Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 292 - Excess non-concessional contributions tax  

SECTION 292-80   Application of excess non-concessional contributions tax from 10 May 2006 to 1 July 2007  

292-80(1)    
The object of this section is to apply (with modifications) provisions relating to excess non-concessional contributions tax in respect of certain contributions made during the period that:

(a) begins on 10 May 2006; and

(b) ends just before 1 July 2007.

292-80(2)    
The provisions are as follows:

(a) Subdivision 292-C of the Income Tax Assessment Act 1997 (excess non-concessional contributions tax);

(b) any other provision of that Act, or of any instrument made under that Act, to the extent that it relates to the operation of that Subdivision;

(c) any other provision of any other Act, or of any instrument made under any other Act, to the extent that it relates to the operation of that Subdivision.

Example:

Section 390-65 in Schedule 1 to the Taxation Administration Act 1953 .

292-80(3)    
Those provisions apply in relation to that period, and do so as if:

(a) that period were the 2006-2007 financial year; and

(b) the amount of a person's non-concessional contributions for that financial year:

(i) did not include the amount of the person's excess concessional contributions for that financial year; and

(ii) if subsection (6) applies - included the amount mentioned in that subsection; and

(iii) included each contribution covered under subsection (7) in respect of the person; and

(c) the person's non-concessional contributions cap for that financial year were $1,000,000; and

(d) subsections 292-85(3) and (4) of the Income Tax Assessment Act 1997 were omitted; and

(e) the person's CGT cap amount at the start of that financial year were $1,000,000; and

(ea) in a case where paragraph 292-95(1)(b) of that Act would have allowed the contribution mentioned in that paragraph to be made at a time within that period - that paragraph allowed the contribution to be made on or before 30 June 2007; and

(f) paragraph 292-95(1)(d) of that Act allowed the notification mentioned in that paragraph to be made on or before 31 July 2007; and

(fa) in a case where subsection 292-100(2) , (4) , (7) or (8) of that Act would have allowed the contribution mentioned in that subsection to be made at a time within that period - that subsection allowed the contribution to be made on or before 30 June 2007; and

(g) paragraph 292-100(9)(b) of that Act allowed the choice mentioned in that paragraph to be given on or before 31 July 2007; and

(h) contributions made during that period that are covered under section 292-100 of that Act reduce the person's CGT cap amount for the 2007-2008 financial year in accordance with subsection 292-105(2) of that Act (and despite subsection (1) of that section); and

(i) if the conditions in subsection (4) are satisfied - the person's excess non-concessional contributions for that financial year were reduced by the amount paid as mentioned in paragraph (4)(d); and

(j) the reference in subsection 307-220(1) of that Act to 30 June 2007 were a reference to 9 May 2006.

292-80(4)    
For the purposes of paragraph (3)(i), the conditions are:

(a) the person gives the Commissioner an application under subsection 292-80A(1) before 1 July 2007; and

(b) the Commissioner gives the person a transitional release authority under subsection 292-80A(2) in response to the application; and

(c) the person gives the transitional release authority to a superannuation provider that holds a superannuation interest for the person (other than a defined benefit interest) in accordance with section 292-80B within 21 days after the date of the release authority; and

(d) the superannuation provider pays the person the amount required under section 292-80C in relation to the transitional release authority.

292-80(5)    
Subsection (6) applies if:

(a) contributions are made in respect of a person (the first person ) in either or both of the following periods:

(i) 10 May 2006 to 30 June 2006;

(ii) 1 July 2006 to 30 June 2007; and

(b) those contributions are allowable as a deduction for another person under subsection 82AAC(1) of the Income Tax Assessment Act 1936 (apart from subsection 82AAC(2) of that Act).

292-80(6)    
The amount to be included in the first person's amount of non-concessional contributions under subparagraph (3)(b)(ii) is the sum of:

(a) the amount of those contributions made in the period mentioned in subparagraph (5)(a)(i), to the extent that they exceed the first person's deduction limit (within the meaning of subsection 82AAC(2A) of the Income Tax Assessment Act 1936 ) for the income year of the other person in which the contributions were made; and

(b) the amount of those contributions made in the period mentioned in subparagraph (5)(a)(ii), to the extent that they exceed the first person's deduction limit (within the meaning of subsection 82AAC(2A) of the Income Tax Assessment Act 1936 ) for the income year of the other person in which the contributions were made.

292-80(7)    

A contribution is covered under this subsection if:

(a) the contribution is made in respect of the person mentioned in subparagraph (3)(b)(iii) by another entity; and

(b) the person is not an employee of the other entity; and

(c) under Division 295 of the Income Tax Assessment Act 1997 (as that Division applies for the purposes of subsection (3)), the contribution is included in the assessable income of the superannuation provider in relation to the superannuation plan to which the contribution is made; and

(d) the contribution is made after 6 December 2006.

292-80(8)    

For the purposes of paragraph (7)(b), treat the person as an employee of the other entity if the person would be treated as an employee of the other entity under Division 290 of the Income Tax Assessment Act 1997 (as that Division applies for the purposes of subsection (3)).