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This is a Bill, not an Act. For current law, see the Acts databases.
2010-2011-2012-2013
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Superannuation Laws Amendment
(MySuper Capital Gains Tax Relief and
Other Measures) Bill 2013
No. , 2013
(Treasury)
A Bill for an Act to amend the law relating to
taxation and superannuation, and for related
purposes
i Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures)
Bill 2013 No. , 2013
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedule(s) ........................................................................................ 3
Schedule 1--Loss relief and asset roll-over for transfer of
amounts to a MySuper product
4
Part 1--Main amendment
4
Income Tax Assessment Act 1997
4
Part 2--Other amendments
14
Income Tax Assessment Act 1997
14
Part 3--Repeals and related amendments
18
Income Tax Assessment Act 1997
18
Schedule 2--Sustaining the superannuation contribution
concession: consequential amendments for
Defence Force superannuation
21
Defence Force Retirement and Death Benefits Act 1973
21
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 1
A Bill for an Act to amend the law relating to
1
taxation and superannuation, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Superannuation Laws Amendment
6
(MySuper Capital Gains Tax Relief and Other Measures) Act 2013.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
13
2 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1,
Part 1
The day this Act receives the Royal Assent.
3. Schedule 1,
items 3 to 8
The day this Act receives the Royal Assent.
4. Schedule 1,
item 9
The later of:
(a) the start of the day this Act receives the
Royal Assent; and
(b) immediately after the commencement of
item 1 of Schedule 3 to the Tax and
Superannuation Laws Amendment
(Increased Concessional Contributions
Cap and Other Measures) Act 2013.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
5. Schedule 1,
items 10 to 13
The day this Act receives the Royal Assent.
6. Schedule 1,
items 14 to 19
2 July 2019.
2 July 2019
7. Schedule 1,
item 20
The later of:
(a) the start of 2 July 2019; and
(b) immediately after the commencement of
item 1 of Schedule 3 to the Tax and
Superannuation Laws Amendment
(Increased Concessional Contributions
Cap and Other Measures) Act 2013.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
8. Schedule 1,
items 21 to 25
2 July 2019.
2 July 2019
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 3
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
9. Schedule 2
The later of:
(a) the start of the day this Act receives the
Royal Assent; and
(b) immediately after the commencement of
the Tax and Superannuation Laws
Amendment (Increased Concessional
Contributions Cap and Other Measures)
Act 2013.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 1 Main amendment
4 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
Schedule 1
--
Loss relief and asset roll-over for
1
transfer of amounts to a MySuper
2
product
3
Part 1
--
Main amendment
4
Income Tax Assessment Act 1997
5
1 After Division 310
6
Insert:
7
Division 311--Loss relief and asset roll-over for transfer of
8
amounts to a MySuper product
9
Table of Subdivisions
10
Guide to Division 311
11
311-A Object of this Division
12
311-B Choosing loss transfers and asset roll-overs
13
311-C Consequences of choosing to transfer losses
14
311-D Consequences of choosing asset roll-over
15
311-E
Choices
16
Guide to Division 311
17
311-1 What this Division is about
18
This Division provides tax relief for certain entities if a member's
19
accrued default amount is required to be transferred to a MySuper
20
product in another complying superannuation fund.
21
A trustee of a complying superannuation fund, a life insurance
22
company or a trustee of a pooled superannuation trust that satisfies
23
certain conditions can:
24
(a)
choose to transfer a loss; or
25
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Main amendment Part 1
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 5
(b)
choose an asset roll-over; or
1
(c)
choose to transfer a loss and choose an asset
2
roll-over.
3
Note 1:
This Division and associated provisions will be repealed on 2 July
4
2019: see Part 3 of Schedule 1 to the Superannuation Laws
5
Amendment (MySuper Capital Gains Tax Relief and Other Measures)
6
Act 2013.
7
Note 2:
Part 2C of the Superannuation Industry (Supervision) Act 1993
8
provides rules about MySuper products.
9
Operative provisions
10
Subdivision 311-A--Object of this Division
11
Table of sections
12
311-5
Object
13
311-5 Object
14
The object of this Division is to ensure that default members of
15
*
complying superannuation funds are not adversely affected if their
16
*
accrued default amounts are compulsorily transferred to MySuper
17
products in other complying superannuation funds.
18
Subdivision 311-B--Choosing loss transfers and asset roll-overs
19
Table of sections
20
311-10
Certain entities can choose transfer of losses, asset roll-overs, or both
21
311-10 Certain entities can choose transfer of losses, asset roll-overs,
22
or both
23
(1) If an
*
arrangement is made for which the conditions in this section
24
are satisfied, a trustee of a
*
complying superannuation fund, a
*
life
25
insurance company or a trustee of a
*
pooled superannuation trust
26
(the transferring entity) can:
27
(a) choose to transfer a loss; or
28
(b) choose an asset roll-over; or
29
(c) choose to transfer a loss and choose an asset roll-over.
30
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 1 Main amendment
6 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
Entity must hold certain assets
1
(2) The first condition is satisfied if, just before the
*
arrangement was
2
made:
3
(a) for an entity that is a trustee of a
*
complying superannuation
4
fund (the original fund)--its assets included assets other
5
than:
6
(i) a
*
complying superannuation/FHSA life insurance
7
policy; or
8
(ii) units in a
*
pooled superannuation trust; or
9
(b) for an entity that is a
*
life insurance company--a complying
10
superannuation/FHSA life insurance policy issued by the
11
entity was held by a complying superannuation fund (the
12
original fund); or
13
(c) for an entity that is a trustee of a
*
pooled superannuation
14
trust--units in the entity were held by a complying
15
superannuation fund (the original fund).
16
Transfer of accrued default amount and membership of continuing
17
fund
18
(3) The second condition is satisfied if:
19
(a) under the
*
arrangement, the original fund transfers, to a
20
*
complying superannuation fund (the continuing fund), an
21
*
accrued default amount of a person who is a member (within
22
the meaning of the Superannuation Industry (Supervision)
23
Act 1993); and
24
(b) the amount is transferred to the continuing fund:
25
(i) as a result of an election made under
26
paragraph 29SAA(1)(b) of that Act; or
27
(ii) under section 388 of that Act; and
28
(c) the member is a member of the continuing fund immediately
29
after the time that the transfer occurs (the completion time).
30
Choice relates to period from 1 July 2013 to 1 July 2017
31
(4) The third condition is satisfied if the completion time occurs during
32
the period beginning on 1 July 2013 and ending on 1 July 2017.
33
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Main amendment Part 1
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 7
Subdivision 311-C--Consequences of choosing to transfer
1
losses
2
Table of sections
3
311-15
Who losses can be transferred to
4
311-20
Losses that can be transferred
5
311-25
Effect of transferring a net capital loss
6
311-30
Effect of transferring a tax loss
7
311-35
Realisation of certain assets after completion time
8
311-15 Who losses can be transferred to
9
The transferring entity can choose to transfer any or all of the
10
transferring entity's losses set out in section 311-20, in whole or in
11
part, to one or more of the following entities (a receiving entity):
12
(a) the continuing fund for the choice;
13
(b) a
*
pooled superannuation trust in which units are held by the
14
continuing fund for the choice just after the completion time;
15
(c) a
*
life insurance company with which a
*
complying
16
superannuation/FHSA life insurance policy is held by the
17
continuing fund for the choice just after the completion time.
18
311-20 Losses that can be transferred
19
(1) The transferring entity's losses that can be transferred are:
20
(a) any of its
*
net capital losses for income years earlier than the
21
income year that includes the completion time (the transfer
22
year), to the extent that they were not
*
utilised before the
23
completion time; and
24
(b) any net capital loss it would have made for the transfer year
25
were the transfer year to have ended at the completion time;
26
and
27
(c) any of its
*
tax losses for income years earlier than the transfer
28
year, to the extent that they were not utilised before the
29
completion time; and
30
(d) any tax loss it would have incurred for the transfer year were
31
the transfer year to have ended at the completion time;
32
worked out subject to the modifications set out in this section.
33
Note:
If the entity choosing to transfer losses also chooses an asset roll-over
34
for the same arrangement, none of the CGT events for the roll-over
35
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 1 Main amendment
8 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
will contribute towards a loss transferred under this Subdivision (see
1
section 311-45 and subsections 311-50(1) and 311-55(1)).
2
Modifications for transferred losses
3
(2) For a choice under Subdivision 311-B by an entity that is a trustee
4
of a
*
complying superannuation fund, work out those losses by
5
only considering
*
capital gains,
*
capital losses, assessable income
6
and deductions to the extent that they are reasonably attributable to
7
the
*
accrued default amount of the member.
8
(3) For a choice under Subdivision 311-B by an entity that is a
*
life
9
insurance company, work out those losses by only considering the
10
following to the extent that they are reasonably attributable to the
11
*
accrued default amount of the member, and to a
*
complying
12
superannuation/FHSA life insurance policy issued by the
13
transferring entity and held by the original fund:
14
(a)
*
capital gains from
*
complying superannuation/FHSA assets;
15
(b)
*
capital losses from complying superannuation/FHSA assets;
16
(c) assessable income covered by subsection 320-137(2) (about
17
complying superannuation/FHSA assets);
18
(d) deductions covered by subsection 320-137(4) (about
19
complying superannuation/FHSA assets).
20
(4) For a choice under Subdivision 311-B by an entity that is a trustee
21
of a
*
pooled superannuation trust, work out those losses by only
22
considering
*
capital gains,
*
capital losses, assessable income and
23
deductions to the extent that they are reasonably attributable:
24
(a) to the
*
accrued default amount of the member; and
25
(b) to units in the transferring entity held by the original fund.
26
311-25 Effect of transferring a net capital loss
27
To the extent that a loss of a kind referred to in
28
paragraph 311-20(1)(a) or (b) is transferred to a receiving entity:
29
(a) if the loss is for an income year earlier than the transfer
30
year--the transferring entity is taken not to have made the
31
loss for that earlier income year; and
32
(b) if the loss is for the transfer year--the following is reduced
33
by an amount equal to the transferred amount:
34
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Main amendment Part 1
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 9
(i) if the transferring entity is a
*
life insurance company--
1
the sum of the transferring entity's
*
capital losses from
2
*
complying superannuation/FHSA assets for the transfer
3
year;
4
(ii) otherwise--the sum of the transferring entity's capital
5
losses for the transfer year; and
6
(c) if the receiving entity is a life insurance company--an
7
amount equal to the transferred amount is taken to be a
8
capital loss from complying superannuation/FHSA assets
9
made by the receiving entity on the day of the completion
10
time; and
11
(d) if the receiving entity is not a life insurance company--an
12
amount equal to the transferred amount is taken to be a
13
capital loss made by the receiving entity on the day of the
14
completion time.
15
311-30 Effect of transferring a tax loss
16
To the extent that a loss of a kind referred to in
17
paragraph 311-20(1)(c) or (d) is transferred to a receiving entity:
18
(a) if the loss is for an income year earlier than the transfer
19
year--the transferring entity is taken not to have made the
20
loss for that earlier income year; and
21
(b) if the loss is for the transfer year--the following is reduced
22
by an amount equal to the transferred amount:
23
(i) if the transferring entity is a
*
life insurance company--
24
the sum of the transferring entity's deductions covered
25
by subsection 320-137(4) (about complying
26
superannuation/FHSA assets) for the transfer year;
27
(ii) otherwise--the sum of the transferring entity's
28
deductions for the transfer year; and
29
(c) for the purposes of sections 36-15 and 36-17, an amount
30
equal to the transferred amount is taken to be:
31
(i) if the receiving entity is a life insurance company--a
32
*
tax loss of the
*
complying superannuation/FHSA class
33
that the receiving entity incurred for the income year of
34
the receiving entity immediately prior to the income
35
year in which the completion time occurs; or
36
(ii) otherwise--a tax loss that the receiving entity incurred
37
for the income year of the receiving entity immediately
38
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 1 Main amendment
10 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
prior to the income year in which the completion time
1
occurs; and
2
(d) for all other purposes of this Act, an amount equal to the
3
transferred amount is taken to be:
4
(i) if the receiving entity is a life insurance company--a tax
5
loss of the
*
complying superannuation/FHSA class that
6
the receiving entity incurred on the day of the
7
completion time; or
8
(ii) otherwise--a tax loss that the receiving entity incurred
9
on the day of the completion time.
10
311-35 Realisation of certain assets after completion time
11
(1) In working out the
*
net capital loss referred to in
12
paragraph 311-20(1)(b), or the sum of the transferring entity's
13
*
capital losses referred to in paragraph 311-25(b), treat any
14
amount:
15
(a) that is a
*
capital loss or
*
capital gain that the transferring
16
entity makes after the completion time; and
17
(b) that arises as a result of realisation of assets for the purpose
18
of enabling payment to the receiving entity in connection
19
with the transfer of the
*
accrued default amount of the
20
member;
21
as if the loss or gain were made during the transfer year but before
22
the completion time.
23
(2) In working out the
*
tax loss referred to in paragraph 311-20(1)(d),
24
or the sum of the transferring entity's deductions referred to in
25
paragraph 311-30(b), treat any amount:
26
(a) that is an amount of a deduction for the transferring entity, or
27
an amount of assessable income by the transferring entity,
28
arising after the completion time; and
29
(b) that arises as a result of realisation of assets for the purpose
30
of enabling payment to the receiving entity in connection
31
with the transfer of the
*
accrued default amount of the
32
member;
33
as if the amount of the deduction, or the amount of income, arose
34
during the transfer year but before the completion time.
35
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Main amendment Part 1
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 11
Subdivision 311-D--Consequences of choosing asset roll-over
1
Table of sections
2
311-40
Assets roll-over
3
311-45
CGT assets
4
311-50
Revenue assets
5
311-55
Further consequences for roll-overs involving life insurance companies
6
311-40 Assets roll-over
7
(1) The transferring entity can choose an asset roll-over for an asset in
8
relation to which, under the
*
arrangement, a
*
CGT event happens
9
if:
10
(a) subsection (2) applies to the asset; and
11
(b) an asset (the received asset) becomes an asset of one of the
12
following (the receiving entity) as a result of the event:
13
(i) the continuing fund for the choice;
14
(ii) a
*
pooled superannuation trust in which units are held
15
by the continuing fund for the choice just after the
16
completion time;
17
(iii) a
*
life insurance company with which a
*
complying
18
superannuation/FHSA life insurance policy is held by
19
the continuing fund for the choice just after the
20
completion time.
21
(2) The asset is an asset to which this subsection applies (an original
22
asset) if:
23
(a) in a case where the entity choosing under Subdivision 311-B
24
is a trustee of a
*
complying superannuation fund--the asset is
25
reasonably attributable to the
*
accrued default amount of the
26
member; or
27
(b) in a case where the entity choosing under Subdivision 311-B
28
is a
*
life insurance company--the asset is reasonably
29
attributable to:
30
(i) the accrued default amount of the member; and
31
(ii) a
*
complying superannuation/FHSA life insurance
32
policy issued by the transferring entity and held by the
33
original fund; or
34
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 1 Main amendment
12 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
(c) in a case where the entity choosing under Subdivision 311-B
1
is a trustee of a
*
pooled superannuation trust--the asset is
2
reasonably attributable to:
3
(i) the accrued default amount of the member; and
4
(ii) units in a pooled superannuation trust issued by the
5
transferring entity and held by the original fund.
6
311-45 CGT assets
7
If the roll-over is chosen:
8
(a) disregard any
*
capital gain or
*
capital loss the transferring
9
entity makes from transferring an original asset to the
10
receiving entity; and
11
(b) the first element of the received asset's
*
cost base, in the
12
hands of the receiving entity, is the transferring entity's cost
13
base just before the time of the
*
CGT event; and
14
(c) the first element of the received asset's
*
reduced cost base, in
15
the hands of the receiving entity is worked out similarly.
16
311-50 Revenue assets
17
Consequences for transferring entity
18
(1) For each of the original assets that are
*
revenue assets, the
19
transferring entity's gross proceeds for the relevant
*
CGT event are
20
taken, for the purposes of this Act, to be the amount (the deemed
21
proceeds) the transferring entity would need to have received in
22
order to have a nil profit and nil loss for the event.
23
Consequences for receiving entity
24
(2) For each of the received assets that are
*
revenue assets, the
25
receiving entity is taken, for the purposes of this Act, to have
26
incurred an amount for that asset at the time of the
*
CGT event that
27
is equal to the deemed proceeds for the corresponding original
28
asset.
29
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Main amendment Part 1
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 13
311-55 Further consequences for roll-overs involving life insurance
1
companies
2
(1) Section 320-200 does not apply for a
*
CGT event for the roll-over
3
if either the transferring entity or the receiving entity is a
*
life
4
insurance company.
5
Note:
Section 320 is about the consequences of transferring assets to or from
6
a complying superannuation/FHSA asset pool.
7
(2) If the receiving entity for the roll-over is a
*
life insurance
8
company, each received asset of that entity is taken:
9
(a) to be a
*
complying superannuation/FHSA asset of that entity;
10
and
11
(b) not to be, in whole or in part, a
*
life insurance premium.
12
Subdivision 311-E--Choices
13
Table of sections
14
311-60
Choices
15
311-60 Choices
16
(1) A choice under this Division must be made:
17
(a) by the day the transferring entity's
*
income tax return is
18
lodged for the transfer year for the entity; or
19
(b) within a further time allowed by the Commissioner.
20
(2) The way the transferring entity's
*
income tax return is prepared is
21
sufficient evidence of the making of the choice.
22
2 Application
23
The amendments made by this Part apply to income years that include
24
1 July 2013, and to later income years.
25
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 2 Other amendments
14 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
Part 2
--
Other amendments
1
Income Tax Assessment Act 1997
2
3 Subsection 40-340(1) (at the end of the table)
3
Add:
4
7
Disposal of asset as part of
transfer to a MySuper
product
The transferor chooses a roll-over under
Subdivision 311-B in relation to the disposal.
4 Section 112-97 (at the end of the table)
5
Add:
6
36
An entity chooses an asset
roll-over, or chooses to
transfer a loss and chooses an
asset roll-over, under
Subdivision 311-B
First element of cost base
and reduced cost base
Section 311-45
5 Subsection 115-30(1) (at the end of the table)
7
Add:
8
11
A
*
CGT asset that the acquirer
*
acquired
as a received asset for a roll-over under
Subdivision 311-D
When the transferring entity for
the roll-over acquired the
corresponding original asset for
the roll-over
6 At the end of section 290-170
9
Add:
10
Amounts transferred to a MySuper product in another complying
11
superannuation fund
12
(6) If:
13
(a) under an
*
arrangement, the fund (the original fund) transfers
14
an
*
accrued default amount of a member (within the meaning
15
of the Superannuation Industry (Supervision) Act 1993):
16
(i) as a result of an election made under
17
paragraph 29SAA(1)(b) of that Act; or
18
(ii) under section 388 of that Act;
19
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Other amendments Part 2
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 15
to another superannuation fund that is a continuing fund for
1
the purposes of subsection 311-10(3); and
2
(b) the arrangement takes effect after the making of your
3
contribution; and
4
(c) you are a member (within the meaning of that Act) of the
5
continuing fund immediately after the arrangement takes
6
effect; and
7
(d) you did not give a notice under subsection (1) in relation to
8
the contribution while you were a member (within the
9
meaning of that Act) of the original fund;
10
then subsections (1) to (4) of this section, and section 290-180,
11
apply as if references in those provisions to the original fund (or
12
the trustee of the original fund) were references to the continuing
13
fund (or the trustee of the continuing fund).
14
7 At the end of section 290-180
15
Add:
16
Amounts transferred to a MySuper product in another complying
17
superannuation fund
18
(6) If:
19
(a) under an
*
arrangement, the fund (the original fund) transfers
20
an
*
accrued default amount of a member (within the meaning
21
of the Superannuation Industry (Supervision) Act 1993):
22
(i) as a result of an election made under
23
paragraph 29SAA(1)(b) of that Act; or
24
(ii) under section 388 of that Act;
25
to another superannuation fund that is a continuing fund for
26
the purposes of subsection 311-10(3); and
27
(b) the arrangement takes effect after a valid notice is given
28
under section 290-170; and
29
(c) you are a member (within the meaning of that Act) of the
30
continuing fund immediately after the arrangement takes
31
effect; and
32
(d) you seek to vary the valid notice after you cease to be a
33
member (within the meaning of that Act) of the original fund;
34
then subsections (2) and (3A) apply as if references in those
35
subsections to the original fund (or the trustee of the original fund)
36
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 2 Other amendments
16 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
were references to the continuing fund (or the trustee of the
1
continuing fund).
2
8 Paragraphs 292-25(2)(b) and 292-90(2)(b)
3
After "subsection 290-170(5) (about successor funds)", insert "or
4
subsection 290-170(6) (about MySuper products)".
5
9 At the end of subparagraph 293-30(2)(b)(ii)
6
Add "or subsection 290-170(6) (about MySuper products)".
7
10 Subsection 295-190(1) (table item 2A)
8
Repeal the item, substitute:
9
2A
CSF
*
RSA provider
A
*
roll-over superannuation benefit
that an individual is taken to receive
under section 307-15 to the extent that:
(a) the CSF or
*
RSA is:
(i) a
*
successor fund; or
(ii) a superannuation fund that is
a continuing fund for the
purposes of
subsection 311-10(3); and
(b) the benefit relates to a contribution
that, before it was transferred to the
successor fund or continuing fund,
was not covered by a valid and
acknowledged notice given to any
*
superannuation provider under
section 290-170; and
(c) while the benefit is held in the
successor fund or continuing fund,
the contribution becomes covered
by a valid and acknowledged notice
given to the superannuation
provider of that fund under that
section
11 Subsection 295-490(1) (table item 2A)
10
Repeal the item, substitute:
11
2A
CSF
*
RSA provider
A
*
roll-over superannuation benefit,
to the extent that:
(a) the CSF or
*
RSA is:
The notice
mentioned in
paragraph (c) is
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Other amendments Part 2
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 17
(i) a
*
successor fund; or
(ii) a superannuation fund that
is a continuing fund for the
purposes of
subsection 311-10(3); and
(b) the benefit relates to a
contribution that, before it was
transferred to the successor fund
or continuing fund, was covered
by a valid and acknowledged
notice given to any
*
superannuation provider under
section 290-170; and
(c) the contribution is reduced by a
notice under section 290-180
received by the superannuation
provider of the successor fund or
continuing fund (whether or not
the contribution has previously
been reduced by a notice given to
any superannuation provider
under that section)
received
12 Subsection 995-1(1)
1
accrued default amount has the meaning given by section 20B of
2
the Superannuation Industry (Supervision) Act 1993.
3
13 Application
4
The amendments made by this Part apply to income years that include
5
1 July 2013, and to later income years.
6
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 3 Repeals and related amendments
18 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
Part 3
--
Repeals and related amendments
1
Income Tax Assessment Act 1997
2
14 Subsection 40-340(1) (table item 7)
3
Repeal the item.
4
15 Section 112-97 (table item 36)
5
Repeal the item.
6
16 Subsection 115-30(1) (table item 11)
7
Repeal the item.
8
17 Subsection 290-170(6)
9
Repeal the subsection.
10
18 Subsection 290-180(6)
11
Repeal the subsection.
12
19 Paragraphs 292-25(2)(b) and 292-90(2)(b)
13
Omit "or subsection 290-170(6) (about MySuper products)".
14
20 Subparagraph 293-30(2)(b)(ii)
15
Omit "or subsection 290-170(6) (about MySuper products)".
16
21 Subsection 295-190(1) (table item 2A)
17
Repeal the item, substitute:
18
2A
CSF
*
RSA provider
A
*
roll-over superannuation benefit
that an individual is taken to receive
under section 307-15 to the extent that:
(a) the CSF or
*
RSA is a
*
successor
fund; and
(b) the benefit relates to a contribution
that, before it was transferred to the
successor fund, was not covered by
a valid and acknowledged notice
given to any
*
superannuation
Loss relief and asset roll-over for transfer of amounts to a MySuper product Schedule 1
Repeals and related amendments Part 3
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 19
provider under section 290-170;
and
(c) while the benefit is held in the
successor fund, the contribution
becomes covered by a valid and
acknowledged notice given to the
superannuation provider of the
successor fund under that section
22 Subsection 295-490(1) (table item 2A)
1
Repeal the item, substitute:
2
2A
CSF
*
RSA provider
A
*
roll-over superannuation benefit,
to the extent that:
(a) the CSF or
*
RSA is a
*
successor
fund; and
(b) the benefit relates to a
contribution that, before it was
transferred to the successor fund,
was covered by a valid and
acknowledged notice given to any
*
superannuation provider under
section 290-170; and
(c) the contribution is reduced by a
notice under section 290-180
received by the superannuation
provider of the successor fund
(whether or not the contribution
has previously been reduced by a
notice given to any
superannuation provider under
that section)
The notice
mentioned in
paragraph (c) is
received
23 Division 311
3
Repeal the Division.
4
24 Subsection 995-1(1) (definition of accrued default amount)
5
Repeal the definition.
6
25 Application
7
(1)
The amendments made by items 19, 20, 21 and 22 apply in relation to:
8
Schedule 1 Loss relief and asset roll-over for transfer of amounts to a MySuper product
Part 3 Repeals and related amendments
20 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
(a) notices given under section 290-170 of the Income Tax
1
Assessment Act 1997 on or after the commencement of this
2
item; and
3
(b) notices of variation given under section 290-180 of that Act
4
on or after the commencement of this item (whether the
5
notices being varied were given before, on or after the
6
commencement of this item).
7
(2)
If, before the commencement of this item, paragraph 290-180(6)(a) of
8
the Income Tax Assessment Act 1997 applied to the transfer of an
9
accrued default amount to a superannuation fund:
10
(a) section 290-180 of that Act as amended by this Part applies
11
after that commencement to a variation of a valid notice in
12
relation to a contribution related to that accrued default
13
amount as if subsection 290-180(6) of that Act had not been
14
repealed by this Part; and
15
(b) table item 2A of subsection 295-490(1) of that Act as
16
amended by this Part applies after that commencement as if
17
references in that table item to a successor fund included
18
references to that superannuation fund.
19
Sustaining the superannuation contribution concession: consequential amendments for
Defence Force superannuation Schedule 2
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 21
Schedule 2
--
Sustaining the superannuation
1
contribution concession:
2
consequential amendments for
3
Defence Force superannuation
4
5
Defence Force Retirement and Death Benefits Act 1973
6
1 Subsection 3(1) (definition of benefit)
7
Repeal the definition, substitute:
8
benefit means pension benefit, and includes the following:
9
(a) a lump sum payment under subsection 32(2) or section 48;
10
(b) a refund of contributions under section 56;
11
(c) a release authority lump sum paid in relation to a release
12
authority issued to a person under Subdivision 135-A in
13
Schedule 1 to the Taxation Administration Act 1953.
14
2 Subsection 3(1)
15
Insert:
16
release authority lump sum has the meaning given by section 49K.
17
3 At the end of subsection 24(2A)
18
Add:
19
Note:
This amount is reduced if a release authority lump sum has been paid:
20
see section 49M.
21
4 At the end of subsection 32A(4)
22
Add:
23
Note:
This amount is reduced if a release authority lump sum has been paid:
24
see section 49M.
25
5 Subsection 48(5)
26
Repeal the subsection, substitute:
27
(5) In this section, a reference to the amount of retirement pay or
28
invalidity pay paid or payable to a member of the scheme before
29
the member's death shall be read as including the following:
30
Schedule 2 Sustaining the superannuation contribution concession: consequential
amendments for Defence Force superannuation
22 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
(a) if an election has been made, by or on behalf of the member,
1
under section 24 or 32A, to commute a portion of the
2
retirement pay or invalidity pay, as the case may be, payable
3
to the member--the amount paid or payable to or in respect
4
of the member under paragraph 24(3)(a) or 32A(5)(a), as the
5
case may be, by virtue of that election;
6
(b) if the member's retirement pay or invalidity pay is reduced
7
under section 49N to reflect a release authority lump sum
8
paid in relation to a release authority issued to the member--
9
the amount of the release authority lump sum.
10
6 After Part VIA
11
Insert:
12
Part VIB--Sustaining the superannuation
13
contribution concession: release of benefit
14
to meet deferred tax liability
15
16
49K Release of benefits under a release authority
17
A lump sum (the release authority lump sum) may be paid at a
18
time in compliance with a release authority issued to a person
19
under item 3 of the table in subsection 135-10(1) in Schedule 1 to
20
the Taxation Administration Act 1953 and given to CSC in
21
accordance with Subdivision 135-B in that Schedule.
22
Note:
The purpose of the release authority is to allow a lump sum to be paid
23
to the Commissioner to meet a debt the person has under
24
Subdivision 133-C in Schedule 1 to the Taxation Administration Act
25
1953.
26
49L Limit on amount that may be released
27
(1) In addition to any requirements in Division 135 in Schedule 1 to
28
the Taxation Administration Act 1953, the amount of a release
29
authority lump sum must not have the effect that a benefit of the
30
person under this Act is reduced below zero.
31
(2) For the purpose of subsection (1), the effect of a release authority
32
lump sum on the amount of a person's benefit is to be worked out
33
Sustaining the superannuation contribution concession: consequential amendments for
Defence Force superannuation Schedule 2
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 23
after taking account of any reduction under another provision of
1
this Act, apart from the following:
2
(a) a reduction under section 24 in relation to an amount not yet
3
paid;
4
(b) a reduction under section 32A in relation to an amount not
5
yet paid.
6
Note:
Other provisions that reduce a person's benefit before a release
7
authority lump sum include the following:
8
(a) subsections 23(6) and 31(4) (which deal with surcharge
9
elections), if the election under section 124 is made before giving
10
CSC the release authority (see subsection 124(3));
11
(b) subsections 75(3A) and (4A) (which deal with surcharge
12
deduction amounts for deferred benefits);
13
(c) Part VIA (which deals with family law superannuation splitting).
14
49M Priority order in relation to commutation of pension
15
(1) This section applies if:
16
(a) a person gives CSC a release authority issued to the person
17
under item 3 of the table in subsection 135-10(1) in
18
Schedule 1 to the Taxation Administration Act 1953; and
19
(b) an amount has not yet been paid to the person by virtue of a
20
commutation under section 24 or 32A.
21
(2) The release authority lump sum is to be paid before an amount is
22
paid to the person by virtue of a commutation under section 24 or
23
32A.
24
(3) To avoid doubt, the person's retirement pay or invalidity pay is to
25
be reduced under this Part to reflect the release authority lump
26
sum, and the following are to be worked out having regard to that
27
reduced amount of retirement pay or invalidity pay:
28
(a) the amount that may be paid by virtue of the commutation;
29
(b) the retirement pay or invalidity pay payable after the
30
commutation takes effect.
31
49N Calculation of person's benefits after payment of release
32
authority lump sum
33
(1) If a release authority lump sum is paid in relation to a release
34
authority issued to a person, any benefits to which the person is
35
Schedule 2 Sustaining the superannuation contribution concession: consequential
amendments for Defence Force superannuation
24 Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other
Measures) Bill 2013 No. , 2013
entitled under this Act must be reduced to reflect the release
1
authority lump sum.
2
(2) If:
3
(a) a release authority lump sum is paid in relation to a release
4
authority issued to a person; and
5
(b) the person is entitled to retirement pay or invalidity pay;
6
the rate at which retirement pay or invalidity pay is payable to the
7
person is to be reduced so that it equals the amount worked out
8
using this formula:
9
Release authority lump sum
Pre-reduction rate
Conversion factor
10
where:
11
conversion factor means the factor that is applicable to the person
12
under the determination made by CSC under subsection (3).
13
pre-reduction rate means the annual rate at which retirement pay
14
or invalidity pay would, apart from this section (but having regard
15
to any other provisions of this Act that affect that rate at the time),
16
be payable to the person at the time that pay becomes payable.
17
(3) CSC may, by legislative instrument, determine the conversion
18
factor, or the method for working out the conversion factor, for the
19
purposes of subsection (2).
20
49P Modification for candidates at parliamentary elections
21
For the purposes of paragraph 55(5)(a), disregard a benefit that is a
22
release authority lump sum.
23
Note:
Subsection 55(5) is about benefits that must be repaid.
24
49Q Modification for section 62
25
(1) If:
26
(a) a person's retirement pay or invalidity pay, worked out
27
having regard to section 49N, is cancelled under
28
subsection 62(1); and
29
(b) after that cancellation, the person becomes entitled to
30
retirement pay or invalidity pay;
31
Sustaining the superannuation contribution concession: consequential amendments for
Defence Force superannuation Schedule 2
Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill
2013 No. , 2013 25
the rate of the person's retirement pay or invalidity pay mentioned
1
in paragraph (b) is to be reduced in accordance with section 49N.
2
(2) However, for the purpose of the formula in subsection 49N(2), the
3
amount of the release authority lump sum is reduced by the amount
4
of any reductions made because of the previous application of
5
section 49N to the retirement pay or invalidity pay before it was
6
cancelled.
7
7 At the end of section 124
8
Add:
9
(3) However, a person may not make an election under subsection (1)
10
if the person has given CSC a release authority issued to the person
11
under item 3 of the table in subsection 135-10(1) in Schedule 1 to
12
the Taxation Administration Act 1953.
13
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