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Taxation Laws Amendment (Superannuation Contributions Splitting) Bill 2003
Schedule 1 Amendments

   

Income Tax Assessment Act 1936

1  Subsection 27A(1)

Insert:

contributions-splitting ETP , in relation to a taxpayer, means an amount:

                     (a)  paid to a superannuation fund, approved deposit fund or life assurance company, or transferred within a superannuation fund, for the benefit of the taxpayer; and

                     (b)  designated as a spouse contributions-splitting amount in regulations made for the purposes of this definition.

2  Subsection 27A(1) (at the end of the definition of eligible service period )

Add:

                   ; (e)  in any other case—a period of zero days.

3  Subsection 27A(1) (definition of eligible termination payment )

After “means”, insert “any of the following”.

4  Subsection 27A(1) (at the end of subparagraph (b)(i) of the definition of eligible termination payment )

Add “or”.

5  Subsection 27A(1) (at the end of subparagraph (b)(iii) of the definition of eligible termination payment )

Add “or”.

6  Subsection 27A(1) (after subparagraph (b)(iii) of the definition of eligible termination payment )

Insert:

                            (iv)  that is a contributions-splitting ETP;

7  Subsection 27A(1) (after paragraph (ba) of the definition of eligible termination payment )

Insert:

                    (bb)  an amount that is a contributions-splitting ETP;

8  Subsection 27A(12)

After “if” (first occurring), insert “it is a contributions-splitting ETP or if”.

9  Subsection 27AB(1) (table item 2, column headed “ETP type”)

After “(b)”, insert “or (bb)”.

10  At the end of section 27D

Add:

             (6)  The regulations may:

                     (a)  provide that, in circumstances prescribed by regulations for the purposes of this paragraph, an election under subsection (1) is taken to have been made in relation to a qualifying eligible termination payment that is a contributions-splitting ETP; and

                     (b)  prescribe matters that are taken to be specified in such an election for the purposes of subsection (1); and

                     (c)  prescribe such other matters as are necessary or convenient for the purposes of applying this section to such an election.

11  After section 27H

Insert:

27HA   Information about contributions-splitting ETPs

             (1)  A person who pays a contributions-splitting ETP in a financial year must give the Commissioner a statement setting out the matters required by the regulations.

             (2)  The statement must be given:

                     (a)  on or before 31 October in the next financial year; or

                     (b)  by such later date (if any) as the Commissioner allows.

12  Subsection 82AAS(1)

Insert:

contributions-splitting ETP has the meaning given by subsection 27A(1).

13  After paragraph 82AAT(1B)(b)

Insert:

                    (ba)  a person cannot give or vary a notice covering a contribution to the extent that the whole or any part of a contributions-splitting ETP is attributable to the contribution;

14  After paragraph 82AAT(1CC)(b)

Insert:

                    (ba)  a person cannot give or vary a notice covering a contribution to the extent that the whole or any part of a contributions-splitting ETP is attributable to the contribution;

Superannuation Contributions Tax (Assessment and Collection) Act 1997

15  Subsection 8A(1A)

Omit “section 10A”, substitute “sections 10A and 10B”.

16  Subsection 10(1A)

Omit “section 10A”, substitute “sections 10A and 10B”.

17  After section 10A

Insert:

10B   Liability for surchargeable contributions included in a contributions-splitting ETP

Payer or member liable

             (1)  If surchargeable contributions of a member for a financial year are included in a contributions-splitting ETP, then the holder of the contributions included in the contributions-splitting ETP, and the person liable to pay the surcharge on them, is:

                     (a)  if, at the time when an assessment is made of the surcharge payable on the surchargeable contributions of the member for the financial year, the superannuation provider who made the contributions-splitting ETP holds any contributed amounts in respect of the member for the financial year—that superannuation provider; and

                     (b)  otherwise—the member.

             (2)  If:

                     (a)  a member is liable to pay an amount to the Commissioner under paragraph (1)(b); and

                     (b)  there is a superannuation provider for the member at the time when the assessment is made;

the member may direct the superannuation provider to pay to the Commissioner the whole or a part of the amount and to make any necessary reduction in the benefits to which the member would otherwise be entitled.

             (3)  A direction under subsection (2) only has effect to the extent that the superannuation provider is able to pay the amount directed out of funds held by the provider on behalf of the member.

             (4)  A superannuation provider to whom a direction is given under subsection (2) must comply with the direction to the extent that it has effect.

Recipient not liable

             (5)  For the purposes of this Act, a superannuation provider is not taken to hold or be the holder of, or be liable for the surcharge on, surchargeable contributions included in a contributions-splitting ETP received by the provider from another superannuation provider.

If member dies

             (6)  If:

                     (a)  a person would, apart from this subsection, be taken under subsection (1) to be the holder of surchargeable contributions of a member for the financial year and liable for the surcharge on them; and

                     (b)  the member died in the financial year;

subsection (1) does not apply in relation to the member in respect of the financial year and later financial years.

If lump sum, pension or annuity paid

             (7)  Despite subsection (1), a superannuation provider is not liable for the surcharge on surchargeable contributions included in a contributions-splitting ETP if the provider:

                     (a)  no longer holds any contributed amounts for the member for the financial year; or

                     (b)  begins to pay a pension or annuity based on contributions of the member;

before a notice of the assessment is given to it.

18  Subsection 13(4)

After “to another superannuation provider”, insert “(other than contributed amounts transferred as a contributions-splitting ETP)”.

19  Subsection 13(4A)

After “to another superannuation provider”, insert “(other than contributed amounts transferred as a contributions-splitting ETP)”.

20  Paragraph 15(5)(a)

After “ceased to hold the contributions”, insert “(otherwise than because the amounts were transferred as a contributions-splitting ETP)”.

21  Paragraph 15B(1)(b)

After “financial year”, insert “(other than amounts held because a contributions-splitting ETP was received by the provider)”.

22  Section 43

Insert:

contributions-splitting ETP has the same meaning as in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act.

23  Section 43 (definition of holder )

Omit “and 10A”, substitute “, 10A and 10B”.