Commonwealth Numbered Acts Commonwealth Numbered Acts
Income Tax Assessment Act 1997
1 Section 11‑15 (after table item headed "life insurance companies")
Insert:
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small business retirement exemption |
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payment by company or trust, arising from CGT event ... |
152‑310(2) |
2 After paragraph 82‑135(f)
Insert:
(fa) a payment (or part of one) made by a company or trust as mentioned in subsection 152‑310(2);
3 Paragraph 152‑305(1)(b)
Repeal the paragraph, substitute:
(b) if you are under 55 just before you make the choice--you contribute an amount equal to the asset's * CGT exempt amount to a * complying superannuation fund or an * RSA; and
Note: For the non‑deductibility of the contribution, see subsection 290‑150(4).
(c) the contribution is made:
(i) if the relevant CGT event is CGT event J2, J5 or J6--when you made the choice; or
(ii) otherwise--at the later of when you made the choice and when you received the proceeds.
4 Subsection 152‑305(1) (note 2)
Repeal the note.
5 Subsection 152‑310(2)
Repeal the subsection, substitute:
Additional consequences in relation to company or trust
(2) Any payment or part of one the company or trust makes to comply with section 152‑325:
(a) is * exempt income of the * CGT concession stakeholder to whom it is made; and
(b) cannot be deducted from the company's or trust's assessable income.
6 Subsections 152‑310(4) and (5)
Repeal the subsections.
7 After subsection 152‑325(3)
Insert:
(3A) If the * CGT concession stakeholder to whom the payment is made is an employee of the company or trust, the payment must not be of a kind mentioned in section 82‑135 (disregarding paragraph (fa) of that section).
8 Subsections 152‑325(7) and (8)
Repeal the subsections, substitute:
(7) If a * CGT concession stakeholder is under 55 just before a payment is made under this section in relation to him or her:
(a) the company or trust must make the payment to the CGT concession stakeholder by contributing it for the stakeholder to a * complying superannuation fund or an * RSA in respect of the stakeholder; and
(b) the company or trust must notify the trustee of the fund or the * RSA provider at the time the contribution is made that the contribution is made in accordance with this section.
Note: For the non‑deductibility of the contribution, see subsection 290‑150(4).
(8) For the purposes of Part 3‑30, treat a payment mentioned in paragraph (7)(a), made in accordance with this section, as a contribution made by the * CGT concession stakeholder.
(9) If:
(a) a payment is made to a * CGT concession stakeholder in accordance with this section (disregarding section 109 of the Income Tax Assessment Act 1936 ); and
(b) the stakeholder is an employee of the company or trust;
treat the payment, for the purposes of section 109 of that Act, as made in consequence of the termination of employment of the stakeholder.
9 At the end of section 290‑150
Add:
(4) If the contribution is attributable in whole or part to a * capital gain from a * CGT event:
(a) if you disregarded all or part of the capital gain from the CGT event under subsection 152‑305(1) and you were under 55 just before you made the choice mentioned in that subsection--you cannot deduct the contribution to the extent that it is attributable to the capital gain; or
(b) if a company or trust disregarded all or part of the capital gain from the CGT event under subsection 152‑305(2) and you were under 55 just before the contribution was made--you cannot deduct the contribution to the extent that it is attributable to the capital gain.
10 Paragraph 292‑100(4)(c)
Omit "your stakeholder's control percentage (within the meaning of subsection 152‑125(3))", substitute "your stakeholder's participation percentage (within the meaning of subsection 152‑125(2))".
11 Subsection 292‑100(6)
Omit " * controlling individual", substitute " * significant individual".
12 Application
(1) The amendments made by this Schedule apply to CGT events happening in the 2007‑08 income year or later income years.
(2) For the purposes of section 292‑80 of the Income Tax (Transitional Provisions) Act 1997 , the previous 2 items of this Schedule also apply to CGT events happening in the period mentioned in subsection 292‑80(1) of that Act.