Superannuation Industry (Supervision) Consequential Amendments Act 1993 (82 of 1993)

Part 5   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

34   After Division 10 of Part IX of the Principal Act the following Division is inserted

"Division 11-Tax treatment of matters relating to superannuation (financial assistance funding) levies

Definition

"315A. In this Division:

'financial assistance funding levy' means levy imposed by regulations under section 6 of the Superannuation (Financial Assistance Funding) Levy Act 1993.

Deduction for financial assistance funding levy

"315B. Financial assistance funding levy incurred by a taxpayer is an

allowable deduction for the year of income in which the levy is incurred.

Financial assistance exempt from income tax

"315C. A grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 is exempt from income tax.

Repayment of financial assistance not an allowable deduction

"315D. A repayment of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 is not an allowable deduction.

Amendment of assessments-remission or refund of financial assistance funding levy

"315E.(1) Section 170 does not prevent the amendment of an assessment for the purposes of giving effect to section 315B or 315C.

"(2) The following are examples of situations that could result in such an amendment being made:

(a) the remission of the whole or a part of an amount of financial assistance funding levy;

(b) the refund or other application of an overpayment of financial assistance funding levy.

"(3) For the purposes of section 315B, the effect of a remission of financial assistance funding levy is that the amount remitted is taken never to have been incurred.

This Division to be primary code for tax treatment of matters relating to financial assistance funding levy

"315F. If any of the following events happen:

(a) a taxpayer incurs financial assistance funding levy;

(b) the remission of the whole or a part of an amount of financial assistance funding levy;

(c) the refund or other application of an overpayment of financial assistance funding levy;

the event is to be ignored in determining:

(d) whether an amount is included in the assessable income of a taxpayer under a provision of this Act other than this Division or Part IIIA; or

(e) whether an amount is allowable as a deduction to a taxpayer under a provision of this Act other than this Division; or

(f) whether Part IIIA applies in respect of the disposal of an asset.".