Taxation Laws Amendment (Superannuation) Act 1993 (7 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX RATES ACT 1986

Division 2   Amendments relating to the tax treatment of the excessive component of ETPs

36   Interpretation

Section 3 of the Principal Act is amended:

by omitting the definition of "special income component" in subsection (1) and substituting the following definition:

" 'special income component', in relation to a taxable income for which there is a capital gains amount or an abnormal income amount, means:

(a) so much of the taxable income as does not exceed the capital gains amount, the abnormal income amount or the sum of those amounts, as the case requires; or

(b) if the sum ('the component sum') of:

(i) the amount worked out under paragraph (a); and

(ii) the EC part of the taxable income;

is more than the taxable income-the amount worked out under paragraph (a), reduced by the amount by which the component sum exceeds the taxable income;";

(b) by inserting in subsection (1) the following definitions:

" 'EC part of the taxable income' means so much of the taxable income as does not exceed the excessive component included in assessable income under subsection 27B(3);

'ordinary taxable income' means the taxable income, reduced by the EC part of the taxable income;".