Income Tax Assessment Act 1997
View history note
Hide history noteThe *superannuation provider in relation to a *complying superannuation fund or a *complying approved deposit fund (the transferor ) may reduce the amount that would otherwise be included in the fund ' s assessable income for an income year under Subdivision 295-C by agreement with another entity (the transferee ) in which it holds investments.
What the transferee must be
295-260(2)
The transferee must be a *life insurance company or a *pooled superannuation trust.
Note:
Amounts transferred are included in the transferee ' s assessable income: see section 295-320 (for PSTs) and paragraph 320-15(1)(i) (for life insurance companies).
Agreement requirements
295-260(3)
The transferor may make one agreement only for an income year with a particular transferee.
295-260(4)
An agreement:
(a) must be in writing, and must be signed by or for the transferor and transferee; and
(b) must be made by the day the transferor lodges its *income tax return for its income year to which the agreement relates; and
(c) cannot be revoked.
Limits on transfer
295-260(5)
The total amount covered by the agreements cannot exceed the amount that would otherwise be included in the transferor ' s assessable income under Subdivision 295-C for that income year.
295-260(6)
The amount covered by an agreement with a particular transferee cannot exceed this amount:
|
Greatest equity value
Transferor ' s low tax component tax rate |
greatest equity value
is the greatest of these amounts during the transferor
'
s income year:
(a) if the transferee is a *pooled superannuation trust - the *market value of the transferor ' s investment in units in the trust;
(b) if not - the market value of the transferor ' s investment in:
(i) *life insurance policies issued by the transferee; or
(ii) a trust whose assets consist only of life insurance policies issued by the transferee.
transferor
'
s low tax component tax rate
is the rate of tax imposed on the *low tax component of the fund
'
s taxable income for the income year.
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