Superannuation Legislation Amendment (Simplification) Act 2007 (15 of 2007)

Schedule 1   Consequential amendments etc.

Part 2   Other consequential amendments etc.

Income Tax Assessment Act 1997

179   Sections 26-75, 26-80 and 26-85

Repeal the sections, substitute:

26-75 Excess contributions tax cannot be deducted

You cannot deduct under this Act an amount of *excess contributions tax that you pay.

26-80 Financing costs on loans to pay superannuation contribution

(1) You can only deduct under this Act a *financing cost connected with a contribution you make to a *superannuation plan if you can deduct the contribution under Subdivision 290-B.

(2) A financing cost connected with a contribution is expenditure incurred to the extent that it relates to obtaining finance to make the contribution, including:

(a) interest, and payments in the nature of interest; and

(b) expenses of borrowing.

26-85 Borrowing costs on loans to pay life insurance premiums

(1) You can only deduct under this Act interest on, or other expenses associated with, money you borrow to pay a premium for a *life insurance policy if:

(a) the *risk component of the premium received by the insurer is the entire amount of the premium; and

(b) each amount the insurer is liable to pay under the policy would be included in your assessable income if it were paid.

(2) The risk component of a premium for a *life insurance policy means the amount of the premium worked out on the basis specified in the regulations.