Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1992 No. 208 of 1992 - SECT 45

45. Section 27D of the Principal Act is amended:
(a) by omitting from subparagraphs (1)(b)(i) and (ii) "this paragraph" and
substituting "this section";
(b) by omitting from subparagraph (1)(b)(iii) "this subparagraph" and
substituting "this section";

   (c)  by adding at the end the following subsections:

"(4) A taxpayer's election under subsection (1) is taken to have specified the
amount worked out using the steps set out in the following provisions of this
section as the extent to which the taxpayer wishes a particular applied amount
to be regarded as consisting of an eligible component covered by
sub-subparagraph (1)(b)(iii)(A), (B) or (BA).

"(5) Step 1: the applied amount consists of the following notional components:

   (a)  the notional concessional component, which is the amount (including a
        nil amount) specified in the taxpayer's election under subsection (1)
        as the extent to which the taxpayer wishes the applied amount to be
        regarded as consisting of the eligible component covered by
        sub-subparagraph (1)(b)(iii)(D);

   (b)  the notional undeducted contributions, which is the amount (including
        a nil amount) specified in the taxpayer's election under subsection
        (1) as the extent to which the taxpayer wishes the applied amount to
        be regarded as consisting of the eligible component covered by
        sub-subparagraph (1)(b)(iii)(C);

   (c)  the notional pre-July 83 component, which is the lesser of the
        following amounts:

        (i)    the amount worked out using the formula:
                      Notional             Pre-July 83

        Applied   -   concessional    x    Total period

        amount        component
where:
'Pre-July 83' is the number of whole days (if any) in the eligible service
period that occurred before 1 July 1983;
'Total period' is the number of whole days in the eligible service period;

        (ii)   the amount represented by the component (Applied
               amount-Notional concessional component) in subparagraph (i),
               reduced by the notional undeducted contributions;

   (d)  the notional post-June 83 component, which is the applied amount
        reduced by the other notional components.

"(6) Step 2: if the applied amount includes a notionalpre-July 83 component,
the taxpayer's election under subsection (1) is taken to have specified that
notional component as the extent to which the taxpayer wishes the applied
amount to be regarded as consisting of the eligible component covered by
sub-subparagraph (1)(b)(iii)(BA).

"(7) Step 3: if the applied amount includes a notional post-June 83 component,
the taxpayer's election under subsection (1) has no effect unless the
following rules are complied with:

   (a)  the sum of:

        (i)    the amount specified in the taxpayer's election under
               subsection (1) as the extent to which the taxpayer wishes the
               applied amount to be regarded as consisting of the eligible
               component covered by sub-subparagraph (1)(b)(iii)(A); and

        (ii)   the amount specified in the taxpayer's election under
               subsection (1) as the extent to which the taxpayer wishes the
               applied amount to be regarded as consisting of the eligible
               component covered by sub-subparagraph (1)(b)(iii)(B); must
               equal the notional post-June 83 component of the applied
               amount;

   (b)  the amount specified in the taxpayer's election under subsection (1)
        as the extent to which the taxpayer wishes the applied amount to be
        regarded as consisting of the eligible component covered by
        sub-subparagraph (1)(b)(iii)(B) must not exceed the untaxed element of
        the post-June 83 component of the qualifying eligible termination
        payment, reduced by the sum of:

        (i)    if there are one or more other applied amounts which relate to
               one or more earlier qualifying roll-over payments (which other
               applied amounts are called 'previous applied amounts')-the
               amount specified in the taxpayer's election under subsection
               (1) as the extent to which the taxpayer wishes the previous
               applied amounts to be regarded as consisting of that eligible
               component; and

        (ii)   the untaxed element of the retained amount of the post-June 83
               component of the qualifying eligible termination payment;

   (c)  the amount specified in the taxpayer's election as the extent to which
        the taxpayer wishes the applied amount to be regarded as consisting of
        the eligible component covered by sub-subparagraph (1)(b)(iii)(A) must
        not exceed the sum of:

        (i)    the taxed element of the post-June 83 component of the
               qualifying eligible termination payment, reduced, in a case
               where there are one or more other applied amounts which relate
               to one or more earlier qualifying roll-over payments (which
               other applied amounts are called 'previous applied amounts'),
               by the sum of the amounts specified in the taxpayer's election
               under subsection (1) as the extent to which the taxpayer wishes
               the previous applied amounts to be regarded as consisting of
               that eligible component; and

        (ii)   if the sum of:

                (A)  the notional post-June 83 component of the applied
                     amount; and

                (B)  if there are one or more other applied amounts-the
                     notional post-June 83 components of those other applied
                     amounts; and

                (C)  the retained amount of the post-June 83 component of the
                     qualifying eligible termination payment; exceeds the
                     post-June 83 component of the qualifying eligible
                     termination payment-the amount calculated using the
                     formula:
Notional post-June 83
    component of applied  -  Limit calculated   +   Amount calculated

    amount                  under paragraph (b)     under subparagraph (i).".