Taxation Laws Amendment (Superannuation) Act 1993 (7 of 1993)

PART 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 4   Amendments relating to ETP rules for death benefits

16  

Section 159SA of the Principal Act is repealed and the following section is substituted:

"159SA. Rebate to ensure upper limit on tax on eligible assessable income

(1) If the assessable income of the taxpayer of the current year of income includes any eligible assessable income, the taxpayer is entitled to a rebate of tax in the taxpayer's assessment of such amount (if any) as will ensure that the rate of tax on a rebatable amount specified in Table 1 will not be more than the corresponding rate of tax specified in that table.

TABLE 1-MAXIMUM RATES OF TAX ON ELIGIBLE ASSESSABLE INCOME

Item Class of eligible assessable income Corresponding Rates of

rebatable tax (%)

amount

1 current year's total of taxpayer's derived 20

s.27B(1)(a) amounts for non-age 55 ETPs low rate part 0

2 current year's total of taxpayer's

s.27B(1)(a) amounts for age 55 ETPs

3 current year's total of taxpayer's remaining part 15

s.27B(1)(a) amounts for age 55 ETPs

4 current year's total of taxpayer's derived 30

s.27B(1)(b) amounts for non-age 55 ETPs low rate part 15

5 current year's total of taxpayer's

s.27B(1)(b) amounts for age 55 ETPs

6 current year's total of taxpayer's remaining part 30

s.27B(1)(b) amounts for age 55 ETPs

7 current year's total of taxpayer's derived 15

s.27B(1A)(a) amounts

8 current year's total of taxpayer's derived 30

s.27B(1A)(b) amounts

9 current year's total of taxpayer's derived 30

eligible assessable income (excluding

amounts covered by Items 1 to 8)

"(2) The rebatable amount for a particular class of eligible assessable income in Table 1 is worked out as follows:

(a) the 'derived amount' is so much of the taxable part of the taxable income as is attributable to that class;

(b) subject to subsection (3), the 'low rate part' is so much of the derived amount for the class as does not exceed the residual amount under section 159SF for the current year;

(c) the 'remaining part' is so much of the derived amount for the class as is left over after deducting the low rate part.

"(3) The total of the low rate parts for the current year cannot be more than the residual amount under section 159SF for the current year.".