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Tax Laws Amendment (Superannuation Contributions Splitting) Bill 2005

Schedule 1 Superannuation contributions splitting

   

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 paragraphs (a) and (b) of the definition of eligible service period )

Add “or”.

3  Subsection 27A(1) (after paragraph (b) of the definition of eligible service period )

Insert:

                    (ba)  where the relevant eligible termination payment is an eligible termination payment by virtue of paragraph (bb) of the definition of eligible termination payment —a period of zero days; or

4  Subsection 27A(1) (at the end of paragraph (c) of the definition of eligible service period )

Add “or”.

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

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

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

Add “or”.

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

Add “or”.

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

Insert:

                            (iv)  that is a contributions-splitting ETP;

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

Insert:

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

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

After “but does not include”, insert “any of the following”.

11  Subsection 27A(1) (paragraph (n) of the definition of eligible termination payment )

Omit “exertion; or”, substitute “exertion;”.

12  Subsection 27A(1) (sub-subparagraph (p)(ii)(B) of the definition of eligible termination payment )

Omit “or”.

13  Subsection 27A(1) (paragraphs (q) and (qa) of the definition of eligible termination payment )

Omit “or”.

14  Subsection 27A(1) (subparagraph (r)(ii) of the definition of eligible termination payment )

Omit “or”.

15  Subsection 27A(12)

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

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

After “(b)”, insert “or (bb)”.

17  At the end of section 27D

Add:

             (8)  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.

18  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.

19  Subsection 82AAS(1)

Insert:

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

20  At the end of subsection 82AAT(1B)

Add:

                   ; (d)  if:

                              (i)  a person has made a contributions-splitting application in respect of contributions made to the fund during a year of income; and

                             (ii)  the trustee of the fund has not rejected the application;

                            the person cannot give a notice in respect of those contributions.

Note:          Paragraph (d) does not prevent a person from giving a notice under subsection (1A) before the person makes a contributions-splitting application in respect of the contributions.

21  After subsection 82AAT(1B)

Insert:

        (1BA)  In subsection (1B):

contributions-splitting application means an application designated in the regulations as a contributions-splitting application.

22  At the end of subsection 82AAT(1CC)

Add:

                   ; (d)  if:

                              (i)  a person has made a contributions-splitting application in respect of contributions made to the RSA during a year of income; and

                             (ii)  the provider of the RSA has not rejected the application;

                            the person cannot give a notice in respect of those contributions.

Note:          Paragraph (d) does not prevent a person from giving a notice under subsection (1A) before the person makes a contributions-splitting application in respect of the contributions.

23  After subsection 82AAT(1CC)

Insert:

     (1CCA)  In subsection (1CC):

contributions-splitting application has the same meaning as in subsection (1BA).

 

 

 

 

 

[ Minister’s second reading speech made in—

House of Representatives on 12 October 2005

Senate on 28 November 2005 ]

(164/05)