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This is a Bill, not an Act. For current law, see the Acts databases.
2002-2003
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Taxation
Laws Amendment (Superannuation Contributions Splitting) Bill
2003
No. ,
2003
(Treasury)
A Bill
for an Act in respect of taxation measures relating to superannuation, and for
related purposes
Contents
Income Tax Assessment Act
1936 3
Superannuation Contributions Tax (Assessment and Collection) Act
1997 5
A Bill for an Act in respect of taxation measures
relating to superannuation, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Taxation Laws Amendment (Superannuation
Contributions Splitting) Act 2003.
This Act commences on the day on which it receives the Royal
Assent.
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repealed as set out in the applicable items in the Schedule concerned, and any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.
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:
(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:
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”.