Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Act 2012 (23 of 2012)

Schedule 4   Low income superannuation contribution

Superannuation (Government Co-contribution for Low Income Earners) Act 2003

2   After Part 2

Insert:

Part 2A - Low income superannuation contribution

12B Reference to Government co-contribution includes reference to low income superannuation contribution

(1) A law of the Commonwealth applies in relation to a low income superannuation contribution in the same way as it applies in relation to a Government co-contribution.

(2) Subsection (1) does not apply to:

(a) the following provisions:

(i) Part 2 of this Act (other than section 12);

(ii) this Part;

(iii) section 54 of this Act; and

(b) any other law of the Commonwealth, to the extent that the other law relates to a provision mentioned in paragraph (a) of this subsection.

(3) Paragraph 14(1)(a) (Commissioner to have regard to income tax return) does not apply in relation to a determination under section 13 if:

(a) the determination relates to the payability of a low income superannuation contribution in respect of a person for an income year; and

(b) the person was not required to lodge an income tax return for the income year.

(4) Subsections 24(3) and (4) have an operation in respect of low income superannuation contributions that is separate to their operation in respect of Government co-contributions.

12C Person entitled to low income superannuation contribution

A low income superannuation contribution is payable under this Act in respect of a person for an income year of the person if:

(a) one or more superannuation contributions covered by section 12D are made during the income year by or for the person; and

(b) the person’s adjusted taxable income for the income year (worked out in accordance with Schedule 3 to the A New Tax System (Family Assistance) Act 1999 (disregarding clauses 3 and 3A of that Schedule)) does not exceed $37,000; and

(c) the requirement in paragraph 6(1)(b) is satisfied in respect of the person in relation to the income year; and

(d) the requirement in paragraph 6(1)(f) is satisfied in respect of the person in relation to the income year.

12D Contributions that attract matching low income superannuation contribution

A contribution made by or for a person is covered by this section if:

(a) the contribution was or is made on or after 1 July 2012; and

(b) the contribution is a concessional contribution (within the meaning of the Income Tax Assessment Act 1997) for the financial year that corresponds to the income year in which the contribution was or is made; and

(c) the contribution was or is made for the purpose of providing superannuation benefits for the person (regardless of whether the benefits are payable to the person’s dependants if the person dies before or after becoming entitled to receive the benefits).

12E Amount of low income superannuation contribution

(1) This section applies if a person is entitled to a low income superannuation contribution for an income year of the person under section 12C.

(2) The amount of the person’s low income superannuation contribution for the income year is:

(a) unless paragraph (b) or (c) applies - 15% of the total of the superannuation contributions covered by section 12D made by or for the person during the income year; or

(b) if the amount worked out under paragraph (a) exceeds $500 - $500; or

(c) if the amount worked out under paragraph (a) falls short of $20 - nil.