INCOME TAX ASSESSMENT REGULATIONS 1997

PART 2A - SPECIALIST LIABILITY RULES  

Division 292 - Excess contributions tax  

Subdivision 292-B - Excess concessional contributions tax  

REGULATION 292-25.01   CONCESSIONAL CONTRIBUTIONS FOR A FINANCIAL YEAR  

292-25.01(1)  
For subsection 292-25(3) of the Act, this regulation sets out conditions for the purpose of allocating an amount in a complying superannuation plan.

292-25.01(2)  


Subject to subregulation (3), an amount that is:


(a) allocated under Division 7.2 of the SIS Regulations; and


(b) an assessable contribution under Subdivision 295-C of the Act;

is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 292-25(3) of the Act.

292-25.01(3)  
Each of the following amounts is to be treated as not having been allocated by the superannuation provider in a way that is covered by subsection 292-25(3) of the Act, even if subregulation (2) would also apply to the amount:


(a) an amount mentioned in item 2 of the table in subsection 295-190(1) of the Act;


(b) an amount mentioned in subsection 295-200(2) of the Act;


(c) a contribution made to a constitutionally protected fund.

292-25.01(4)  


An amount that is allocated from a reserve, other than an amount that is covered by subregulation (2), is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 292-25(3) of the Act:


(a) unless:


(i) the amount is allocated, in a fair and reasonable manner:

(A) to an account for every member of the complying superannuation plan; or

(B) if the member is a member of a class of members of the complying superannuation plan, and the amount in the reserve relates only to that class of members - to an account for every member of the class; and

(ii) the amount that is allocated for the financial year is less than 5% of the value of the member's interest in the complying superannuation plan at the time of allocation; or


(b) unless:


(i) the amount is allocated from a reserve used solely for the purpose of enabling the fund to discharge all or part of its liabilities (contingent or not), as soon as they become due, in respect of superannuation income stream benefits that are payable by the fund at that time; and

(ii) any of the following applies:

(A) the amount has been allocated to satisfy a pension liability of the plan paid during the financial year;

(B) on the commutation of the income stream, except as a result of the death of the primary beneficiary, the amount is allocated to the recipient of the income stream, to commence another income stream, as soon as practicable;

(C) on the commutation of the income stream as a result of the death of the primary beneficiary, the amount:

(I) is allocated to a death benefits dependant to discharge liabilities in respect of a superannuation income stream benefit that is payable by the plan as a result of the death; or

(II) if sub-sub-subparagraph (I) does not apply - is paid as a superannuation lump sum and as a superannuation death benefit;
as soon as practicable.

292-25.01(5)  


Paragraph (4)(a) does not apply to an amount that:


(a) is required to be allocated under subregulation (2); or


(b) would be assessable income of the plan if it were made as a contribution.

292-25.01(6)  
If the amount has been allocated from a reserve in lieu of a contribution to the fund (less any allowance for tax) which would have been assessable income of the fund, the amount that is allocated is to be multiplied by 1.176.

Example

An employer has an obligation to make a $1 000 contribution. Instead of the employer making a contribution to the fund, the trustee allocates $850 to the member's account (which is an amount equivalent to the amount that would be credited to the account after tax was paid).

For subregulation (6), the amount of $850 is to be multiplied by 1.176 to work out the amount that is taken to be allocated.




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