Income Tax Assessment Act 1936
View history note
Hide history noteSubdiv 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.
(Repealed by No 15 of 2007)
S 27D repealed by No 15 of 2007, s 3 and Sch 1 item 3, applicable to the 2007-2008 income year and later years. S 27D formerly read:
the qualifying eligible termination payment shall, subject to this section, be taken to have been applied in accordance with the election. S 27D(1) amended by No 66 of 2003, No 208 of 1992 and No 105 of 1989. S 27D(1)(b) amended by No 147 of 1997 and No 62 of 1997. S 27D(4) inserted by No 208 of 1992.
SECTION 27D ROLL-OVER OF ETPs
27D(1)
For the purposes of this Subdivision, where:
(a)
in a year of income a qualifying eligible termination payment is made in relation to a taxpayer; and
(b)
the taxpayer makes an election in relation to the qualifying eligible termination payment specifying:
(i)
details of each amount (in this section referred to as a
qualifying roll-over payment
) paid, immediately after the qualifying eligible termination payment is made, as mentioned in paragraph 27A(12)(a), (b), (c) or (d); and
(ia)
details of each internal roll-over amount (in this section referred to as a
qualifying roll-over payment
) in relation to the taxpayer; and
(ii)
the amount or amounts (in this section referred to as the
applied amount
or the
applied amounts
) of the qualifying eligible termination payment that the taxpayer wishes to have regarded as having been expended in making a particular qualifying roll-over payment or particular qualifying roll-over payments; and
(iii)
if the qualifying eligible termination payment consists of 2 or more components (in this section referred to as the
eligible components
) of the following kinds:
(A)
the taxed element of the post-June 83 component;
(B)
the untaxed element of the post-June 83 component;
(BA)
the pre-July 83 component;
(C)
undeducted contributions in relation to the eligible termination payment;
(D)
a concessional component;
(DA)
a CGT exempt component;
the extent to which the taxpayer wishes the applied amount or applied amounts to be regarded as consisting of the eligible components;
(E)
the post-June 1994 invalidity component;
27D(2)
Where the amount, or the sum of the amounts, specified by a taxpayer in accordance with subparagraph (1)(b)(ii) in an election or elections made by the taxpayer under subsection (1) in relation to a year of income as an amount or amounts that the taxpayer wishes to have regarded as having been expended in making a particular qualifying roll-over payment exceeds the amount of that qualifying roll-over payment, no election made by the taxpayer under that subsection in relation to the year of income is of any effect.
27D(3)
An election under subsection (1) shall
-
(a)
be in a form approved by the Commissioner; and
(b)
be lodged with the Commissioner within such time, and in such manner, as is prescribed.
27D(4)
A taxpayer
'
s election under subsection (1) is taken to have specified the amount worked out using the steps set out in the following provisions of this section as the extent to which the taxpayer wishes a particular applied amount to be regarded as consisting of an eligible component covered by sub-subparagraph (1)(b)(iii)(A), (B) or (BA).
27D(5)
Step 1: the applied amount consists of the following notional components:
(a)
the notional concessional component, which is the amount (including a nil amount) specified in the taxpayer
'
s election under subsection (1) as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(D);
(aa)
the notional post-June 1994 invalidity component, which is the amount (including a nil amount) specified in the taxpayer
'
s election under subsection (1) as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(E);
(ab)
the notional CGT exempt component, which is the amount (including a nil amount) specified in the taxpayer
'
s election under subsection (1) as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(DA);
(b)
the notional undeducted contributions, which is the amount (including a nil amount) specified in the taxpayer
'
s election under subsection (1) as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(C);
(c)
the notional pre-July 83 component, which is the lesser of the following amounts:
(i)
the amount worked out using the formula:
Reduced applied amount
×
Pre-July 83
Total period
where:
(ii) the applied amount, reduced by the sum of the amounts listed in subsection (5A) and further reduced by the amount of the notional undeducted contributions;
(d) the notional post-June 83 component, which is the applied amount reduced by the other notional components.
S 27D(5) amended by No 147 of 1997 and inserted by No 208 of 1992.
27D(5A)
For the purposes of subparagraphs (5)(c)(i) and (ii), the amounts are as follows:
(a) the notional concessional component;
(b) the notional post-June 1994 invalidity component;
(c) the notional CGT exempt component.
S 27D(5A) inserted by No 147 of 1997.
27D(6)
Step 2: if the applied amount includes a notional pre-July 83 component, the taxpayer ' s election under subsection (1) is taken to have specified that notional component as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(BA).
S 27D(6) inserted by No 208 of 1992.
27D(7)
Step 3: if the applied amount includes a notional post-June 83 component, the taxpayer ' s election under subsection (1) has no effect unless the following rules are complied with:
(a) the sum of:
(i) the amount specified in the taxpayer ' s election under subsection (1) as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(A); and
must equal the notional post-June 83 component of the applied amount;
(ii) the amount specified in the taxpayer ' s election under subsection (1) as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(B);
(b) the amount specified in the taxpayer ' s election under subsection (1) as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(B) must not exceed the untaxed element of the post-June 83 component of the qualifying eligible termination payment, reduced by the sum of:
(i) if there are one or more other applied amounts which relate to one or more earlier qualifying roll-over payments (which other applied amounts are called " previous applied amounts " ) - the amount specified in the taxpayer ' s election under subsection (1) as the extent to which the taxpayer wishes the previous applied amounts to be regarded as consisting of that eligible component; and
(ii) the untaxed element of the retained amount of the post-June 83 component of the qualifying eligible termination payment;
(c) the amount specified in the taxpayer ' s election as the extent to which the taxpayer wishes the applied amount to be regarded as consisting of the eligible component covered by sub-subparagraph (1)(b)(iii)(A) must not exceed the sum of:
(i) the taxed element of the post-June 83 component of the qualifying eligible termination payment, reduced, in a case where there are one or more other applied amounts which relate to one or more earlier qualifying roll-over payments (which other applied amounts are called " previous applied amounts " ), by the sum of the amounts specified in the taxpayer ' s election under subsection (1) as the extent to which the taxpayer wishes the previous applied amounts to be regarded as consisting of that eligible component; and
(ii) if the sum of:
(A) the notional post-June 83 component of the applied amount; and
(B) if there are one or more other applied amounts - the notional post-June 83 components of those other applied amounts; andexceeds the post-June 83 component of the qualifying eligible termination payment - the amount calculated using the formula:
(C) the retained amount of the post-June 83 component of the qualifying eligible termination payment;
S 27D(7) inserted by No 208 of 1992.
27D(8)
The regulations may:
(a) provide that, in circumstances prescribed by regulations for the purposes of this paragraph, an election under subsection (1) is taken to have been made in relation to a qualifying eligible termination payment that is a contributions-splitting ETP; and
(b) prescribe matters that are taken to be specified in such an election for the purposes of subsection (1); and
(c) prescribe such other matters as are necessary or convenient for the purposes of applying this section to such an election.
S 27D(8) inserted by No 148 of 2005.
S 27D inserted by No 47 of 1984.
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