Income Tax Assessment Act 1936

Subdiv AA (heading) substituted by No 15 of 2007, s 3 and Sch 1 item 59, applicable to the 2007-2008 income year and later years. The heading formerly read:

Subdivision AA - Superannuation, termination of employment and kindred payments

Subdiv AA inserted by No 47 of 1984.

S 27CAA repealed by No 15 of 2007, s 3 and Sch 1 item 3, applicable to the 2007-2008 income year and later years. S 27CAA formerly read:

SECTION 27CAA ASSESSABLE INCOME TO INCLUDE COMPONENT OF LUMP SUM PAYMENT FROM AN ELIGIBLE NON-RESIDENT NON-COMPLYING SUPERANNUATION FUND  
27CAA(1) [ Assessable income]  

If:

(a) a payment (the relevant payment ) of a lump sum (including a payment made because a superannuation pension or annuity is commuted) is made from a fund that is an eligible non-resident non-complying superannuation fund (the paying fund ) in relation to a taxpayer; and

(b) the relevant payment is not an exempt resident foreign termination payment or an exempt non-resident foreign termination payment; and

(c) the relevant payment is not made to another eligible non-resident non-complying superannuation fund; and

(d) had the paying fund been a superannuation fund, the relevant payment would, apart from paragraph (ma) of the definition of eligible termination payment , have been an eligible termination payment; and

(e) the amount worked out under the formula in subsection (2) is a positive amount;

then, subject to subsection (4), the taxpayer ' s assessable income for the year of income includes the amount worked out under that formula.

27CAA(2) [ Formula]  

For the purposes of subsection (1), the formula is:

where:

accumulated entitlement
means:

(a) the amount properly payable to the taxpayer out of the paying fund on the day immediately before the relevant day for the relevant payment; or

(b) if the relevant payment is not the first payment from the paying fund in relation to the taxpayer to be covered by this section - the amount properly payable to the taxpayer out of the paying fund immediately after the most recent such payment.

additional contributions
means so much of the payment day entitlement as represents:

(a) either:

(i) contributions paid by the taxpayer, or an employer of the taxpayer, on or after the relevant day for the relevant payment; or

(ii) if the relevant payment is not the first payment from the paying fund in relation to the taxpayer to be covered by this section - contributions paid by the taxpayer, or an employer of the taxpayer, after the most recent such payment; and

(b) either:

(i) amounts transferred into the paying fund from another eligible non-resident non-complying superannuation fund on or after the relevant day for the relevant payment; or

(ii) if the relevant payment is not the first payment from the paying fund in relation to the taxpayer to be covered by this section - amounts transferred into the paying fund from another eligible non-resident non-complying superannuation fund, after the most recent such payment.

payment day entitlement
means the amount that is properly payable to the taxpayer out of the paying fund on the day on which the relevant payment is made, before any deduction is made from that amount.

previously exempt amounts
means the sum of each of the amounts in respect of the relevant payment worked out under section 27CAB .

relevant day
, for a relevant payment, means the later of:

(a) the day on which the taxpayer became a member of the paying fund; and

(b) the first day during the period to which the relevant payment relates on which the taxpayer became a resident of Australia.

resident days
means the total number of days on which the taxpayer is a resident of Australia in the period from and including the relevant day for the relevant payment, up to and including the day on which the payment was made.

total days
means the total number of days in the period from and including the relevant day for the relevant payment, up to and including the day on which the payment was made.

27CAA(3) [ Election to make taxable contribution]  

If:

(a) the relevant payment is paid to a complying superannuation fund; and

(b) immediately after it is paid, the taxpayer no longer has an interest in the paying fund;

the taxpayer may elect that the whole or a part of the amount worked out under the formula in subsection (2) (but not exceeding the amount of the relevant payment) is to be treated as a taxable contribution by the complying superannuation fund.

27CAA(4) [ Effect of election]  

If the taxpayer makes an election under subsection (3), then the amount included in the taxpayer ' s assessable income under subsection (1) is reduced by the amount covered by the election.

27CAA(5) [ Form of election]  

An election under subsection (3):

(a) must be in writing; and

(b) must comply with any requirements specified in the regulations.

27CAA(6) [ Application of election]  

Subject to paragraph (1)(c), subsection 27A(3) applies for the purposes of this section in a corresponding way to the way in which it applies for the purposes of the definition of eligible termination payment in subsection 27A(1) .

S 27CAA and s 27CAB substituted for s 27CAA by No 83 of 2004.

S 27CAA inserted by No 181 of 1994.