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This is a Bill, not an Act. For current law, see the Acts databases.
1998-1999-2000-2001
The
Parliament of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Superannuation
Contributions Taxes and Termination Payments Tax Legislation Amendment Bill
2001
No. ,
2001
(Treasury)
A Bill
for an Act to amend the law relating to superannuation contributions taxes and
termination payments tax, and for related purposes
ISBN: 0642 459371
Contents
A Bill for an Act to amend the law relating to
superannuation contributions taxes and termination payments tax, and for related
purposes
The Parliament of Australia enacts:
This Act may be cited as the Superannuation Contributions Taxes and
Termination Payments Tax Legislation Amendment Act 2001
(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Schedule 1 is taken to have commenced on 5 June 1997,
immediately after the commencement of the Superannuation Contributions Tax
(Assessment and Collection) Act 1997.
(3) Schedule 2 is taken to have commenced on 7 December 1997,
immediately after the commencement of the Superannuation Contributions Tax
(Members of Constitutionally Protected Superannuation Funds) Assessment and
Collection Act 1997.
(4) Schedule 3 is taken to have commenced on 5 June 1997,
immediately after the commencement of the Termination Payments Tax
(Assessment and Collection) Act 1997.
Subject to section 2, each Act that is specified in a Schedule to
this Act is amended or repealed as set out in the applicable items in the
Schedule concerned, and any other item in a Schedule to this Act has effect
according to its terms.
1 After section 7
Insert:
(1) This section applies to a member for a financial year if:
(a) no payments that were eligible termination payments for the purposes
of Subdivision AA of Division 2 of Part III of the Income Tax
Assessment Act because of paragraph (a) of the definition of eligible
termination payment in subsection 27A(1) of that Act were made to or for
the member in the financial year; or
(b) one or more such payments were so made but the total of the reduced
amounts of the payments (other than payments that were rolled over before
1 July 1997) was equal to or greater than the amount specified in
subsection 5(2) of the Superannuation Contributions Tax Imposition Act
1997 as altered under section 7 of that Act for the financial
year.
(2) The reduced amount of an eligible termination payment is
the amount (if any) remaining after deducting from the amount of the payment the
amount of any post-June 1994 invalidity component or CGT exempt component of the
payment or any part of the payment that was made from an employee share
acquisition scheme.
(3) The adjusted taxable income of the member for the financial year is
the sum of:
(a) the member’s taxable income of the year of income comprising the
financial year less any amounts included in the member’s assessable income
of that year of income:
(i) that were eligible termination payments for the purposes of
Subdivision AA of Division 2 of Part III of the Income Tax Assessment
Act (other than amounts that were such payments because of paragraph (a) of
the definition of eligible termination payment in subsection
27A(1) of that Act); or
(ii) that were so included under section 26AC or under subsection
26AD(2), (3) or (4) of the Income Tax Assessment Act in respect of a bona fide
redundancy amount, an early retirement scheme amount or an invalidity amount as
defined in section 159S of that Act; and
(b) in respect of the financial year beginning on 1 July 1996 or the
following financial year—the amount (if any) by which the amount worked
out under paragraph (a) would be increased if it were instead worked out
ignoring subsection 271-105(1) of Schedule 2F to the Income Tax Assessment
Act; and
(c) in respect of the financial year beginning on 1 July 1998 or a
later financial year—the amount (if any) by which the amount worked out
under paragraph (a) would be increased if it were instead worked out
ignoring paragraphs 102UK(2)(b) and 102UM(2)(b) of, and subsection 271-105(1) of
Schedule 2F to, the Income Tax Assessment Act; and
(d) the member’s surchargeable contributions for the financial year;
and
(e) in respect of a financial year beginning on or after 1 July
1999—if the member is an employee (within the meaning of the Fringe
Benefits Tax Assessment Act 1986) who has a reportable fringe benefits total
(as defined in that Act) for the year of income comprising the financial
year—the reportable fringe benefits total for the year of
income.
(1) This section applies to a member for a financial year if:
(a) one or more payments that were eligible termination payments for the
purposes of Subdivision AA of Division 2 of Part III of the Income Tax
Assessment Act because of paragraph (a) of the definition of eligible
termination payment in subsection 27A(1) of that Act were made to or for
the member in the financial year; and
(b) the total of the reduced amounts of the payments (other than payments
that were rolled over before 1 July 1997) was less than the amount
specified in subsection 5(2) of the Superannuation Contributions Tax
Imposition Act 1997 as altered under section 7 of that Act for the
financial year.
(2) The reduced amount of an eligible termination payment is
the amount (if any) remaining after deducting from the amount of the payment the
amount of any post-June 1994 invalidity component or CGT exempt component of the
payment or any part of the payment that was made from an employee share
acquisition scheme.
(3) The adjusted taxable income of the member for the financial year is
the sum of:
(a) the member’s taxable income of the year of income comprising the
financial year less any of the following amounts included in the member’s
assessable income of that year of income:
(i) amounts that were eligible termination payments for the purposes of
Subdivision AA of Division 2 of Part III of the Income Tax Assessment
Act;
(ii) amounts that were so included under section 26AC or under
subsection 26AD(2), (3) or (4) of the Income Tax Assessment Act in respect of a
bona fide redundancy amount, an early retirement scheme amount or an invalidity
amount as defined in section 159S of that Act; and
(b) in respect of the financial year beginning on 1 July 1996 or the
following financial year—the amount (if any) by which the amount worked
out under paragraph (a) would be increased if it were instead worked out
ignoring subsection 271-105(1) of Schedule 2F to the Income Tax Assessment
Act; and
(c) in respect of the financial year beginning on 1 July 1998 or a
later financial year—the amount (if any) by which the amount worked out
under paragraph (a) would be increased if it were instead worked out
ignoring paragraphs 102UK(2)(b) and 102UM(2)(b) of, and subsection 271-105(1) of
Schedule 2F to, the Income Tax Assessment Act; and
(d) in respect of each eligible termination payment referred to in
subsection (1)—whichever of the following amounts is
appropriate:
(i) if the post-20 August 1996 period is less than 365 days—the
amount (excluding any cents, cent or fraction of a cent included in that amount)
worked out using the formula:
(ii) otherwise—the amount (excluding any cents, cent or fraction of
a cent included in that amount) worked out using the formula:
where:
ETP means:
(a) if no part of the payment was rolled-over—so much of the amount
of the payment as is included in the member’s taxable income of the year
of income comprising the financial year; or
(b) if any of the payment was rolled-over—the sum of:
(i) so much of the part (if any) of the payment that was not rolled-over
as is included in the member’s taxable income of the year of income
comprising the financial year; and
(ii) so much of the part of the payment that was rolled-over after
30 June 1997 as would have been included in that taxable income if that
part of the payment had not been rolled-over.
post-20 August 1996 period means the number of days in
the period of the member’s employment for which the eligible termination
payment was made that occurred after 20 August 1996.
total period means the number of days in the period of the
member’s employment for which the eligible termination payment was made;
and
(e) the member’s surchargeable contributions for the financial year
less any amounts included in those surchargeable contributions because of
subparagraph 8(2)(c)(iii); and
(f) in respect of a financial year beginning on or after 1 July
1999—if the member is an employee (within the meaning of the Fringe
Benefits Tax Assessment Act 1986) who has a reportable fringe benefits total
(as defined in that Act) for the year of income comprising the financial
year—the reportable fringe benefits total for the year of
income.
2 Subparagraph 8(2)(c)(iii)
Repeal the subparagraph, substitute:
(iii) subject to subsection (2A), constitute amounts accrued after
20 August 1996 that are eligible termination payments under
paragraph (a) of the definition of eligible termination
payment in subsection 27A(1) of that Act and are rolled-over on or after
1 July 1997; and
3 Subsection 8(2A)
Omit all the words before the formula, substitute:
If an eligible termination payment within the meaning of
subparagraph (2)(c)(iii) has been made or is made to or for a taxpayer
after 20 August 1996, surcharge is payable only on the part of the reduced
amount of the eligible termination payment that is worked out using the
formula:
4 Subsection 8(2A)
Insert:
reduced amount of an eligible termination payment is the
amount remaining after deducting from the amount of the payment any post-June
1994 invalidity component or CGT exempt component of the payment or any part of
the payment that was made from an employee share acquisition scheme.
5 Subparagraph 13(7)(a)(i)
Omit “and the total of so much of those amounts as are specified
roll-over amounts referred to in subparagraph 8(2)(c)(iii)”.
6 Section 43 (definition of adjusted
taxable income)
Repeal the definition, substitute:
adjusted taxable income has the meaning given by
section 7A or 7B, whichever is applicable.
7 Section 43
Insert:
rolled-over has the meaning given by paragraph 27A(13)(a) of
the Income Tax Assessment Act.
8 Section 43 (definition of specified
roll-over amount)
Repeal the definition.
9 Amendment of assessments
Nothing in the Superannuation Contributions Tax (Assessment and
Collection) Act 1997 prevents the amendment of an assessment of surcharge on
a member’s surchargeable contributions for a financial year for the
purpose of giving effect to an amendment of that Act made by this Schedule if
the Commissioner has sufficient information to satisfy himself or herself that
the amendment is required or permitted for that purpose and the amendment does
not increase the amount of surcharge payable in respect of those
contributions.
1 Subparagraph 9(2)(c)(iii)
Repeal the subparagraph, substitute:
(iii) subject to subsection (3), constitute amounts accrued after
20 August 1996 that are eligible termination payments under
paragraph (a) of the definition of eligible termination
payment in subsection 27A(1) of that Act and are rolled-over on or after
1 July 1997; and
2 Subsection 9(3)
Omit all the words before the formula, substitute:
If an eligible termination payment within the meaning of
subparagraph (2)(c)(iii) has been made or is made to or for a taxpayer
after 20 August 1996, surcharge is payable only on the part of the reduced
amount of the eligible termination payment that is worked out using the
formula:
3 Subsection 9(3)
Insert:
reduced amount of an eligible termination payment is the
amount remaining after deducting from the amount of the payment any post-June
1994 invalidity component or CGT exempt component of the payment or any part of
the payment that was made from an employee share acquisition scheme.
4 Subparagraph 12(5)(a)(i)
Omit “and the total of so much of those amounts as are specified
roll-over amounts referred to in subparagraph 9(2)(c)(iii)”.
5 Section 38 (definition of adjusted
taxable income)
Repeal the definition, substitute:
adjusted taxable income has the same meaning as in the
Superannuation Contributions Tax (Assessment and Collection) Act
1997.
6 Section 38
Insert:
rolled-over has the meaning given by paragraph 27A(13)(a) of
the Income Tax Assessment Act.
7 Section 38 (definition of specified
roll-over amount)
Repeal the definition.
8 Amendment of assessments
Nothing in the Superannuation Contributions Tax (Members of
Constitutionally Protected Superannuation Funds) Assessment and Collection Act
1997 prevents the amendment of an assessment of surcharge on a
member’s surchargeable contributions for a financial year for the purpose
of giving effect to an amendment of that Act made by this Schedule or
Schedule 1 if the Commissioner has sufficient information to satisfy
himself or herself that the amendment is required or permitted for that purpose
and the amendment does not increase the amount of surcharge payable in respect
of those contributions.
1 Subsection 8(1)
Omit “Termination payments surcharge”, substitute
“Subject to subsection (1A), termination payments
surcharge”.
2 After subsection 8(1)
Insert:
No surcharge is payable on excessive part of termination
payments
(1A) In the case of a termination payment made after 7.30 pm by legal time
in the Australian Capital Territory on 22 May 2001, surcharge is not
payable on any part of the payment that the Commissioner has determined under
section 140R of the Income Tax Assessment Act to be in excess of the RBLs
of the taxpayer.
3 Section 9
Repeal the section, substitute:
(1) This section applies if a termination payment has been or is made to
or for a taxpayer after 20 August 1996.
(2) In the case of a termination payment made at or before 7.30 pm by
legal time in the Australian Capital Territory on 22 May 2001, surcharge is
payable only on the part of the termination payment that is worked out using the
formula:
(3) In the case of a termination payment made after 7.30 pm by legal time
in the Australian Capital Territory on 22 May 2001, surcharge is payable
only on the part of the termination payment that is worked out using the
formula:
(4) For the purposes of this section:
excessive component means the part (if any) of the
termination payment that the Commissioner has determined under section 140R
of the Income Tax Assessment Act to be in excess of the RBLs of the
taxpayer.
post-20 August 1996 period means the number of days in
the period of the taxpayer’s employment for which the termination payment
was made that occurred after 20 August 1996.
total period means the number of days in the period of the
taxpayer’s employment for which the termination payment was
made.
4 Application
The amendments made by this Schedule apply only to payments made after 7.30
pm by legal time in the Australian Capital Territory on 22 May
2001.
5 Amendment of assessments
Nothing in the Termination Payments Tax (Assessment and Collection) Act
1997 prevents the amendment of an assessment of surcharge on termination
payments made to or for a taxpayer for a financial year for the purpose of
giving effect to an amendment of that Act made by this Schedule or
Schedule 1 if the Commissioner has sufficient information to satisfy
himself or herself that the amendment is required or permitted for that purpose
and the amendment does not increase the amount of surcharge payable in respect
of those termination payments.