Commonwealth Numbered Acts Commonwealth Numbered ActsIncome Tax Assessment Act 1997
1 After section 306-10
Insert:
306-12 Involuntary roll-over superannuation benefit
A * roll-over superannuation benefit is an involuntary roll-over superannuation benefit if it is:
(a) a payment transferring a * superannuation interest of:
(i) a member of a * superannuation fund; or
(ii) a depositor with an * approved deposit fund; or
(iii) a holder of an * RSA;
to a * successor fund (other than a * self managed superannuation fund) without the consent of the member, depositor or holder; or
(b) a payment transferring an * accrued default amount of a member (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) of a * complying superannuation fund to another complying superannuation fund:
(i) as a result of an election under paragraph 29SAA(1)(b) of that Act; or
(ii) under section 388 of that Act;
if:
(iii) that member becomes a member (within the meaning of that Act) of the other fund immediately after the transfer; and
(iv) the transfer happens during the period beginning on 1 July 2015 and ending on 1 July 2017; or
(c) a payment of consideration for the issue to a person of a beneficial interest in an eligible rollover fund (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) in accordance with an application on behalf of that person under section 243 of that Act.
2 At the end of subsection 307-125(3)
Add:
; (d) despite paragraphs (a) and (b), if:
(i) the superannuation benefit is an * involuntary roll-over superannuation benefit paid from a superannuation interest; and
(ii) that interest was supporting a superannuation income stream immediately before that benefit was paid;
when that superannuation income stream commenced.
3 After subparagraph 307-220(2)(a)(i)
Insert:
(ia) disregard the * tax free component of an * involuntary roll-over superannuation benefit paid into the interest from another superannuation interest (the earlier interest ) (other than an earlier interest that was supporting a * superannuation income stream immediately before that benefit was paid); and
(ib) if subparagraph (ia) applies--include as a contribution an amount equal to the amount referred to in subsection (5); and
4 At the end of section 307-220
Add:
(5) For the purposes of subparagraph (2)(a)(ib), the amount is:
(a) if the * involuntary roll-over superannuation benefit is covered by paragraph 306-12(a) or (c)--the sum of the contributions segment, and crystallised segment, of the earlier interest immediately before the benefit was paid; or
(b) if the benefit is covered by paragraph 306-12(b)--the proportion of that sum that the benefit was to the * value of the earlier interest immediately before the benefit was paid.
5 Subsection 995-1(1)
Insert:
"involuntary roll-over superannuation benefit " has the meaning given by section 306-12.
Income Tax (Transitional Provisions) Act 1997
6 At the end of subsection 307-125(1)
Add:
Note: This section also applies to an income stream replacing an earlier one because of an involuntary roll-over (see section 307-127).
7 After section 307-125
Insert:
307-127 Extension--income stream replacing an earlier one because of an involuntary roll-over
(1) Section 307-125 also applies to a superannuation income stream (the later income stream ) if:
(a) the later income stream commenced using only the amount of an involuntary roll-over superannuation benefit:
(i) covered by paragraph 306-12(a) of the Income Tax Assessment Act 1997 ; and
(ii) paid from a superannuation interest (the earlier interest ); and
(b) immediately before that benefit was paid:
(i) the earlier interest was supporting another superannuation income stream (the earlier income stream ); and
(ii) section 307-125 of this Act applied to the earlier income stream because of subsection (1) of that section.
(2) Section 307-125 applies to the later income stream as if:
(a) references in that section to the later income stream (in relation to a time, or event happening, before the payment of that involuntary roll-over superannuation benefit) include references to the earlier income stream; and
(b) references in that section to the superannuation interest supporting the later income stream (in relation to a time, or event happening, before the payment of that benefit) include references to the earlier interest.
Taxation Administration Act 1953
8 Paragraph 390-10(2)(b) in Schedule 1
Repeal the paragraph, substitute:
(b) unless the benefit is an * involuntary roll-over superannuation benefit, give the individual in respect of whom the benefit is paid a statement in relation to the benefit within 30 days after the day on which the benefit is paid.
9 Application of amendments
The amendments made by this Part apply in relation to involuntary roll-over superannuation benefits paid on or after 1 July 2015.
Income Tax Assessment Act 1997
10 Paragraph 307-125(3)(c)
Omit " * superannuation income stream", substitute "superannuation income stream".
11 Section 307-210
Before "The", insert "(1)".
12 Section 307-210 (note)
Repeal the note.
13 At the end of section 307-210
Add:
Tax free component reduces if a benefit is paid
(2) If a * superannuation benefit is paid from the * superannuation interest:
(a) the * crystallised segment of the interest is reduced (but not below zero) by an amount equal to the * tax free component of the benefit; and
(b) if any of that amount remains, the * contributions segment of the interest is reduced (but not below zero) by that remaining amount.
Note: This has the effect of reducing the interest's tax free component by the amount of the benefit's tax free component.
14 Subsection 307-220(1)
Repeal the subsection, substitute:
(1) The contributions segment of a * superannuation interest is the total amount of the contributions to the interest:
(a) that were made after 30 June 2007; and
(b) to the extent that they have not been and will not be included in the assessable income of the * superannuation provider in relation to the * superannuation plan in which the interest is held.
This section has effect subject to subsection 307-210(2).
Note: This segment may be reduced if a superannuation benefit is paid from the superannuation interest: see subsection 307-210(2).
15 Subsection 307-225(2)
Omit "so much of the * value of the interest as consists of the total of", substitute "the total amount of".
16 At the end of subsection 307-225(2)
Add:
This section has effect subject to subsection 307-210(2).
Note: This segment may be reduced if a superannuation benefit is paid from the superannuation interest: see subsection 307-210(2).
17 Subsection 995-1(1) (definition of successor fund )
Repeal the definition, substitute:
"successor fund " , in relation to a transfer of a * superannuation interest of:
(a) a member of a * superannuation fund; or
(b) a depositor with an * approved deposit fund; or
(c) a holder of an * RSA;
means another superannuation fund, approved deposit fund or RSA if the following conditions are met:
(d) that other fund or RSA confers on that member, depositor or holder equivalent rights to the rights he or she had under the first-mentioned fund or RSA in respect of the interest;
(e) the conferral of these equivalent rights was agreed, before the transfer, between:
(i) the * superannuation provider of that other fund or RSA; and
(ii) the superannuation provider of the first-mentioned fund or RSA.