Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1997 No. 147 of 1997 - SCHEDULE 10

Schedule 10-Rebate for superannuation contributions made
on behalf of a low-income or non-working spouse Income Tax Assessment Act 1936
1 After Subdivision AAC of Division 17 of Part III
Insert:
Subdivision AACA-Rebate for superannuation contributions made
on behalf of a low income or non-working spouse 159T Rebate for superannuation
contributions made in relation to a spouse

(1) This section applies if the following conditions are satisfied in relation
to a taxpayer and in relation to a year of income of the taxpayer:

   (a)  the taxpayer has a spouse in relation to whom he or she makes one or
        more eligible spouse contributions; and

   (b)  the taxpayer and his or her spouse are residents at the time that the
        taxpayer makes the eligible spouse contribution; and

   (c)  the spouse's assessable income is less than $13,800. Note: For the
        meaning of eligible spouse contribution, see section 159TC.

(2) The taxpayer is entitled to a rebate of tax in the taxpayer's assessment
for the year of income equal to 18% of the lesser of:

   (a)  $3,000 reduced by $1 for every $1 of the amount (if any) by which the
        spouse's assessable income of that year exceeds $10,800; or

   (b)  the total of the eligible spouse contributions made in relation to the
        spouse by the taxpayer in that year. 159TA Taxpayers may qualify for
        rebate in relation to more than one spouse
If, in relation to a year of income, a taxpayer qualifies for the rebate under
section 159T in respect of more than one spouse, the total of rebates under
that section for which the taxpayer qualifies is equal to the lesser of:

   (a)  the sum of the rebate amounts for which the taxpayer qualifies in
        relation to each spouse; or

   (b)  $540. 159TB Quotation of tax file number
A taxpayer who qualifies for a rebate under section 159T in respect of an
eligible spouse may quote the tax file number of the spouse. The taxpayer must
obtain the consent of the spouse to the quotation. 159TC Definitions
For the purposes of this Subdivision:
complying superannuation fund has the same meaning as in Part IX.
dependant has the same meaning as in the Superannuation Industry 
(Supervision) Act 1993 .
eligible spouse contributions, in relation to a taxpayer, means contributions
made by the taxpayer where:

   (a)  the contributions are made in relation to a person who is the
        taxpayer's spouse at the time those contributions are made; and

   (b)  the contributions are made to a fund that is a complying
        superannuation fund in relation to the year of income of the fund in
        which the contributions are made; and

   (c)  the contributions are made to obtain superannuation benefits for the
        spouse or, in the event of the death of the spouse, for dependants of
        the spouse; and

   (d)  the taxpayer is not entitled to a deduction under section 82AAC in
        relation to the contributions. spouse, in relation to a taxpayer:

   (a)  includes another person who, although not legally married to the
        taxpayer, lives with the taxpayer on a bona fide domestic basis as the
        husband or wife of the taxpayer; but:

   (b)  does not include a person who lives separately and apart from the
        taxpayer on a permanent basis. 2 Section 159TC (definition of eligible
        spouse contributions)
Repeal the definition, substitute:
eligible spouse contributions, in relation to a taxpayer, means contributions
made by a taxpayer in relation to a person who is the taxpayer's spouse at the
time those contributions are made and the taxpayer is not entitled to a
deduction under section 82AAC (including a deduction under that section due to
the operation of section 82AADA) in relation to the contributions and:

   (a)  the contributions are made to a fund where:

        (i)    the fund is a complying superannuation fund in relation to the
               year of income of the fund in which the contributions are made;
               and

        (ii)   the contributions are made to obtain superannuation benefits
               for the spouse or, in the event of the death of the spouse, for
               dependants of the spouse; or

   (b)  the contributions are made to an RSA to obtain superannuation benefits
        for the spouse or, in the event of the death of the spouse, for
        dependants of the spouse. 3 Paragraph 221YCAA(2)(m)
After "159N", insert ", 159T". 4 Subparagraph 274(1)(a)(i)
Repeal the subparagraph, substitute:

        (i)    contributions made for the purpose of making provision for
               superannuation benefits for another person, other than:

                (A)  contributions made by a person that is, when the
                     contributions are made, a trustee of an exempt life
                     assurance fund (within the meaning of Division 6C of Part
                     III); or

                (B)  contributions made by a person that is, when the
                     contributions are made, a trustee of a complying
                     superannuation fund, a complying ADF or a PST; or

                (C)  eligible spouse contributions within the meaning of
                     section 159T; 5 Subparagraph 274(1)(ba)(i)
After "contributions", insert "other than eligible spouse contibutions within
the meaning of section 159T,". 6 Application

(1) The amendments made by items 1, 2, 4 and 5 of this Schedule apply to
contributions made on or after 1 July 1997.

(2) The amendment made by item 3 of this Schedule applies to provisional tax
(including instalments) payable in respect of income of the 1997-98 year of
income and all later years of income.