Superannuation Contributions Tax (Assessment and Collection) Act 1997

PART 2 - LIABILITY TO SURCHARGE AND ADVANCE INSTALMENTS  

SECTION 7B   ADJUSTED TAXABLE INCOME - SECOND CASE  

7B(1)    
This section applies to a member for a financial year if:

(a) one or more payments that were eligible termination payments for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act because of paragraph (a) of the definition of eligible termination payment in subsection 27A(1) of that Act were made to or for the member in the financial year; and

(b) the total of the reduced amounts of the payments (other than payments that were rolled over before 1 July 1997) was less than the amount specified in subsection 5(2) of the Superannuation Contributions Tax Imposition Act 1997 as altered under section 7 of that Act for the financial year.

7B(2)    
The reduced amount of an eligible termination payment is the amount (if any) remaining after deducting from the amount of the payment the amount of any post-June 1994 invalidity component or CGT exempt component of the payment or any part of the payment that was made from an employee share acquisition scheme.

7B(3)    
The adjusted taxable income of the member for the financial year is the sum of:

(a) the member's taxable income of the year of income comprising the financial year less any of the following amounts included in the member's assessable income of that year of income:

(i) amounts that were eligible termination payments for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

(ii) amounts that were so included under section 26AC or under subsection 26AD(2) , (3) or (4) of the Income Tax Assessment Act in respect of a bona fide redundancy amount, an early retirement scheme amount or an invalidity amount as defined in section 159S of that Act; and

(b) in respect of the financial year beginning on 1 July 1996 or the following financial year - the amount (if any) by which the amount worked out under paragraph (a) would be increased if it were instead worked out ignoring subsection 271-105(1) in Schedule 2F to the Income Tax Assessment Act; and

(c) in respect of the financial year beginning on 1 July 1998 or a later financial year - the amount (if any) by which the amount worked out under paragraph (a) would be increased if it were instead worked out ignoring paragraphs 102UK(2)(b) and 102UM(2)(b) of, and subsection 271-105(1) in Schedule 2F to, the Income Tax Assessment Act; and

(d) in respect of each eligible termination payment referred to in subsection (1) - whichever of the following amounts is appropriate:

(i) if the post-20 August 1996 period is less than 365 days - the amount (excluding any cents, cent or fraction of a cent included in that amount) worked out using the formula:

Post-20 August 1996 period   Total period

×

ETP

(ii) otherwise - the amount (excluding any cents, cent or fraction of a cent included in that amount) worked out using the formula:

365               Total period

×

ETP

where:

ETP means:

(a) if no part of the payment was rolled-over - so much of the amount of the payment as is included in the member's taxable income of the year of income comprising the financial year; or

(b) if any of the payment was rolled-over - the sum of:

(i) so much of the part (if any) of the payment that was not rolled-over as is included in the member's taxable income of the year of income comprising the financial year; and

(ii) so much of the part of the payment that was rolled-over after 30 June 1997 as would have been included in that taxable income if that part of the payment had not been rolled-over.

post-20 August 1996 period means the number of days in the period of the member's employment for which the eligible termination payment was made that occurred after 20 August 1996.

total period means the number of days in the period of the member's employment for which the eligible termination payment was made; and

(e) the member's surchargeable contributions for the financial year, worked out ignoring subsection 8(8) of this Act and subsection 9(9) of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 , less any amounts included in those surchargeable contributions because of subparagraph 8(2)(c)(iii) ; and

(f) in respect of a financial year beginning on or after 1 July 1999 - if the member is an employee (within the meaning of the Fringe Benefits Tax Assessment Act 1986 ) who has a reportable fringe benefits total (as defined in that Act) for the year of income comprising the financial year - the reportable fringe benefits total for the year of income.