Commonwealth Numbered Acts Commonwealth Numbered ActsPart 1 -- Excess concessional contributions
Income Tax Assessment Act 1997
1 Subsection 291-20(2)
Repeal the subsection, substitute:
(2) Your concessional contributions cap is:
(a) for the 2017-2018 financial year--$25,000; or
(b) for the 2018-2019 financial year or a later financial year--the amount worked out by indexing annually the amount mentioned in paragraph (a).
Note: Subdivision 960-M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap: see section 960-285.
2 Paragraph 291-25(2)(c)
Repeal the paragraph, substitute:
(c) it is not an amount mentioned in subsection 295-200(2); and
(d) it is not an amount mentioned in item 2 of the table in subsection 295-190(1).
3 Subsection 291-25(4)
Repeal the subsection, substitute:
(4) For the purposes of paragraph (2)(b), disregard:
(a) table item 5.3 in section 50-25 (about income tax exemption for constitutionally protected funds); and
(b) Subdivision 295-D (about excluded contributions).
4 Section 291-160
Omit "(1)".
5 Subsection 291-160(2)
Repeal the subsection.
6 Section 291-165
Before "Despite", insert "(1)".
7 After paragraph 291-165(b)
Insert:
; and (c) the amount (if any) by which your * defined benefit contributions for the financial year in respect of the defined benefit interest or interests exceed those notional taxed contributions.
Note: Section 291-370 prevents some contributions from causing your concessional contributions for a financial year to exceed the concessional contributions cap.
(2) In working out your * defined benefit contributions for the * financial year for the purposes of paragraph (1)(c):
(a) if Subdivision 293-E applies to you for the income year corresponding to the financial year--disregard subsection 293-150(3); and
(b) if Subdivision 293-F applies to you--disregard subsection 293-195(2).
Note: Section 291-370 prevents some contributions from causing your concessional contributions for a financial year to exceed the concessional contributions cap.
8 After Subdivision 291-C
Insert:
Subdivision 291-CA -- Contributions that do not result in excess contributions
291-365 What this Subdivision is about
Some contributions and other amounts are treated as always being within your concessional contributions cap, and therefore cannot be excess concessional contributions.
Table of sections
Operative provisions
291-370 Contributions that do not result in excess contributions
291-370 Contributions that do not result in excess contributions
(1) In working out your * concessional contributions for a * financial year, treat the sum of the following as an amount equal to your * concessional contributions cap under subsection 291-20(2) for the financial year:
(a) contributions made in respect of you for the financial year to a * constitutionally protected fund that would (disregarding this section) be concessional contributions;
(b) if any of your * notional taxed contributions for the financial year:
(i) are worked out under section 291-170 of the Income Tax (Transitional Provisions) Act 1997 ; or
(ii) are not worked out under that section, but only because those notional taxed contributions did not meet the requirements of paragraph 291-170(2)(b) or (4)(b) of that Act;
the amount of those notional taxed contributions;
(c) if your * defined benefit contributions for the financial year (other than contributions and amounts covered by paragraph (a)) exceed your notional taxed contributions for the financial year--the amount of that excess;
if that sum would otherwise exceed your concessional contributions cap under subsection 291-20(2) for the financial year.
Note: This subsection does not take into account any increase in your concessional contributions cap under subsection 291-20(4).
(2) For the purposes of paragraph (1)(a), treat any amounts covered by subsection 291-25(3) or paragraph 291-165(1)(b) or (c) for the * financial year that relate to a * superannuation interest of yours in the fund as if they were contributions made in respect of you for the financial year to the fund.
(3) This section has effect despite sections 291-25 and 291-165 of this Act and section 291-170 of the Income Tax (Transitional Provisions) Act 1997 .
Income Tax (Transitional Provisions) Act 1997
9 Subdivision 291-B
Repeal the Subdivision.
10 At the end of subsection 291-170(2)
Add:
Note: In some cases, section 291-370 of the Income Tax Assessment Act 1997 has the effect of replacing this subsection with a similar rule covering a broader class of contributions and amounts.
11 At the end of subsection 291-170(4)
Add:
Note: In some cases, section 291-370 of the Income Tax Assessment Act 1997 has the effect of replacing this subsection with a similar rule covering a broader class of contributions and amounts.
12 At the end of section 291-170
Add:
Constitutionally protected funds
(6) This section does not apply in relation to a defined benefit interest in a constitutionally protected fund.
13 Application of amendments
The amendments made by this Part apply in relation to the financial year starting on 1 July 2017 and later financial years.
Income Tax Assessment Act 1997
14 Section 293-1
Omit "very high income", substitute "high income".
15 Section 293-1
Omit "$300,000", substitute "$250,000".
16 Sections 293-5 and 293-10
Omit "very high income", substitute "high income".
17 Section 293-10
Omit "$300,000", substitute "$250,000".
18 Subsections 293-20(1), 293-155(1) and 293-200(1)
Omit "$300,000", substitute "$250,000".
Taxation Administration Act 1953
19 Subsection 133-15(1) in Schedule 1 (note)
Omit "$300,000", substitute "$250,000".
20 Application of amendments
The amendments made by this Part apply in relation to the 2017-18 income year and later income years.
Part 3 -- Superannuation guarantee charge
Superannuation Guarantee (Administration) Act 1992
21 At the end of section 15
Add:
(5) Despite subsections (3) and (4), the maximum contribution base for a quarter in the 2017-18 year or any later year is the amount worked out using the following formula, if that amount is less than the amount worked out under those subsections:
where:
"charge percentage " is the number specified in subsection 19(2) for the quarter.
"concessional contributions cap " is the concessional contributions cap, within the meaning of the Income Tax Assessment Act 1997 , for the financial year in which the quarter occurs.
(6) Amounts calculated under subsection (5) must be rounded down to the nearest 10 dollar multiple.
