Income Tax Assessment Act 1936

SCHEDULE 2D - TAX EXEMPT ENTITIES THAT BECOME TAXABLE  

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Division 57 - Tax exempt entities that become taxable  

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Subdivision 57-F - Superannuation deductions  

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SECTION 57-50   CONTRIBUTIONS GENERALLY  

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57-50(1)    

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This section applies to a deduction allowable apart from this Subdivision to the transition taxpayer under section 290-60 of the Income Tax Assessment Act 1997 for a contribution made to a fund in relation to a person if the person was an employee of the transition taxpayer at any time before or after the transition time.
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57-50(2)   Deduction allowable only if sum of all deductions exceeds general superannuation threshold amount.  

The deduction is not allowable for a year of income if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the general superannuation threshold amount (see subsection (4)) for the year of income.

57-50(3)   Amount of deduction not allowable.  

If the sum is greater than the general superannuation threshold amount, so much of the deduction as is worked out using the following formula is not allowable:


  Amount of deduction × General superannuation threshold amount  
  Sum of all deductions of the transition taxpayer to which this section applies for the year of income  
       

57-50(4)   Meaning of general superannuation threshold amount .  

The general superannuation threshold amount for a year of income is:


(a) if the year of income is the transition year - the undischarged superannuation liability amount (see subsection (5)); or


(b) in any other case - the amount applicable under paragraph (a), reduced by the total amount of deductions to which this section applies that, because of subsection (2) or (3), have not (disregarding section 57-55 ) been allowable to the transition taxpayer for all previous years of income.

57-50(5)   Meaning of undischarged superannuation liability amount .  

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This is how to work out the transition taxpayer ' s undischarged superannuation liability amount :


Step 1.

For each person who was an employee of the transition taxpayer at any time before the transition time, take the sum of:

  • (a) if the whole or any part of the person ' s period of employment with the transition taxpayer took place before the beginning of the superannuation guarantee period (see subsection (6)) and there were one or more required award etc. contribution amounts (see subsection (7)) in respect of any of that whole or part - that amount or those amounts; and
  • (b) if, for the whole or any part or parts of the superannuation guarantee period, there were one or more required award etc. contribution amounts that were greater than the required superannuation guarantee contribution amount or amounts (see subsection (8)) - that greater amount or those greater amounts; and
  • (c) if, for the whole or any part or parts of the superannuation guarantee period, either there was no required award etc. contribution amount or there was such an amount but it was not greater than the required superannuation guarantee contribution amount - the required superannuation guarantee contribution amount for the whole or the part of the period, or the sum of the required superannuation guarantee contribution amounts for the parts of the period, as the case may be.


    • Step 2.

    Reduce the sum from Step 1 by the sum of amounts that the transition taxpayer actually contributed before the start of the transition year:

  • (a) in payment of required award etc. contribution amounts or required superannuation guarantee contribution amounts for the employee that are included in the sum in Step 1; or
  • (b) voluntarily to a superannuation fund for the purpose of providing superannuation benefits for the employee, or dependants of the employee;

    • in respect of any period of employment of the employee with the transition taxpayer before the transition time.


    Step 3.

    If the result after applying Step 2 for a particular employee is less than nil, it is nil instead.


    Step 4.

    Add up the results for all of the employees. This final sum is the transition taxpayer ' s undischarged superannuation liability amount .

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    57-50(6)   Meaning of superannuation guarantee period.  

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    The superannuation guarantee period is the period beginning on 1 July 1992 and ending at the transition time.

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    57-50(7)   Meaning of required award etc. contribution amount.  

    A required award etc. contribution amount is an amount required to be contributed to a superannuation fund by an employer for the benefit of an employee:


    (a) by an industrial award; or


    (b) by an occupational superannuation arrangement; or


    (c) by a law of the Commonwealth, a State or a Territory; or


    (d) otherwise.

    57-50(8)   Meaning of required superannuation guarantee contribution amount.  

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    A required superannuation guarantee contribution amount is an amount that an employer would need to contribute in respect of a period so as not to have a superannuation guarantee shortfall under the Superannuation Guarantee (Administration) Act 1992 in respect of that period.

    Note:

    The relevant periods for which shortfalls are or were calculated under that Act are quarters (from 1 July 1993 onwards) or half-years (from 1 July 1992 to 30 June 1993).

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