Income Tax Assessment Act 1936

Part IX repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-2008 income year and later years.

Former Part IX inserted by No 97 of 1989 and amended by No 105 of 1989.

Div 5 repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-08 income year and later years.

S 290A repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-08 income year and later years. S 290A formerly read:

SECTION 290A FIXED INTEREST COMPLYING ADFs - EXEMPTION OF INCOME ATTRIBUTABLE TO CERTAIN 25 MAY 1988 DEPOSITS  
290A(1) [Exemption]  

For each amount that, apart from this section, would be normal assessable income of a continuously complying fixed interest ADF of a year of income, the proportion (if any) calculated under subsection (2) is exempt from tax.

290A(2) [Calculation of proportion]  

The proportion is calculated using the formula:

Aggregate of current 25 May balances Aggregate current balance

where:

Aggregate of current 25 May balances is the aggregate of the current 25 May balances of eligible depositors, as at the reckoning time in relation to the year of income;

Aggregate current balance is the total amount deposited with the fund (together with accumulated earnings), as at the reckoning time in relation to the year of income.

290A(3) [Election re " reckoning time " ]  

An election for the purposes of the definition of " reckoning time " in subsection (4) must be made on or before the date of lodgment of the return of income of the ADF for the year of income to which the election relates, or before such later date as the Commissioner allows.

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History

S 290A(3) amended by No 101 of 1992.

290A(4) [Definitions]  

In this section, unless the contrary intention appears:

"continuously complying fixed interest ADF"
, in relation to a year of income (in this definition called the " current year of income " ), means a fund that is a fixed interest complying ADF in relation to each of the following years of income:

(a) the current year of income;

(b) the year of income in which 1 July 1988 occurred;

(c) each year of income later than the year of income mentioned in paragraph (b) and earlier than the current year of income;

"CS policy"
(Repealed by No 101 of 2004)

"current 25 May balance"
, in relation to an eligible depositor as at the reckoning time, is the balance as at that time determined by varying the original 25 May balance, in accordance with the following rules, during the period from 26 May 1988 to the reckoning time:

(a) the balance from time to time is not to exceed the original 25 May balance and is not to be less than nil;

(b) subject to paragraph (a), an amount deposited with the ADF by the depositor before 1 September 1989 is to be added to the balance;

(c) subject to paragraph (a), an amount repaid to the depositor from the ADF is to be deducted from the balance;

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Definition of " current 25 May balance " amended by No 20 of 1990.

"eligible depositor"
, in relation to an ADF, means:

(a) a depositor whose 55th birthday occurred on or before 25 May 1988; or

(b) a depositor whose 50th birthday occurred on or before 25 May 1988 and who, on or before that date, made a deposit with the ADF that consisted wholly or partly of the roll-over (within the meaning of Subdivision AA of Division 2 of Part III ) of an eligible termination payment, being an eligible termination payment that included a concessional component (within the meaning of that Subdivision);

"fixed interest complying ADF"
, in relation to a year of income, means a complying ADF where both of the following conditions are satisfied:

(a) not less than 90% of the amount that, apart from this section, would be the normal assessable income of the ADF of the year of income consists of any one or more of the following:

(i) interest or a payment in the nature of interest;

(ia) any profit arising on the disposal, redemption, cancellation or maturity of a security (within the meaning of Division 10 );

(ii) an amount included in assessable income under Division 16E of Part III ;

(b) at no time during the year of income did the assets of the fund consist of or include any of the following:

(i) units in a PST;

(ii) virtual PST life insurance policies (as defined in the Income Tax Assessment Act 1997 ) issued by a life assurance company.

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History

Definition of " fixed interest complying ADF " amended by No 101 of 2004 and No 7 of 1993.

"original 25 May balance"
, in relation to an eligible depositor, means the amount of the deposits (together with accumulated earnings) standing to the credit of the depositor as at the end of 25 May 1988;

"reckoning time"
, in relation to an ADF in relation to a year of income, means the beginning of the year of income, or such other time during the year of income as the ADF elects in accordance with subsection (3).

290A(5) [Benefit to be passed on]  

This section does not apply to an ADF in relation to a year of income unless the Commissioner is satisfied that the whole of the benefit that would accrue to the ADF from the application of this section in relation to the year of income has been, or will be, passed on to eligible depositors.

S 290A inserted by No 105 of 1989.