Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer,the Hon Ralph Willis, MP)
Chapter 3 - Amendment 12 - Superannuation and determination of life expectation factor
3.1 Amendment 12 applies to Part 4 of Schedule 3 of the Bill.
3.2 Item 31 of the Bill proposes that the deductible amount of a life time superannuation pension or annuity is to be calculated based on the taxpayer's life expectancy at the beginning of the period in respect of which the pension or annuity is payable.
3.3 This amendment ensures that Item 31 applies to an annuity where the first day of the period to which the first payment of the annuity relates is on or after 1 April 1995
3.4 The purpose of the amendment is to overcome concerns regarding the retrospective nature of the application provision currently proposed in Item 32.