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ATO Interpretative Decision

ATO ID 2004/189 (Withdrawn)

Superannuation

Taxable contributions and exempt pension income
FOI status: may be released
  • This ATO Interpretative Decision is withdrawn from the database because it contains a view in respect of section 283 of the Income Tax Assessment Act 1936 which does not apply after the 2006 - 2007 income year. Despite its withdrawal from the database, this ATO Interpretative Decision continues to be a precedential view in respect of decisions for income years up to, and including, the 2006 - 2007 income year. Note: Please refer to Subdivisions 295-C and 295-F of the Income Tax Assessment Act 1997 for the 2007-2008 and later income years.
    This document has changed over time. View its history.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is a contribution to a superannuation fund exempt from tax under section 283 of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision

No. The contribution is not exempt from tax under section 283 of the ITAA 1936.

Facts

A Self Managed Superannuation Fund (SMSF) received a roll-over from an untaxed superannuation fund.

The SMSF is a complying superannuation fund.

The rollover included a post-June 1983 untaxed element.

The fund is paying a pension and claiming exempt pension income.

Reasons for Decision

Section 283 of the ITAA 1936 provides that the proportion of normal assessable income of a complying superannuation fund, other than:

a)
income that is exempt under section 282B of the ITAA; or
b)
income that is derived from segregated non-current pension assets of the fund,

which is calculated by subsection 283(2) of the ITAA is exempt from tax.

Normal assessable income is defined in subsection 267(1) of the ITAA 1936 as assessable income other than:

a)
special income; or
b)
taxable contributions.

Section 274 of the ITAA 1936 provides that the definition of a taxable contribution includes a specified roll-over amount.

A specified rollover amount is also defined in subsection 267(1) of the ITAA 1936 as:

in relation to an eligible entity...a roll-over of some or all of the untaxed element of the post-June 83 component of an eligible termination payment.

An eligible entity is defined in subsection 267(1) of the ITAA 1936 as:

a fund that is an eligible ADF (Approved Deposit Fund) in relation to the year of income
a fund that is an eligible superannuation fund in relation to the year of income
a unit trust that is a PST (Pooled Superannuation Trust) in relation to the year of income

Subsection 267(1) of the ITAA 1936, further defines an eligible superannuation fund as a fund that is a complying superannuation fund.

The amount rolled over into the SMSF satisfies the definition of a specified roll-over amount. A specified roll-over amount is a taxable contribution. As a result is it excluded from the definition of normal assessable income and is not exempt from tax under section 283 of the ITAA 1936.

Date of decision:  12 February 2004

Year of income:  Year ended 30 June 2003

Legislative References:
Income Tax Assessment Act 1936
   subsection 267(1).
   section 274.
   section 282B
   section 283
   subsection 283(2)

Related ATO Interpretative Decisions
ATO ID 2004/190
ATO ID 2004/191

Keywords
Exempt income of superannuation funds
Part IX taxation of superannuation entities
Segregated current pension assets
Superannuation Business Line
Taxable superannuation contributions

Business Line:  Superannuation

Date of publication:  27 February 2004

ISSN: 1445-2782

history
  Date: Version:
  12 February 2004 Original statement
You are here 19 June 2009 Archived

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