SUPERANNUATION (DEPARTING AUSTRALIA SUPERANNUATION PAYMENTS TAX) ACT 2007

SECTION 1  

1   SHORT TITLE  
This Act may be cited as the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007.

SECTION 2  

2   COMMENCEMENT  
This Act commences on 1 July 2007.

SECTION 3  

3   DEFINITIONS  

In this Act:

departing Australia superannuation payment
has the same meaning as in the Income Tax Assessment Act 1997.

element taxed in the fund
has the same meaning as in the Income Tax Assessment Act 1997.

element untaxed in the fund
has the same meaning as in the Income Tax Assessment Act 1997.

excess untaxed roll-over amount
has the same meaning as in the Income Tax Assessment Act 1997.

roll-over superannuation benefit
has the same meaning as in the Income Tax Assessment Act 1997.

taxable component
has the same meaning as in the Income Tax Assessment Act 1997.

tax free component
has the same meaning as in the Income Tax Assessment Act 1997.

SECTION 4  

4   IMPOSITION OF TAX  
Tax payable on a departing Australia superannuation payment under subsection 301-175(2) of the Income Tax Assessment Act 1997 is imposed.

SECTION 5   AMOUNT OF TAX  

5(1)    
The amount of the tax is as follows:

(a) for the tax free component of the departing Australia superannuation payment - nil;

(b) for the element taxed in the fund of the taxable component of the departing Australia superannuation payment - 35%;

(c) for the element untaxed in the fund of the taxable component of the departing Australia superannuation payment - 45%.

5(2)    

However, if the departing Australia superannuation payment is a roll-over superannuation benefit paid under subsection 20H(2), (2AA) or (2A) of the Superannuation (Unclaimed Money and Lost Members) Act 1999, the amount of the tax for the element untaxed in the fund of the taxable component of the payment is:

(a) for the amount (if any) of the element that is not an excess untaxed roll-over amount - 45%; and

(b) for the amount (if any) of the element that is an excess untaxed roll-over amount - nil.

Note:

The tax for the excess untaxed roll-over amount is set at nil to avoid double taxation of that amount, which is also subject to tax under the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007.

5(3)    

Despite subsections (1) and (2), if the departing Australia superannuation payment:

(a) is paid to a person on or after 1 July 2017; and

(b) includes amounts attributable to superannuation contributions made while the person was a working holiday maker (within the meaning of the Income Tax Rates Act 1986);

those subsections apply as if the percentages in paragraphs (1)(b) and (c) and (2)(a) were 65%.

SECTION 6   TEMPORARY BUDGET REPAIR LEVY  

6(1)    
This section applies to departing Australia superannuation payments received in a temporary budget repair levy year.

6(2)    
Increase:

(a) the percentage mentioned in paragraph 5(1)(b) by 3 percentage points; and

(b) the percentage mentioned in paragraph 5(1)(c) by 2 percentage points; and

(c) the percentage mentioned in paragraph 5(2)(a) by 2 percentage points.

6(3)    
In this section:

temporary budget repair levy year
has the same meaning as in section 4-11 of the Income Tax (Transitional Provisions) Act 1997.