S 295-173 amended by No 64 of 2020, s 3 and Sch 3 item 100, by substituting
"
*
complying superannuation entity
"
for
"
*
complying superannuation fund, a
*
complying approved deposit fund or a
*
pooled superannuation trust
"
in para (a), effective 1 July 2020.
S 295-173 substituted by No 53 of 2016, s 3 and Sch 5 item 2, applicable to assessments for income years starting on or after 1 July 2016. No 53 of 2016 (as amended by No 15 of 2019), s 3 and Sch 5 Pt 4 contains the following transitional provision:
Part 4
-
Transitional
75 Transitional rule for 20
%
tracing requirement and repeal of Division 6B
-
imputation
(1)
This item applies if at a time (the
cessation time
), on or after the commencement of this Schedule, either:
(a)
section
102K
of the
Income Tax Assessment Act 1936
ceases to apply to the trustee of a trust because of the repeal of that section by Part 2 of this Schedule; or
(b)
section
102S
of that Act ceases to apply to the trustee of a trust because of the amendment made by Part 1 of this Schedule.
(2)
Subitems (3) and (3A) apply if:
(a)
an event happens in respect of the trust that is described in:
(i)
the table in subsection
205-15(1)
of the
Income Tax Assessment Act 1997
; or
(ii)
the table in subsection
205-30(1)
of that Act; and
(b)
the event happens on or after the cessation time but before 1 July 2019; and
(c)
the event is:
(i)
the trust paying income tax for an income year starting before 1 July 2016; or
(ii)
the trust paying a PAYG instalment in respect of income tax for an income year starting before 1 July 2016; or
(iii)
the trust receiving a refund of income tax for an income year starting before 1 July 2016; or
(iv)
the trust franking a distribution; or
(v)
the trust ceasing to be a franking entity.
History
S 75(2) amended by No 15 of 2019, s 3 and Sch 1 items 34
-
36, by substituting
"
Subitems (3) and (3A) apply
"
for
"
Subitem (3) applies
"
,
"
1 July 2019
"
for
"
1 July 2018
"
in para (b) and inserting para (c)(v), effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(2A)
However, subparagraph (2)(c)(v) does not apply unless the trust
'
s franking account is in surplus immediately before the trust ceases to be a franking entity.
History
S 75(2A) inserted by No 15 of 2019, s 3 and Sch 1 item 37, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(3)
For the purposes of determining whether a franking credit or franking debit arises in the trust
'
s franking account as a result of the event:
(a)
treat the trust as a corporate tax entity at the time the event happens; and
(b)
treat the trust as satisfying the residency requirement in section
205-25
of the
Income Tax Assessment Act 1997
for the income year in which the event happens.
(3A)
If the event is an event described in item 4 of the table in subsection
205-30(1)
of the
Income Tax Assessment Act 1997
, treat the event as happening on 1 July 2019.
History
S 75(3A) inserted by No 15 of 2019, s 3 and Sch 1 item 38, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(4)
Subitems (5) and (6) apply if:
(a)
the trust makes a distribution on or after the cessation time but before 1 July 2019; and
(b)
the trust
'
s franking account is in surplus just before the trust makes the distribution; and
(c)
the distribution is not made out of income derived in relation to the 2016-17 income year or a later income year.
History
S 75(4) amended by No 15 of 2019, s 3 and Sch 1 items 39
-
41, by substituting
"
Subitems (5) and (6) apply
"
for
"
Subitem (5) applies
"
,
"
1 July 2019
"
for
"
1 July 2018
"
in para (a) and inserting para (c), effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(5)
For the purposes of determining whether the trust franks the distribution as a result of the event:
(a)
treat the trust as a corporate tax entity at the time it makes the distribution; and
(b)
treat the trust as satisfying the residency requirement in section
202-20
of the
Income Tax Assessment Act 1997
at the time it makes the distribution.
(6)
Treat a beneficiary of the trust who receives the distribution as receiving, for the purposes of the income tax law, a dividend from a corporate tax entity.
History
S 75(6) inserted by No 15 of 2019, s 3 and Sch 1 item 42, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
Note:
As a result, the trust will satisfy the requirement in paragraph
202-5(a)
of that Act in respect of the distribution. If the other requirements in section
202-5
of that Act are satisfied in respect of the distribution, this means that the trust franks the distribution.
S 295-173 formerly read:
SECTION 295-173 Exception
-
trustee contributions
295-173
Item 1 of the table in section 295-160 does not include in assessable income a contribution made by an entity that, when the contribution was made, was:
(a)
the trustee of a
*
complying superannuation fund, a
*
complying approved deposit fund or a
*
pooled superannuation trust; or
(b)
covered by section 102MD of the
Income Tax Assessment Act 1936
because of paragraph (a) of that section (trustees etc. of exempt life assurance funds).
S 295-173 amended by
No 75 of 2010
, s 3 and Sch 5 item 9, by substituting para (b), effective 28 June 2010. Para (b) formerly read:
(b)
the trustee of an exempt life assurance fund (within the meaning of Division 6C of Part III of the
Income Tax Assessment Act 1936
).
S 295-173 inserted by No 15 of 2007, s 3 and Sch 1 item 215, applicable to the 2007-2008 income year and later years.
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