Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 3   AMENDMENTS RELATING TO SUPERANNUATION

Part 2   INCOME TAX ASSESSMENT ACT 1936

Division 3   Non-complying superannuation funds that were previously complying superannuation funds

22   After section 288

Insert in Division 4 of Part IX:

Liability to taxation of non-complying fund that was previously a complying fund

"288A. (1) If a superannuation fund that is a non-complying superannuation fund in relation to the year of income (the 'current year of income') was a complying superannuation fund in relation to the immediately preceding year of income, the fund's assessable income of the current year of income includes the fund's net previous income in respect of previous years of income.

"(2) The fund's net previous income in respect of previous years of income is taken to be the amount worked out using the formula:

Asset values less Undeducted contributions

where:

'Asset values' means the sum of the market values of the fund's assets immediately before the start of the current year of income;

'Undeducted contributions' means the amount in the fund immediately before the start of the current year of income that represented the total undeducted contributions (as defined in section 27A) made by current members of the fund.".