Superannuation Legislation Amendment Act 2010 (117 of 2010)

Schedule 4   Other amendments

Part 1   Notices of intent to deduct

Income Tax Assessment Act 1997

14   After section 295-195

Insert:

295-197 Exclusion of personal contributions - successor funds

Scope

(1) This section applies to the *superannuation provider (the successor provider ) of a *complying superannuation fund or *RSA if, apart from this section, a *roll-over superannuation benefit would be included in the assessable income of the fund or *RSA provider under item 2A of the table in subsection 295-190(1).

Variation notice received before return lodged

(2) The benefit is not so included, to the extent that the relevant contribution has been reduced by a notice under section 290-180, if the notice is received by the successor provider before the successor provider has lodged its *income tax return for the income year in which the benefit was transferred.

Variation notice received after return lodged

(3) The benefit is not so included in the assessable income for the income year in which the benefit was transferred, to the extent that the relevant contribution has been reduced by a notice under section 290-180, if:

(a) the notice is received by the successor provider after the successor provider has lodged its *income tax return for the income year; and

(b) the successor provider exercises the option mentioned in subsection (4).

(4) An amount referred to in subsection (3) may, at the option of the successor provider, be excluded from the assessable income of the fund or *RSA provider for the income year referred to in subsection (3) if excluding it would result in a greater reduction in tax for that year than the reduction that would occur for the income year in which the notice is received if a deduction were allowed under item 2B of the table in subsection 295-490(1).

Note: The exclusion is an alternative to the fund deducting the amount under item 2B of the table in subsection 295-490(1).