Taxation Laws Amendment (Superannuation) Act 1992 (208 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 8   Amendments abolishing a taxpayer's ability to choose which parts of an ETP (other than undeducted contributions and concessional components) are rolled-over

42   After section 27AB of the Principal Act the following section is inserted

ETP-retained amounts

(Section applies if ETP made)

"27AC.(1) This section applies if an ETP is made in relation to a taxpayer.

(Retained amounts)

"(2) For the purposes of this Subdivision:

(a) the retained amount of the ETP is so much of the ETP as was not rolled-over; and

(b) the retained amount of a concessional component of the ETP is so much of the concessional component as was not rolled-over; and

(c) the retained amount of the undeducted contributions in relation to the ETP is so much of the undeducted contributions as was not rolled-over; and

(d) the retained amount of the pre-July 83 component of the ETP is whichever is the lesser of the following amounts:

(i) the amount worked out using the formula:

((Retained amount of ETP – Retained amount of concessional component of ETP) – (Non-qualifying component of ETP – Excessive component of ETP)) * (Pre-July 83 / Total period)

where:

'Pre-July 83' is the number of whole days (if any) in the eligible service period that occurred before 1 July 1983;

'Total period' is the number of whole days in the eligible service period;

(ii) the amount represented by the following component in subparagraph (i), reduced by the retained amount of the undeducted contributions:

((Retained amount of ETP – Retained amount of concessional component of ETP) – (Non-qualifying component of ETP – Excessive component of ETP)) * ; and

(e) the retained amount of the post-June 83 component is the retained amount of the ETP, reduced by:

(i) the retained amount of the concessional component of the ETP; and

(ii) the retained amount of the undeducted contributions in relation to the ETP; and

(iii) the non-qualifying component of the ETP; and

(iv) the excessive component of the ETP; and

(v) the retained amount of the pre-July 83 component of the ETP.

(Commissioner may increase subparagraph (2)(d)(i) amount)

"(3) The Commissioner may increase the amount calculated under subparagraph (2)(d)(i) if the Commissioner considers it appropriate to do so having regard to the following matters:

(a) if the ETP relates to employment in which the taxpayer was engaged on 30 June 1983-the amount of an ETP that could, in the Commissioner's opinion, reasonably be expected to have been made in relation to the taxpayer in consequence of the termination of that employment if that employment had been terminated on that date;

(b) if the ETP relates to membership of the taxpayer of a superannuation fund on 30 June 1983-the amount of an ETP that could, in the Commissioner's opinion, reasonably be expected to have been made in relation to the taxpayer from the fund in consequence of the termination of the taxpayer's membership of the fund if that membership had been terminated on that date;

(c) any previous application in relation to the taxpayer of:

(i) this subsection; or

(ii) subsection 27AA(2) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 6) 1992; or

(iii) subsection 27B(2) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment (Superannuation) Act 1989;

(d) such other matters as the Commissioner considers relevant.

(Taxed element of retained amount of post-June 83 component)

"(4) For the purposes of this Subdivision, the taxed element of the retained amount of the post-June 83 component of the ETP is the retained amount of the post-June 83 component, reduced by the untaxed element of the retained amount of the post-June 83 component.

(Untaxed element of retained amount of post-June 83 component)

"(5) For the purposes of this Subdivision, the untaxed element of the retained amount of the post-June 83 component is the untaxed element of the post-June 83 component, reduced by so much of that element as has been rolled-over.

(Increased subparagraph (2)(d)(i) amount-further reduction of subsection (5) amount)

"(6) If, under subsection (3), the Commissioner increases the amount calculated under subparagraph (2)(d)(i) in relation to an ETP, the amount calculated under subsection (5) is to be further reduced:

(a) if the amount of the increase does not exceed the amount calculated under subsection (5)-by the amount of the increase; or

(b) if the amount of the increase exceeds the amount calculated under subsection (5)-to 0.

(Retained amounts where subsection 27AA(3) applies)

"(7) If subsection 27AA(3) applies in relation to an ETP, subsection (2) of this section has effect as if the amounts calculated in relation to the ETP under paragraphs (2)(d) and (e) were both 0.".