Superannuation Legislation Amendment (New Zealand Arrangement) Act 2012 (181 of 2012)

Schedule 1   Portability of superannuation between Australia and New Zealand

Income Tax Assessment Act 1997

2   At the end of Part 3-30

Add:

Division 312 - Trans-Tasman portability of retirement savings

Table of Subdivisions

Guide to Division 312

312-A Preliminary

312-B Amounts contributed to complying superannuation funds from KiwiSaver schemes

312-C Superannuation benefits paid to KiwiSaver scheme providers

Guide to Division 312

312-1 What this Division is about

This Division deals with amounts transferred between KiwiSaver schemes and complying superannuation funds.

Subdivision 312-A - Preliminary

Table of sections

312-5 Division implements Arrangement with New Zealand

312-5 Division implements Arrangement with New Zealand

This Division, together with regulations made under the Superannuation Industry (Supervision) Act 1993, implement the Arrangement between the Government of Australia and the Government of New Zealand on Trans-Tasman Retirement Savings Portability, signed at Brisbane on 16 July 2009.

Subdivision 312-B - Amounts contributed to complying superannuation funds from KiwiSaver schemes

Table of sections

312-10 Amounts contributed to complying superannuation funds from KiwiSaver schemes

312-10 Amounts contributed to complying superannuation funds from KiwiSaver schemes

Treat amount as a contribution

(1) An amount transferred from a *KiwiSaver scheme to a *complying superannuation fund in relation to you is treated as being a contribution you made to the complying superannuation fund for the purpose of providing *superannuation benefits for yourself.

Note 1: The contribution will not be included in the assessable income of the trustee of the complying superannuation fund: see Division 295.

Note 2: The contribution is not included in your concessional contributions: see section 292-25. Some of the contribution may be included in your non-concessional contributions: see subsection (3) of this section.

(2) Division 290 (Contributions to superannuation funds), section 295-200 (Transfers from foreign superannuation funds) and Subdivision 305-B (Superannuation benefits from foreign superannuation funds) do not apply to the contribution.

Australian-sourced amount and returning New Zealand-sourced amount not non-concessional

(3) For the purposes of Subdivision 292-C (Excess non-concessional contributions tax), disregard so much of the contribution as you or the *KiwiSaver scheme provider informs, in accordance with the regulations mentioned in section 312-5, the trustee of the *complying superannuation fund is:

(a) an *Australian-sourced amount; or

(b) a *returning New Zealand-sourced amount.

Note: The effect of subsection (3) is that the amounts mentioned in paragraphs (3)(a) and (b) are not included in your non-concessional contributions. The rest of the contribution is included in your non-concessional contributions: see subsection 292-90(2).

Assessable income and capital gains

(4) The contribution is not assessable income of yours and is not *exempt income of yours.

(5) Section 118-305 (capital gain or capital loss disregarded) applies in relation to the amount transferredas if the *KiwiSaver scheme were a*superannuation fund.

Tax free and taxable components of superannuation interest

(6) Section 307-220 (Contributions segment) only applies to so much (if any) of the contribution as you or the *KiwiSaver scheme provider inform, in accordance with the regulations mentioned in section 312-5, the trustee of the *complying superannuation fund is:

(a) a *New Zealand-sourced amount; or

(b) the*tax free component of an *Australian-sourced amount.

Note: So much of the value of an interest in the fund as consists of the amounts mentioned in paragraphs (6)(a) and (b) is included in the contributions segment and tax free component of the interest. So much of the value of that interest as consists of the rest of the contribution is not included in the contributions segment of the interest and is included in the taxable component of the interest. (The value of the interest may also consist of amounts other than the contribution.)

Subdivision 312-C - Superannuation benefits paid to KiwiSaver scheme providers

Table of sections

312-15 Superannuation benefits paid to KiwiSaver schemes

312-15 Superannuation benefits paid to KiwiSaver schemes

A *superannuation benefit paid to a *KiwiSaver scheme provider by the trustee of a *complying superannuation fund in respect of you is not assessable income of yours and is not *exempt income of yours.