Taxation Laws Amendment Act (No. 3) 1997 (147 of 1997)

Schedule 10   Rebate for superannuation contributions made on behalf of a low-income or non-working spouse

Income Tax Assessment Act 1936

1   After Subdivision AAC of Division 17 of Part III

Insert:

Subdivision AACA - Rebate for superannuation contributions made on behalf of a low income or non-working spouse

159T Rebate for superannuation contributions made in relation to a spouse

(1) This section applies if the following conditions are satisfied in relation to a taxpayer and in relation to a year of income of the taxpayer:

(a) the taxpayer has a spouse in relation to whom he or she makes one or more eligible spouse contributions; and

(b) the taxpayer and his or her spouse are residents at the time that the taxpayer makes the eligible spouse contribution; and

(c) the spouse's assessable income is less than $13,800.

Note: For the meaning of eligible spouse contribution , see section 159TC.

(2) The taxpayer is entitled to a rebate of tax in the taxpayer's assessment for the year of income equal to 18% of the lesser of:

(a) $3,000 reduced by $1 for every $1 of the amount (if any) by which the spouse's assessable income of that year exceeds $10,800; or

(b) the total of the eligible spouse contributions made in relation to the spouse by the taxpayer in that year.

159TA Taxpayers may qualify for rebate in relation to more than one spouse

If, in relation to a year of income, a taxpayer qualifies for the rebate under section 159T in respect of more than one spouse, the total of rebates under that section for which the taxpayer qualifies is equal to the lesser of:

(a) the sum of the rebate amounts for which the taxpayer qualifies in relation to each spouse; or

(b) $540.

159TB Quotation of tax file number

A taxpayer who qualifies for a rebate under section 159T in respect of an eligible spouse may quote the tax file number of the spouse. The taxpayer must obtain the consent of the spouse to the quotation.

159TC Definitions

For the purposes of this Subdivision:

complying superannuation fund has the same meaning as in Part IX.

dependant has the same meaning as in theSuperannuation Industry (Supervision) Act 1993.

eligible spouse contributions , in relation to a taxpayer, means contributions made by the taxpayer where:

(a) the contributions are made in relation to a person who is the taxpayer's spouse at the time those contributions are made; and

(b) the contributions are made to a fund that is a complying superannuation fund in relation to the year of income of the fund in which the contributions are made; and

(c) the contributions are made to obtain superannuation benefits for the spouse or, in the event of the death of the spouse, for dependants of the spouse; and

(d) the taxpayer is not entitled to a deduction under section 82AAC in relation to the contributions.

spouse , in relation to a taxpayer:

(a) includes another person who, although not legally married to the taxpayer, lives with the taxpayer on a bona fide domestic basis as the husband or wife of the taxpayer;

but:

(b) does not include a person who lives separately and apart from the taxpayer on a permanent basis.