Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 291 - Excess concessional contributions  

Subdivision 291-B - Excess concessional contributions  

SECTION 291-25.01   CONCESSIONAL CONTRIBUTIONS FOR A FINANCIAL YEAR  

291-25.01(1)    
For the purposes of subsection 291-25(3) of the Act, this section specifies conditions for the allocation of an amount in a complying superannuation plan.

Note:

If the amount meets the conditions of this section it will be an amount covered under subsection 291-25(3) of the Act. Such amounts are counted in determining an individual ' s concessional contributions for a financial year.

Conditions - general

291-25.01(2)    
The conditions are that the amount is:

(a)    allocated under Division 7.2 of the SIS Regulations; and

(b)    an assessable contribution; and

(c)    not an amount mentioned in item 2 of the table in subsection 295-190(1) of the Act; and

(d)    not an amount mentioned in subsection 295-200(2) of the Act; and

(e)    

not an amount mentioned in subsection 99G(6) of the Superannuation Industry (Supervision) Act 1993 that is refunded in accordance with that subsection.

Conditions - amount allocated from a reserve

291-25.01(3)    

If the amount is allocated from a reserve and the amount does not meet the conditions in subsection (2) , the conditions are that:

(a)    neither subsection (4) nor (5) applies to the amount; and

(b)    the amount is not an amount mentioned in subsection 99G(6) of the Superannuation Industry (Supervision) Act 1993 that is refunded in accordance with that subsection.

291-25.01(4)    
This subsection applies if:

(a)    the amount is allocated, in a fair and reasonable manner:

(i) to an account for every member of the complying superannuation plan; or

(ii) if the member is a member of a class of members of the complying superannuation plan, and the amount in the reserve relates only to that class of members - to an account for every member of the class; and

(b)    the amount that is allocated for the financial year is less than 5% of the value of the member ' s interest in the complying superannuation plan at the time of allocation; and

(c)    the amount would not be assessable income of the complying superannuation plan if it were made as a contribution.

291-25.01(5)    
This subsection applies if the amount is allocated from a reserve used solely for the purpose of enabling the complying superannuation plan to discharge all or part of its liabilities (contingent or not), as soon as they become due, in respect of superannuation income stream benefits that are payable by the complying superannuation plan at that time, and any of the following applies:

(a)    the amount has been allocated to satisfy a pension liability of the plan paid during the financial year;

(b)    on the commutation of a superannuation income stream, except as a result of the death of the primary beneficiary, the amount is allocated to the recipient of the superannuation income stream, to commence another superannuation income stream, as soon as practicable;

(c)    on the commutation of a superannuation income stream as a result of the death of the primary beneficiary, the amount:

(i) is allocated to a death benefits dependant to discharge liabilities in respect of a superannuation income stream benefit that is payable by the plan as a result of the death; or

(ii) if subparagraph (i) does not apply - is paid as a superannuation lump sum and as a superannuation death benefit;

as soon as practicable.

291-25.01(6)    
If the amount is allocated from a reserve in lieu of a contribution to the complying superannuation plan (less any allowance for tax) which would have been assessable income of the complying superannuation plan, the amount that is allocated is to be multiplied by 1.176.