Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 291 - Excess concessional contributions  

Subdivision 291-C - Modifications for defined benefit interests  

SECTION 291-170.03   NOTIONAL TAXED CONTRIBUTIONS - CONTRIBUTIONS FOR FUNDS TO WHICH SECTION 291-170.02 DOES NOT APPLY  

291-170.03(1)    
For the purposes of subsection 291-170(1) of the Act, this section gives the meaning of notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund (other than a superannuation fund to which section 291-170.02 of this instrument applies).

Note:

Section 291-170.04 specifies circumstances in which, despite this section, the amount of notional taxed contributions is nil.

291-170.03(2)    
The member ' s notional taxed contributions for the financial year are:

(a)    the amounts of assessable contributions which have been allocated to the member in the financial year in accordance with regulation 7.11 of the SIS Regulations; and

(b)    if an amount is allocated to the member from a reserve, other than in the circumstances mentioned in subsection (3) :

(i) the amount, unless subparagraph (ii) applies; or

(ii) if the amount is allocated in lieu of a contribution to the fund (less any allowance for tax) which would have been assessable income of the fund - the amount multiplied by 1.176.

Example:

An employer has an obligation to make a $1,000 contribution. Instead of the employer making a contribution to the fund, the trustee allocates $850 to the member ' s account (which is an amount equivalent to the amount that would be credited to the account after tax was paid). For the purposes of subparagraph (b)(ii) , the amount of $850 is to be multiplied by 1.176.

291-170.03(3)    
For the purposes of paragraph (2)(b) , the circumstances are that:

(a)    the amount is allocated from a reserve used solely for the purpose of enabling the fund to discharge all or part of its liabilities (contingent or not), as soon as they become due, in respect of superannuation income stream benefits that are payable by the fund at that time; and

(b)    any of the circumstances in subsection (4) apply.

291-170.03(4)    
For the purposes of paragraph (3)(b) , the circumstances are the following:

(a)    the amount has been allocated to satisfy a pension liability of the fund paid during the financial year;

(b)    on the commutation of a superannuation income stream, except as a result of the death of the primary beneficiary, the amount is allocated to the recipient of the superannuation income stream, to commence another superannuation income stream, as soon as practicable;

(c)    on the commutation of a superannuation income stream as a result of the death of the primary beneficiary, the amount:

(i) is allocated to a death benefits dependant to discharge liabilities in respect of a superannuation income stream benefit that is payable by the fund as a result of the death; or

(ii) if subparagraph (i) does not apply - is paid as a superannuation lump sum and as a superannuation death benefit;

as soon as practicable.