First Home Saver Accounts (Consequential Amendments) Act 2008 (45 of 2008)

Schedule 1   Main taxation related amendments

Income Tax Assessment Act 1997

23   Subsection 295-10(2)

Repeal the subsection, substitute:

(2) Use this method for *RSA providers:

Method statement

Step 1. Work out the entity’s *no-TFN contributions income. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to that income.

Step 2. Work out the entity’s assessable income and deductions taking account of the special rules in this Division.

Step 3. Work out the *RSA component and *standard component of the entity’s taxable income.

Step 4. If the entity is also an *FHSA provider, work out the *FHSA component of the entity’s taxable income.

Step 5. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to the components. The *RSA component and the *FHSA component are taxed at a concessional rate.

Step 6. Subtract the entity’s *tax offsets from the sum of the entity’s step 1 and step 5 amounts.