Income Tax Assessment Act 1936

Part IX repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-2008 income year and later years.

Former Part IX inserted by No 97 of 1989 and amended by No 105 of 1989.

Div 3 repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-08 income year and later years.

S 279D repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-08 income year and later years. S 279D formerly read:

SECTION 279D DEDUCTION FOR CERTAIN POTENTIAL DETRIMENT PAYMENTS MADE AFTER THE DEATH OF A FUND MEMBER  
279D(1) [When deduction allowable]  

Where:

(a) after the death of a person (in this section called the " deceased person " ):

(i) the trustee of a continuously complying superannuation fund or continuously complying ADF (in this section called the " paying entity " ) makes a payment to another person (in this section called the " recipient " ) by reason that the deceased person was a member of the fund; or

(ii) a life assurance company (in this section also called the " paying entity " ) makes a payment to another person (in this section also called the " recipient " ) in relation to the commutation of, or of the residual capital value of, either an exempt life insurance policy (as defined in the Income Tax Assessment Act 1997 ) or a life assurance policy covered by subparagraph (b)(i) of the definition of virtual PST life insurance policy in subsection 995-1(1) of that Act while the policy was held by the deceased person, by reason that the deceased person would have been entitled to receive the annuity concerned;

(b) the recipient is the trustee of the estate of the deceased person or is a person who:

(i) was a dependant of the deceased person immediately before the deceased person ' s death; or

(ii) was a dependant of the deceased person immediately before the time of payment; and

(c) the Commissioner is satisfied that the paying entity has passed on to the recipient the whole of the benefit that would accrue to the paying entity if a deduction were allowed under this section in respect of the payment;

an amount calculated under subsection (2) is allowable as a deduction from the assessable income of the paying entity of the year of income in which the payment is made.

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History

S 279D(1) amended by No 101 of 2004.

279D(2) [Calculation of deduction]  

The deduction under subsection (1) in respect of a payment (in this subsection called the " actual payment " ) in respect of a year of income is calculated using the formula:

Notional payment reduction due to contributions tax Complying superannuation tax rate

where:

Notional payment reduction due to contributions tax is the difference between:

(a) the amount that would have been the amount of the actual payment if:

(i) no amounts were included in assessable income in relation to taxable contributions made to a complying superannuation fund; and

(ii) it had been expected that no deduction would be allowable under this section in respect of the actual payment; and

(b) the amount that would have been the amount of the actual payment if it had been expected that no deduction would be allowable under this section in respect of the payment;

Complying superannuation tax rate is the rate of tax imposed on the standard component of the taxable incomes of complying superannuation funds of the year of income.

279D(3) [Limit of deduction]  

If the recipient is the trustee of the estate of the deceased person, the deduction allowable is only so much of the amount calculated under subsection (2) as the Commissioner considers appropriate having regard to the extent to which the dependants of the deceased person may reasonably be expected to benefit from the estate.

279D(4) [ " dependant " ]  

In this section:

"dependant"
has the meaning given by paragraph (a) of the definition of " dependant " in subsection 27A(1) .

S 279D inserted by No 105 of 1989.