

Insert:

2B

section 292390

Income Tax Assessment Act 1997

367  Subsection 105(1) in Schedule 1 (table items 7, 8 and 9)

Repeal the table items, substitute:

7

A *superannuation income stream or an annuity

1280

8

A *superannuation lump sum or an *employment termination payment

1285

9

An unused leave payment

1290

368  Subsection 125(2) in Schedule 1 (cell at table item 2, column headed “Which is about:”)

Repeal the cell, substitute:

a *superannuation benefit, an annuity, an *employment termination payment or an unused leave payment

369  Subdivision 12C in Schedule 1

Repeal the Subdivision, substitute:

Subdivision 12CSuperannuation payments, employment termination payments and unused leave payments

1280  Superannuation income streams and annuities

  An entity must withhold an amount from any of the following payments it makes to an individual:

 (a) a *superannuation income stream;

 (b) an *annuity.

For exceptions, see section 121.

1285  Superannuation lump sums and employment termination payments

  An entity must withhold an amount from any of the following payments it makes to an individual:

 (a) a *superannuation lump sum;

 (b) an *employment termination payment.

For exceptions, see section 121.

1290  Unused leave payments

  An entity must withhold an amount from any of the following payments it makes to an individual:

 (a) an *unused annual leave payment;

 (b) an *unused long service leave payment, to the extent that the payment is included in the individual’s assessable income.

For exceptions, see section 121.

370  Section 12305 in Schedule 1

Omit “departing Australia superannuation payment (within the meaning of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936)”, substitute “*departing Australia superannuation payment”.

371  Paragraphs 12310(a) and (b) in Schedule 1

Repeal the paragraphs, substitute:

 (a) to withhold an amount from a *departing Australia superannuation payment if no *withholding tax is payable in respect of the payment; or

 (b) to withhold from a departing Australia superannuation payment more than the withholding tax payable in respect of the payment (reduced by each amount already withheld from it under this Subdivision).

Note: Section 301175 of the Income Tax Assessment Act 1997 deals with the withholding tax liability.

372  Subparagraph 12315(1)(c)(iv) in Schedule 1

Repeal the subparagraph, substitute:

 (iv) a *departing Australia superannuation payment; or

373  Section 16165 in Schedule 1

Repeal the section, substitute:

16165  Payment summaries for superannuation lump sums and employment termination payments

 (1) Within 14 days after an entity (the payee) makes a payment covered under subsection (2) to a person (the recipient), the entity must:

 (a) give a *payment summary to the recipient that covers the payment (and no other payments); and

 (b) give a copy of the summary to the Commissioner.

 (2) The following payments are covered under this subsection if they are *withholding payments:

 (a) a *superannuation lump sum;

 (b) an *employment termination payment, other than a directed termination payment within the meaning of section 8210F of the Income Tax (Transitional Provisions) Act 1997.

374  Section 16166 in Schedule 1

Omit “departing Australia superannuation payment (within the meaning of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936)”, substitute “*departing Australia superannuation payment”.

375  Paragraph 16170(1)(f) in Schedule 1

Repeal the paragraph.

376  Subsection 1842(1) in Schedule 1

Omit “section 27GA of the Income Tax Assessment Act 1936”, substitute “section 301175 of the Income Tax Assessment Act 1997”.

377  Paragraph 1865(3)(d) in Schedule 1

Repeal the paragraph, substitute:

 (d) the payment, *alienated personal services payment or noncash benefit was in respect of any of the following provisions:

 (i) Subdivision 12B (payments for work or services);

 (ii) Subdivision 12C (*superannuation benefits, annuities, *employment termination payments and unused leave payments);

 (iii) Subdivision 12D (benefits and compensation payments);

 (iv) section 12140 or 12145 (recipient does not quote tax file number or ABN); and

378  Paragraphs 45120(2)(a), (b) and (c) in Schedule 1

Repeal the paragraphs, substitute:

 (a) a *complying approved deposit fund or a *noncomplying approved deposit fund; or

 (b) a *complying superannuation fund or a *noncomplying superannuation fund; or

 (c) a *pooled superannuation trust;

379  Paragraphs 45290(2)(a), (b) and (c) in Schedule 1

Repeal the paragraphs, substitute:

 (a) a *complying approved deposit fund or a *noncomplying approved deposit fund for the income year that is or includes the current period; or

 (b) a *complying superannuation fund or a *noncomplying superannuation fund for that year; or

 (c) a *pooled superannuation trust for that year.

380  Paragraphs 45330(2)(a), (b) and (c) in Schedule 1

Repeal the paragraphs, substitute:

 (a) a *complying approved deposit fund or a *noncomplying approved deposit fund for the *base year; or

 (b) a *complying superannuation fund or a *noncomplying superannuation fund for that year; or

 (c) a *pooled superannuation trust for that year.

381  Section 45340 in Schedule 1 (method statement, step 1, paragraph (g))

Omit “section 159T of the Income Tax Assessment Act 1936”, substitute “section 290230 of the Income Tax Assessment Act 1997”.

382  Paragraphs 45370(2)(a), (b) and (c) in Schedule 1

Repeal the paragraphs, substitute:

 (a) a *complying approved deposit fund or a *noncomplying approved deposit fund for the variation year; or

 (b) a *complying superannuation fund or a *noncomplying superannuation fund for the variation year; or

 (c) a *pooled superannuation trust for the variation year.

383  Section 45375 in Schedule 1 (method statement, step 1, paragraph (f))

Omit “section 159T of the Income Tax Assessment Act 1936”, substitute “section 290230 of the Income Tax Assessment Act 1997”.

384  Subsection 25010(2) in Schedule 1 (after table item 38)

Insert:

38A

excess concessional contributions tax

section 292385

Income Tax Assessment Act 1997

38B

excess nonconcessional contributions tax

section 292385

Income Tax Assessment Act 1997

385  Subsection 25010(2) in Schedule 1 (after table item 65)

Insert:

67

Superannuation (Self Managed Funds) Levy

section 15DB

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

386  Section 2801 in Schedule 1

Omit “or petroleum resource rent tax”, substitute “, petroleum resource rent tax or excess contributions tax”.

387  Section 28050 in Schedule 1

Omit “or *petroleum resource rent tax”, substitute “, *petroleum resource rent tax or *excess contributions tax”.

388  After section 280102 in Schedule 1

Insert:

280102A  Liability to shortfall interest charge—excess contributions tax

 (1) You are liable to pay *shortfall interest charge on an additional amount of *excess contributions tax that you are liable to pay because the Commissioner amends your *excess contributions tax assessment for a financial year.

 (2) The liability is for each day in the period:

 (a) beginning at the start of the day on which *excess contributions tax under your first *excess contributions tax assessment for that year was due to be paid; and

 (b) ending at the end of the day before the day on which the Commissioner gave you notice of the amended assessment.

 (3) However, if an amended assessment reinstates all or part of a liability in relation to a particular that had been reduced by an earlier amended assessment, the period for the reinstated liability begins at the start of the day on which *excess contributions tax under the earlier amended assessment was due to be paid.

Note: See section 292385 of the Income Tax Assessment Act 1997 for when the amount of excess contributions tax and shortfall interest charge becomes due and payable. Section 292390 of that Act provides for general interest charge on any part of the additional amount (plus any shortfall interest charge) that remains unpaid after the additional amount is due and payable.

389  Paragraph 280105(1)(a) in Schedule 1

Omit “or *petroleum resource rent tax”, substitute “, *petroleum resource rent tax or *excess contributions tax”.

390  Subsection 280110(1) in Schedule 1

Omit “or 280102”, substitute “, 280102 or 280102A”.

391  Section 280170 in Schedule 1

Omit “or *petroleum resource rent tax”, substitute “*petroleum resource rent tax or *excess contributions tax”.

392  At the end of section 3901 in Schedule 1

Add:

Note: For requirements for payment summaries in relation to superannuation lump sums and employment termination payments, see section 16165.

393  At the end of section 39010 in Schedule 1

Add:

 (10) The *approved form may require the statement to contain the *tax file number of:

 (a) the first provider; and

 (b) the first plan; and

 (c) the individual in respect of whom the benefit is paid if:

 (i) the individual has quoted the individual’s tax file number to the first provider; or

 (ii) a person who made at least some of the contributions mentioned in paragraph (4)(a) has quoted the individual’s tax file number to the first provider (and had authority to do so).

Taxation (Interest on Overpayments and Early Payments) Act 1983

394  Paragraph 8ZD(1)(b)

After “employer was required by”, insert “section 133 of the Retirement Savings Accounts Act 1997 or”.

Veterans’ Entitlements Act 1986

395  Subsection 5J(1) (definition of approved deposit fund)

Repeal the definition, substitute:

approved deposit fund has the same meaning as in the Income Tax Assessment Act 1997.

396  Subsection 5J(1) (definition of deferred annuity)

Repeal the definition, substitute:

deferred annuity means an annuity, within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993, that is not presently payable.

397  Subsection 5J(1) (definition of residual capital value)

Repeal the definition, substitute:

residual capital value, in relation to an income stream, means the capital amount payable on the termination of the income stream.

Note: An accountbased income stream does not have a residual capital value (see subsection (9) of this section).

398  Subsection 5J(1) (definition of superannuation fund)

Repeal the definition (not including the note), substitute:

superannuation fund means:

 (a) a fund that is or has been a complying superannuation fund within the meaning of section 45 of the Superannuation Industry (Supervision) Act 1993 in relation to any tax year; or

 (b) an Australian superannuation fund (within the meaning of the Income Tax Assessment Act 1997) that is not a complying superannuation fund mentioned in paragraph (a) in relation to any tax year; or

 (c) a scheme for the payment of benefits upon retirement or death that is constituted by or under a law of the Commonwealth or of a State or Territory; or

 (d) an RSA within the meaning of the Retirement Savings Accounts Act 1997; or

 (e) any of the following funds (unless the fund is a foreign superannuation fund):

 (i) a fund to which paragraph 23(jaa), or section 23FC, 121CC or 121DAB, of the Income Tax Assessment Act 1936 (as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989) has applied in relation to any tax year;

 (ii) a fund to which paragraph 23(ja), or section 23F or 23FB, of the Income Tax Assessment Act 1936 (as in force at any time before the commencement of paragraph (a) of the definition of superannuation fund in former subsection 27A(1) of the Income Tax Assessment Act 1936) has applied in relation to the tax year that started on 1 July 1985 or an earlier tax year;

 (iii) a fund to which section 79 of the Income Tax Assessment Act 1936 (as in force at any time before 25 June 1984) has applied in relation to the tax year that started on 1 July 1983 or an earlier tax year.

399  At the end of section 5J

Add:

 (9) To avoid doubt, for the purposes of this Act, an accountbased income stream does not have a residual capital value.

400  Subsection 5L(1) (definition of foreign superannuation fund)

Repeal the definition, substitute:

foreign superannuation fund has the same meaning as in the Income Tax Assessment Act 1997.

401  Subsection 5L(1) (note to the definition of foreign superannuation pension)

Repeal the note.

402  Paragraph 46C(1)(c)

Omit “subsection 82AAC(1) of the Income Tax Assessment Act 1936”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

403  Subparagraph 49Y(3)(f)(iii)

Omit “sections 82AAC, 82AAD, 82AADA and 82AAF of the Income Tax Assessment Act 1936”, substitute “section 29060 of the Income Tax Assessment Act 1997”.

404  Paragraph 52ZZB(3)(b)

Omit “Part IX of the Income Tax Assessment Act 1936”, substitute “the Income Tax Assessment Act 1997”.

Part 3Repeal of entire Act

Income Tax (Superannuation Payments Withholding Tax) Act 2002

405  The whole of the Act

Repeal the Act.

Part 4Application

406  Application

(1) The amendments made by this Schedule apply to the 20072008 income year and later years.

(2) Despite subitem (1), those amendments apply to the 20072008 financial year and later years, to the extent that they relate to Division 292 of the Income Tax Assessment Act 1997.

(3) Despite subitem (1), those amendments apply on and after 1 July 2007, to the extent that they relate to any of the following:

 (a) Divisions 82 and 83 of the Income Tax Assessment Act 1997;

 (b) Divisions 301 to 307 of that Act.

(4) Despite subitem (1), the amendments in items 297 to 324 of this Schedule apply on and after 1 July 2007.

(5) Despite subitem (1), the amendments in items 326 and 403 of this Schedule apply in relation to the 20072008 financial year and later years.

Schedule 2Small business relief for CGT events

 

Income Tax Assessment Act 1997

1  Section 1115 (after table item headed “life insurance companies”)

Insert:

small business retirement exemption

 

payment by company or trust, arising from CGT event ..

152310(2)

2  After paragraph 82135(f)

Insert:

 (fa) a payment (or part of one) made by a company or trust as mentioned in subsection 152310(2);

3  Paragraph 152305(1)(b)

Repeal the paragraph, substitute:

 (b) if you are under 55 just before you make the choice—you contribute an amount equal to the asset’s *CGT exempt amount to a *complying superannuation fund or an *RSA; and

Note: For the nondeductibility of the contribution, see subsection 290150(4).

 (c) the contribution is made:

 (i) if the relevant CGT event is CGT event J2, J5 or J6—when you made the choice; or

 (ii) otherwise—at the later of when you made the choice and when you received the proceeds.

4  Subsection 152305(1) (note 2)

Repeal the note.

5  Subsection 152310(2)

Repeal the subsection, substitute:

Additional consequences in relation to company or trust

 (2) Any payment or part of one the company or trust makes to comply with section 152325:

 (a) is *exempt income of the *CGT concession stakeholder to whom it is made; and

 (b) cannot be deducted from the company’s or trust’s assessable income.

6  Subsections 152310(4) and (5)

Repeal the subsections.

7  After subsection 152325(3)

Insert:

 (3A) If the *CGT concession stakeholder to whom the payment is made is an employee of the company or trust, the payment must not be of a kind mentioned in section 82135 (disregarding paragraph (fa) of that section).

8  Subsections 152325(7) and (8)

Repeal the subsections, substitute:

 (7) If a *CGT concession stakeholder is under 55 just before a payment is made under this section in relation to him or her:

 (a) the company or trust must make the payment to the CGT concession stakeholder by contributing it for the stakeholder to a *complying superannuation fund or an *RSA in respect of the stakeholder; and

 (b) the company or trust must notify the trustee of the fund or the *RSA provider at the time the contribution is made that the contribution is made in accordance with this section.

Note: For the nondeductibility of the contribution, see subsection 290150(4).

 (8) For the purposes of Part 330, treat a payment mentioned in paragraph (7)(a), made in accordance with this section, as a contribution made by the *CGT concession stakeholder.

 (9) If:

 (a) a payment is made to a *CGT concession stakeholder in accordance with this section (disregarding section 109 of the Income Tax Assessment Act 1936); and

 (b) the stakeholder is an employee of the company or trust;

treat the payment, for the purposes of section 109 of that Act, as made in consequence of the termination of employment of the stakeholder.

9  At the end of section 290150

Add:

 (4) If the contribution is attributable in whole or part to a *capital gain from a *CGT event:

 (a) if you disregarded all or part of the capital gain from the CGT event under subsection 152305(1) and you were under 55 just before you made the choice mentioned in that subsection—you cannot deduct the contribution to the extent that it is attributable to the capital gain; or

 (b) if a company or trust disregarded all or part of the capital gain from the CGT event under subsection 152305(2) and you were under 55 just before the contribution was made—you cannot deduct the contribution to the extent that it is attributable to the capital gain.

10  Paragraph 292100(4)(c)

Omit “your stakeholder’s control percentage (within the meaning of subsection 152125(3))”, substitute “your stakeholder’s participation percentage (within the meaning of subsection 152125(2))”.

11  Subsection 292100(6)

Omit “*controlling individual”, substitute “*significant individual”.

12  Application

(1) The amendments made by items 1 to 9 of this Schedule apply to:

 (a) individuals who:

 (i) make the choice referred to in subsection 152305(1) of the Income Tax Assessment Act 1997; or

 (ii) receive capital proceeds from a CGT event; and

 (b) companies or trusts that make a payment referred to in section 152325 of the Income Tax Assessment Act 1997;

after 30 June 2007, regardless of when the relevant CGT event happened.

(2) The amendments made by items 10 and 11 of this Schedule apply to CGT events happening in the 200607 income year and later income years.

Schedule 3Other amendments

 

Bankruptcy Act 1966

1  Paragraph 116(2)(d)

Omit “subsection (5) of this section and”.

2  Subsections 116(5), (6), (7), (8), (8A) and (9)

Repeal the subsections.

3  Application

The amendments made by the previous 2 items of this Schedule apply on and after 1 July 2007.

Child Support (Registration and Collection) Act 1988

4  Subsection 4(1) (definition of work and income support related withholding payments)

Repeal the definition (not including the note), substitute:

work and income support related withholding payments means:

 (a) payments from which an amount must be withheld under a provision of Subdivision 12B (other than section 1255), 12C or 12D or Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld); or

 (b) payments from which an amount would be required to be withheld under a provision mentioned in paragraph (a) (other than section 1255) apart from subsection 121(1A) in Schedule 1 to that Act.

5  Subsection 4(1) (note to definition of work and income support related withholding payments)

Omit “pensions and annuities, eligible termination payments”, substitute “annuities, payments of superannuation benefits, employment termination payments”.

Income Tax Assessment Act 1936

6  Subsection 6(1) (paragraph (a) of the definition of work and income support related withholding payments and benefits)

Repeal the paragraph, substitute:

 (a) payments from which an amount:

 (i) must be withheld under a provision of Subdivision 12B (other than section 1255), 12C or 12D or Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld); or

 (ii) would be required to be withheld under a provision mentioned in subparagraph (i) (other than section 1255) apart from subsection 121(1A) in Schedule 1 to that Act; and

7  Subsection 6(1) (note to definition of work and income support related withholding payments and benefits)

Omit “pensions and annuities, eligible termination payments”, substitute “annuities, superannuation benefits, employment termination payments”.

Income Tax Assessment Act 1997

8  Subsection 8015(1)

After “can”, insert “be or”.

9  Subsection 8015(2)

Repeal the subsection, substitute:

 (2) The amount of the payment is or includes the *market value of the property.

10  After Division 280

Insert:

Division 285General concepts relating to superannuation

2855  Transfers of property

 (1) Any of the following payments covered by this Part can be or include a transfer of property:

 (a) a contribution;

 (b) a *superannuation lump sum.

 (2) The amount of the payment is or includes the *market value of the property.

 (3) The *market value is reduced by the value of any consideration given for the transfer of the property.

11  Paragraph 29085(1)(b)

Omit “employee.”, substitute “employee; or”.

12  At the end of subsection 29085(1)

Add:

 (c) is a payment in lieu of salary or wages that relate to a period of service during which the other person was your employee, and is made within 2 months after the person stopped being your employee.

13  After subsection 29085(1)

Insert:

 (1A) Section 29060 also applies as modified by this section if:

 (a) you make a contribution in respect of another person at a time; and

 (b) the other person had been employed by a company or other entity before that time; and

 (c) section 29090 would apply in relation to the contribution if the other person were employed by the company or entity at that time; and

 (d) the contribution:

 (i) reduces the company’s or entity’s charge percentage under section 22 or 23 of the Superannuation Guarantee (Administration) Act 1992 in respect of the other person because of section 15B of that Act; or

 (ii) is a oneoff payment in lieu of salary or wages that relate to a period of service during which the other person was the company’s or entity’s employee; or

 (iii) is a payment in lieu of salary or wages that relate to a period of service during which the other person was the company’s or entity’s employee, and is made within 2 months after the person stopped being the company’s or entity’s employee.

14  Subsection 29085(3)

Repeal the subsection, substitute:

 (3) Despite subsection 29060(2):

 (a) if subsection (1) applies—the condition in section 29070 must be satisfied at the most recent time when the other person was your employee (apart from subsection (2) of this section); or

 (b) if subsection (1A) applies:

 (i) the condition in section 29070 need not be satisfied; and

 (ii) instead, the condition in subsection 29090(4) must be satisfied at the most recent time when the other person was the company’s or entity’s employee.

15  After subsection 290180(3)

Insert:

 (3A) The variation is not effective if, when you make it:

 (a) you were not a member of the fund or the holder of the *RSA; or

 (b) the trustee or *RSA provider no longer holds the contribution; or

 (c) the trustee or RSA provider has begun to pay a *superannuation income stream based in whole or part on the contribution.

16  Subsection 29225(3)

Repeal the subsection, substitute:

 (3) An amount in a *complying superannuation plan is covered under this subsection if it is allocated by the *superannuation provider in relation to the plan for you for the year in accordance with conditions specified in the regulations.

17  After paragraph 29290(1)(a)

Insert:

 (aa) each amount covered under subsection (4); and

18  At the end of section 29290

Add:

 (4) An amount is covered under this subsection if it is any of the following:

 (a) an amount in a *complying superannuation plan that is allocated by the *superannuation provider in relation to that plan for you for the year in accordance with conditions specified in the regulations;

 (b) the amount of any contribution made to that plan in respect of you in the year that is covered by a valid and acknowledged notice under section 290170, to the extent that it is not allowable as a deduction for the person making the contribution;

 (c) the sum of each contribution made to that plan in respect of you at a time on or after 10 May 2006 when that plan was not a complying superannuation plan (other than a contribution covered under this paragraph in relation to a previous financial year).

19  Paragraph 292100(2)(b)

Omit “no later than either of the following”, substitute “on or before the later of the following days”.

20  Paragraph 292100(7)(b)

Omit “no later than either of the following”, substitute “on or before the later of the following days”.

21  Paragraph 292170(6)(d)

Repeal the paragraph, substitute:

 (d) the conditions (if any) specified in the regulations are satisfied.

22  Paragraph 292170(7)(c)

Repeal the paragraph, substitute:

 (c) the entire *value of the original interest:

 (i) was transferred directly to the current interest after 5 September 2006; or

 (ii) was transferred to another superannuation interest after 5 September 2006, and was later transferred to the current interest (whether directly or through a series of transfers between superannuation interests);

23  Paragraph 292170(7)(d)

After “your rights” (wherever occurring), insert “to accrue future benefits”.

24  Paragraph 292170(7)(e)

Repeal the paragraph, substitute:

 (e) either:

 (i) the notional taxed contributions mentioned in paragraph (6)(b) do not exceed what they would have been if the transfer mentioned in paragraph (c) had not taken place; or

 (ii) the conditions (if any) specified in the regulations are satisfied;

25  Paragraph 292170(7)(f)

Omit “requirements”, substitute “conditions”.

26  Paragraph 292330(b)

Omit “to reduce the assessment”.

27  Subsection 292410(1)

After “for the person”, insert “in a *complying superannuation plan”.

28  Paragraph 292410(2)(b)

After “for the person”, insert “in a *complying superannuation plan”.

29  Subsection 292410(2)

After “a superannuation interest for the person”, insert “in a complying superannuation plan”.

30  Subparagraph 292410(3)(c)(i)

After “for the person”, insert “in a *complying superannuation plan”.

31  Paragraph 292415(1)(c)

Repeal the paragraph, substitute:

 (c) the sum of the *values of every *superannuation interest (other than a *defined benefit interest) held by the superannuation provider for the person in:

 (i) for a release authority given under subsection 292410(1)—*complying superannuation plans; or

 (ii) for a release authority given under subsection 292410(4)—*superannuation plans.

32  Subsection 292415(2)

Repeal the subsection, substitute:

 (2) The payment must be made out of one or more *superannuation interests (other than a *defined benefit interest) held by the *superannuation provider for the person in:

 (a) for a release authority given under subsection 292410(1)—*complying superannuation plans; or

 (b) for a release authority given under subsection 292410(4)—*superannuation plans.

33  Subsection 295180(1)

Omit “*complying superannuation fund”, substitute “*public sector superannuation scheme”.

34  Subsection 295180(5)

Omit “*superannuation plan”, substitute “*public sector superannuation scheme”.

35  At the end of section 30410

Add:

 (5) For the purposes of this section, treat your receipt of a benefit (other than a *superannuation benefit) out of, or attributable to, the assets of a *superannuation plan as your receipt of a superannuation benefit.

36  Paragraph 30710(a)

Omit “perform normal employment duties”, substitute “engage in *gainful employment”.

37  After paragraph 30710(a)

Insert:

 (aa) a benefit to which subsection 26AF(1) or 26AFA(1) of the Income Tax Assessment Act 1936 applies;

 (ab) an amount required by the Bankruptcy Act 1966 to be paid to a trustee;

38  Paragraph 307285(1)(a)

Omit “*superannuation fund”, substitute “*public sector superannuation scheme”.

39  Paragraph 307285(1)(b)

Omit “fund” (first occurring), substitute “scheme”.

40  Paragraph 307285(1)(d)

Omit “superannuation fund”, substitute “scheme”.

41  Subsection 307285(2)

Omit “fund”, substitute “scheme”.

42  Subsection 307295(3) (method statement, step 1)

After “Subdivide the”, insert “*taxable component of the”.

43  Subsection 307295(3) (method statement, step 1, paragraph (b))

After “of the”, insert “taxable component of the”.

44  After subsection 307350(2)

Insert:

 (2A) For the purposes of subsection (2), disregard subsection 3075(8).

Income Tax (Transitional Provisions) Act 1997

45  At the end of Division 290

Add:

29015  Early balancers—deduction limits from end of 20062007 income year to 1 July 2007

 (1) This section applies if a person’s 20062007 income year ends before the end of the 20062007 financial year.

 (2) The object of this section is to apply (with modifications) provisions limiting deductibility in respect of certain contributions made during the period that:

 (a) starts when the person’s 20062007 income year ends; and

 (b) ends just before 1 July 2007.

 (3) The provisions are as follows:

 (a) Subdivisions AA and AB of Division 3 of Part III of the Income Tax Assessment Act 1936, as in force just before they were repealed by the Superannuation Legislation Amendment (Simplification) Act 2007;

 (b) any other provision of the Income Tax Assessment Act 1936, or of any instrument made under that Act, to the extent that it relates to the operation of those Subdivisions;

 (c) any other provision of any other Act, or of any instrument made under any other Act, to the extent that it relates to the operation of those Subdivisions.

 (4) Those provisions apply in relation to the period mentioned in subsection (2), and do so as if:

 (a) that period were the 20072008 income year; and

 (b) the deduction limit mentioned in section 82AAC for the 20062007 income year were the deduction limit for the income year mentioned in paragraph (a); and

 (c) the deduction limit mentioned in section 82AAT for the 20062007 income year were the deduction limit for the income year mentioned in paragraph (a); and

 (d) Division 290 of the Income Tax Assessment Act 1997 did not apply to contributions made during the income year mentioned in paragraph (a).

46  After paragraph 29280(3)(e)

Insert:

 (ea) in a case where paragraph 29295(1)(b) of that Act would have allowed the contribution mentioned in that paragraph to be made at a time within that period—that paragraph allowed the contribution to be made on or before 30 June 2007; and

47  After paragraph 29280(3)(f)

Insert:

 (fa) in a case where subsection 292100(2), (4), (7) or (8) of that Act would have allowed the contribution mentioned in that subsection to be made at a time within that period—that subsection allowed the contribution to be made on or before 30 June 2007; and

48  Section 29280B

After “for the person”, insert “in a complying superannuation plan”.

49  Paragraph 29280C(1)(c)

After “for the person”, insert “in complying superannuation plans”.

50  Subsection 29280C(2)

After “for the person”, insert “in complying superannuation plans”.

Superannuation Guarantee (Administration) Act 1992

52  After section 15B

Insert:

15C  Certificates of coverage for international social security agreements

 (1) This section applies if a scheduled international social security agreement (within the meaning of section 5 of the Social Security (International Agreements) Act 1999) prevents double coverage of the compulsory retirement savings arrangements under the laws of the parties to the agreement.

 (2) An entity mentioned in subsection (3) may apply in writing to the Commissioner for a certificate under subsection (4) covering the employment of a particular employee.

 (3) For the purposes of subsection (2), the entity must be:

 (a) if the employee’s employer is not a resident of Australia—a related entity (within the meaning of the agreement) of the employer; or

 (b) otherwise—the employee’s employer.

 (4) The Commissioner may give the entity that made the application a certificate under this subsection if the Commissioner is satisfied that doing so is in accordance with the agreement mentioned in subsection (1).

 (5) The certificate must:

 (a) state the name of the employer and the employee; and

 (b) state the time at which, or the circumstances in which, the certificate stops covering the employment; and

 (c) contain any other information that the Commissioner considers relevant.

 (6) The Commissioner may revoke or vary a certificate under subsection (4), if doing so would be in accordance with the administrative arrangements to the agreement mentioned in subsection (1) that are agreed between the parties to the agreement.

 (7) A person who is dissatisfied with a decision of the Commissioner under subsection (4) or (6) may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953.

 (8) If the entity that made the application is not the employee’s employer, this Part (apart from this section) applies to salary or wages relating to employment covered by the certificate that are paid to the employee as if the entity that made the application were the employee’s employer.

53  At the end of paragraph 27(1)(b)

After “Australia”, insert “(except to the extent that the salary or wages relate to employment covered by a certificate under section 15C)”.

Superannuation Industry (Supervision) Act 1993

54  After section 104

Insert:

104A  Trustees etc. of self managed superannuation fund—recognition of obligations and responsibilities

 (1) This section applies to a person if:

 (a) he or she becomes, after 30 June 2007:

 (i) the trustee of a self managed superannuation fund; or

 (ii) a director of a body corporate that is the trustee of a self managed superannuation fund; or

 (b) he or she is a trustee of such a fund or a director of such a body corporate, and another person becomes, after 30 June 2007, a trustee of the fund or a director of the body corporate.

 (2) The person must:

 (a) if paragraph (1)(a) applies—sign a declaration in the approved form that he or she understands his or her duties as trustee of a self managed superannuation fund (or as director of a body corporate that is such a trustee), no later than 21 days after becoming such a trustee or director; and

 (b) if paragraph (1)(b) applies—ensure that the other person signs a declaration in the approved form that he or she understands his or her duties as trustee of a self managed superannuation fund (or as director of a body corporate that is such a trustee), within 21 days after becoming such a trustee or director; and

 (c) ensure that the declaration is retained so long as it is relevant, and in any case for at least 10 years; and

 (d) make the declaration available for inspection by a member of the staff of the Regulator if requested to do so by a member of that staff.

 (3) A person is guilty of an offence if the person contravenes subsection (2). This is an offence of strict liability.

Maximum penalty: 50 penalty units.

Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2: For strict liability, see section 6.1 of the Criminal Code.

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

55  Section 15DD

Repeal the section.

56  Section 15DE

Repeal the section.

57  Application

 The amendments made by the previous 2 items of this Schedule apply to the 20072008 income year and later years.

Superannuation (Unclaimed Money and Lost Members) Act 1999

58  Subsection 18(1)

Repeal the subsection, substitute:

 (1) This section applies to a superannuation provider if:

 (a) the superannuation provider is the trustee of a State or Territory public sector superannuation scheme; and

 (b) a law of a State or Territory satisfies the requirements set out in subsections (4) and (5).

Note: The heading to section 18 is replaced by the heading “Payment of unclaimed money—State or Territory public sector superannuation schemes”.

59  At the end of section 18

Add:

 (7) In this section:

State or Territory public sector superannuation scheme means a scheme for the payment of superannuation, retirement or death benefits, where the scheme is established:

 (a) by or under a law of a State or a law of a Territory; or

 (b) under the authority of:

 (i) the government of a State or Territory; or

 (ii) a municipal corporation, another local governing body or a public authority constituted by or under a law of a State or a law of a Territory.

60  Application

The amendments made by the previous 2 items apply in relation to statements required to be given under section 16 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the halfyear ending on 30 June 2007 and later halfyears.

Taxation Administration Act 1953

61  After paragraph 14ZW(1)(aaa)

Insert:

 (aab) if the taxation objection is made under section 292245 of the Income Tax Assessment Act 1997—4 years after notice of the assessment concerned is given to the person; or

62  Paragraph 14ZW(1B)(b)

After “(1)(aaa),”, insert “(aab),”.

63  Subsection 121(1) in Schedule 1

After “1280”, insert “, 1285”.

64  After subsection 121(1) in Schedule 1

Insert:

Nonassessable nonexempt income of recipient

 (1A) An entity need not withhold an amount under Subdivision 12B, Subdivision 12C or section 12120 or 12190 from a payment if the whole of the payment is not assessable income and is not *exempt income of the entity receiving the payment.

65  Section 1875 in Schedule 1

Repeal the section.

66  Application

(1) The amendments made to the following Acts by this Schedule apply to the 20072008 income year and later years:

 (a) the Child Support (Registration and Collection) Act 1988; and

 (b) the Income Tax Assessment Act 1997; and

 (c) the Income Tax (Transitional Provisions) Act 1997; and

 (d) the Taxation Administration Act 1953.

(2) Despite subitem (1), those amendments apply to the 20072008 financial year and later years, to the extent that they relate to Division 292 of the Income Tax Assessment Act 1997.

(3) Despite subitem (1), those amendments apply on and after 1 July 2007, to the extent that they relate to any of the following:

 (a) Divisions 82 and 83 of the Income Tax Assessment Act 1997;

 (b) Divisions 301 to 307 of that Act.

Schedule 4Technical corrections

 

Income Tax Assessment Act 1997

1  Subsection 83180(5)

Omit “*employment termination payment”, substitute “payment”.

2  Subsection 83180(5)

Omit “employment termination payment”, substitute “payment”.

3  Subparagraph 290170(2)(c)(iii)

Omit “contributions”, substitute “contribution”.

4  Section 3025

Omit “are”.

5  Paragraph 3025(a)

Before “paid”, insert “are”.

6  Paragraph 3025(b)

Before “*superannuation guarantee payments”, insert “are”.

7  Paragraph 960285(2)(a)

After “income year”, insert “or financial year”.

8  Subsection 960285(4) (formula)

After “income year”, insert “or financial year”.

Income Tax (Transitional Provisions) Act 1997

9  Paragraph 8210D(2)(b)

Omit “transitional”, substitute “termination”.

10  Part 310

Relocate the Part to immediately after Part 36.

11  Paragraphs 307125(6)(b) and (c)

Omit “item”, substitute “section”.

Taxation Administration Act 1953

12  Paragraph 2985(c) in Schedule 1

Omit “this Schedule; or”, substitute “this Schedule.”.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

 

Endnote 2—Abbreviation key

 

ad = added or inserted

o = order(s)

am = amended

Ord = Ordinance

amdt = amendment

orig = original

c = clause(s)

par = paragraph(s)/subparagraph(s)

C[x] = Compilation No. x

    /subsubparagraph(s)

Ch = Chapter(s)

pres = present

def = definition(s)

prev = previous

Dict = Dictionary

(prev…) = previously

disallowed = disallowed by Parliament

Pt = Part(s)

Div = Division(s)

r = regulation(s)/rule(s)

ed = editorial change

reloc = relocated

exp = expires/expired or ceases/ceased to have

renum = renumbered

    effect

rep = repealed

F = Federal Register of Legislation

rs = repealed and substituted

gaz = gazette

s = section(s)/subsection(s)

LA = Legislation Act 2003

Sch = Schedule(s)

LIA = Legislative Instruments Act 2003

Sdiv = Subdivision(s)

(md) = misdescribed amendment can be given

SLI = Select Legislative Instrument

    effect

SR = Statutory Rules

(md not incorp) = misdescribed amendment

SubCh = SubChapter(s)

    cannot be given effect

SubPt = Subpart(s)

mod = modified/modification

underlining = whole or part not

No. = Number(s)

    commenced or to be commenced

 

Endnote 3—Legislation history

 

Act

Number and year

Assent

Commencement

Application, saving and transitional provisions

Superannuation Legislation Amendment (Simplification) Act 2007

15, 2007

15 Mar 2007

Sch 2 and Sch 4 (item 10): 12 Apr 2007 (s 2(1) items 3, 10)
Sch 3 (items 1–3, 54): 1 July 2007 (s 2(1) items 4, 5, 7)
Remainder: 15 Mar 2007 (s 2(1) items 1, 2, 6, 7, 8, 9, 11, 12)

 

Tax Laws Amendment (2007 Measures No. 4) Act 2007

143, 2007

24 Sept 2007

Sch 5 (items 28, 48(1)): 24 Sept 2007 (s 2(1) items 5, 7)

Sch 5 (item 48(1))

Tax Laws Amendment (2009 Measures No. 6) Act 2010

19, 2010

24 Mar 2010

Sch 3 (items 9, 10): 15 Mar 2007 (s 2(1) item 8)
Sch 3 (item 12): 24 Mar 2010 (s 2(1) item 9)

Sch 3 (item 12)

Acts and Instruments (Framework Reform) (Consequential Provisions) Act 2015

126, 2015

10 Sept 2015

Sch 1 (item 589): 5 Mar 2016 (s 2(1) item 2)

 

Endnote 4—Amendment history

 

Provision affected

How affected

s 4.....................

am No 126, 2015

Schedule 1

 

Part 2

 

item 237.................

rep No 19, 2010

item 238.................

rep No 19, 2010

item 239.................

rep No 19, 2010

item 241.................

rep No 19, 2010

Schedule 2

 

item 12..................

rs No 143, 2007

Schedule 3

 

item 51..................

rep No 19, 2010