Income Tax Assessment Act 1936
View history note
Hide history noteDiv 3 heading inserted by No 172 of 1978.
Subdiv AA repealed by No 15 of 2007, s 3 and Sch 1 item 5, applicable to the 2007-2008 income year and later years.
(Repealed by No 15 of 2007)
S 82AAC repealed by No 15 of 2007, s 3 and Sch 1 item 5, applicable to the 2007-2008 income year and later years. S 82AAC formerly read:
A deduction may be denied by section
85-25
of the
Income Tax Assessment Act 1997
if the eligible employee is an associate of the taxpayer. Section
86-60
of the
Income Tax Assessment Act 1997
(read together with section
86-75
of that Act) limits the extent to which superannuation contributions by personal service entities are allowable deductions. However, a deduction might be denied or reduced by section
26-80
of the
Income Tax Assessment Act 1997
if the contribution is made more than 28 days after the month in which the eligible employee turns 70.
SECTION 82AAC DEDUCTION FOR CONTRIBUTIONS TO ELIGIBLE SUPERANNUATION FUND FOR EMPLOYEES
82AAC(1)
The amount of a contribution made by a taxpayer is allowable as a deduction to the taxpayer for the year of income of the taxpayer in which the contribution was made if:
(a)
the contribution was made to a fund for the purpose of making provision for superannuation benefits payable for another person (whether or not the benefits are payable to a dependant of the other person if the other person dies before or after becoming entitled to receive the benefits); and
(b)
the fund is a complying superannuation fund, within the meaning of Part
IX
, in relation to the year of income of the fund in which the contribution is made; and
(c)
one or more of these applies:
(i)
the other person was an eligible employee;
(ii)
the contribution reduces the taxpayer
'
s charge percentage in respect of the other person under section
22
or
23
of the
Superannuation Guarantee (Administration) Act 1992
;
(iii)
the other person was an employee for the purposes of that Act.
Note 1:
Note 2:
Note 3:
S 82AAC(1) (not including the notes) substituted by No 147 of 2005, s 3 and Sch 7 item 1, applicable to payments made on or after the first day of the first quarter after the quarter in which No 147 of 2005 received the Royal Assent [ ie 14 December 2005]. No 147 of 2005, s 3 and Sch 7 item 19, contains the following provision:
Previous interpretation preserved
19
The amendment is not to be taken to affect by implication the interpretation of a provision amended at a time before commencement.
S 82AAC(1) amended by No 51 of 2002, No 86 of 2000, No 169 of 1995 and No 181 of 1994.
82AAC(1A)
However, a contribution is not an allowable deduction under subsection (1) if it is an amount paid by the member spouse, as mentioned in regulations under the Family Law Act 1975 , to a regulated superannuation fund, or to an RSA, to be held for the benefit of the non-member spouse in satisfaction of the non-member spouse ' s entitlement in respect of the superannuation interest concerned.
S 82AAC(1A) inserted by No 78 of 2005.
82AAC(2)
The total of the deductions allowable under subsection (1) for contributions made by a taxpayer, or by a taxpayer and one or more associates of the taxpayer, in a year of income in respect of a particular person must not exceed the person ' s deduction limit for the year of income (worked out under subsection (2A)).
S 82AAC(2) amended by No 147 of 2005, s 3 and Sch 7 items 2 and 3, applicable to payments made on or after the first day of the first quarter in which No 147 of 2005 received the Royal Assent [ ie 14 December 2005]. No 147 of 2005, s 3 and Sch 7 item 19, contains the following provision:
Previous interpretation preserved
19
The amendment is not to be taken to affect by implication the interpretation of a provision amended at a time before commencement.
S 82AAC(2) amended by No 95 of 1997 and inserted by No 61 of 1990.
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(2A)
A person ' s deduction limit for a year of income is worked out:
(a) by identifying the day in the year of income, or the last day in the year of income, on which the taxpayer, or any of the associates of the taxpayer, made a contribution in respect of the person, where a deduction would have been allowable to the taxpayer, or to the associate, under subsection (1) for that contribution (assuming subsection (2) had not been enacted); and
(b) by working out the age reached by the person as at the end of that day; and
(c) if the year of income is the 1994-95 year of income - by applying the following table:
| Age in years | Deduction limit | ||
| under 35 | $9,000 | ||
| 35 to 49 | $25,000 | ||
| 50 and over | $62,000 | ; and | |
(d) if the year of income is a later year of income - by applying that table subject to the indexation arrangements set out in subsection (2B).
[ CCH Note: The age-based deduction limits for employer superannuation contributions from 1995/96, as altered under s 82AAC(2B), are as follows:
|
Income
year |
Age-based deduction limits | ||
| Under 35 | 35 to 49 | 50 + | |
| 1995/96 | $ 9,405 | $26,125 | $64,790 |
| 1996/97 | $ 9,782 | $27,170 | $67,382 |
| 1997/98 | $10,232 | $28,420 | $70,482 |
| 1998/99 | $10,600 | $29,443 | $73,019 |
| 1999/2000 | $10,929 | $30,356 | $75,283 |
| 2000/01 | $11,388 | $31,631 | $78,445 |
| 2001/02 | $11,912 | $33,086 | $82,053 |
| 2002/03 | $12,651 | $35,138 | $87,141 |
| 2003/04 | $13,233 | $36,754 | $91,149 |
| 2004/05 | $13,934 | $38,702 | $95,980 |
| 2005/06 | $14,603 | $40,560 | $100,587 |
| 2006/07 | $15,260 | $42,385 | $105,113 |
S 82AAC(2A) amended by No 147 of 2005, s 3 and Sch 7 items 4 and 5, applicable to payments made on or after the first day of the first quarter after the quarter in which No 147 of 2005 received the Royal Assent [ ie 14 December 2005]. No 147 of 2005, s 3 and Sch 7 item 19, contains the following provision:
Previous interpretation preserved
19
The amendment is not to be taken to affect by implication the interpretation of a provision amended at a time before commencement.
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
S 82AAC(2A) inserted by No 80 of 1992.
82AAC(2B)
The table in subsection (2A) applies for the 1995-96 year of income or a later year of income as if each indexable amount were replaced by the amount worked out using the formula:
| Indexation factor × Previous indexable amount |
where:
Indexation factor means the indexation factor for the year of income worked out under section 159SG .
Previous indexable amount means the indexable amount concerned for the previous year of income.
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(2C)
In subsection (2B):
indexable amount
means:
(a) an amount of $9,000, $25,000 or $62,000 specified in the table in subsection (2A); or
(b) if any such amount has previously been altered under subsection (2B) - the altered amount.
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(2D)
(Omitted by No 95 of 1997)
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(2E)
(Omitted by No 95 of 1997)
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(2F)
(Omitted by No 95 of 1997)
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(2G)
(Omitted by No 95 of 1997)
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(2H)
(Omitted by No 95 of 1997)
S 82AAC(2) and (2A) - (2H) substituted for 82AAC(2) and (2A) by No 208 of 1992.
82AAC(3)
In this section:
associate
, in relation to a person, has the same meaning as in section
318
.
member spouse
has the same meaning as in Part VIIIB of the
Family Law Act 1975
.
non-member spouse
has the same meaning as in Part VIIIB of the
Family Law Act 1975
.
regulated superannuation fund
has the same meaning as in Part VIIIB of the
Family Law Act 1975
.
RSA
has the same meaning as in Part VIIIB of the
Family Law Act 1975
.
superannuation interest
has the same meaning as in Part VIIIB of the
Family Law Act 1975
S 82AAC(3) amended by No 101 of 2006 , s 3 and Sch 2 item 256, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 82AAC(3) amended by No 78 of 2005, inserted by No 61 of 1990.
S 82AAC substituted for s 82AAB - 82AAP by No 97 of 1989.
Former s 82AAC(2) inserted by No 47 of 1984.
Former s 82AAC(3) inserted by No 123 of 1985.
Former s 82AAC inserted by No 110 of 1964.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.