CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-30
-
SUPERANNUATION
History
Part 3-30 inserted by
No 9 of 2007
, s 3 and Sch 1 item 1, applicable to the 2007-2008 income year and later years.
Division 295
-
Taxation of superannuation entities
History
Div 295 inserted by
No 9 of 2007
, s 3 and Sch 1 item 1, applicable to the 2007-2008 financial year and later years.
Subdivision 295-A
-
Provisions of general operation
History
Subdiv 295-A inserted by
No 9 of 2007
, s 3 and Sch 1 item 1, applicable to the 2007-2008 financial year and later years.
SECTION 295-10
How to work out the tax payable by superannuation entities
295-10(1)
Use this method for *superannuation funds, *approved deposit funds and *pooled superannuation trusts:
Method statement
Step 1.
For a *superannuation fund, work out the *no-TFN contributions income. Apply the applicable rates as set out in the
Income Tax Rates Act 1986
to that income.
Step 2.
Work out the entity
'
s assessable income and deductions taking account of the special rules in this Division. The special rules modify some provisions of this Act. They also include amounts in assessable income, allow deductions and exempt amounts from income tax.
Step 3.
Work out the entity
'
s taxable income as if its trustee:
(a) were an Australian resident (except where paragraph (b) applies); or
(b) for a *non-complying superannuation fund that is a *foreign superannuation fund for the income year
-
were not an Australian resident.
Step 4.
For a *complying superannuation entity, work out the *low tax component and *non-arm
'
s length component of the entity
'
s taxable income.
Step 5.
Apply the applicable rates as set out in the
Income Tax Rates Act 1986
to:
(a) if step 4 applies to the entity
-
the components worked out under that step; or
(b) otherwise
-
the entity
'
s taxable income.
Step 6.
Subtract the entity
'
s *tax offsets from the step 5 amount or, for a *superannuation fund, from the sum of the fund
'
s step 1 and step 5 amounts.
History
S 295-10(1) amended by No 64 of 2020, s 3 and Sch 3 item 94, by substituting steps 4 and 5, effective 1 July 2020. Steps 4 and 5 formerly read:
Step 4.
Work out the *low tax component and *non-arm
'
s length component of the taxable income of a *complying superannuation fund, *complying approved deposit fund or *pooled superannuation trust.
Step 5.
Apply the applicable rates as set out in the
Income Tax Rates Act 1986
to the components, or to the taxable income of a *non-complying superannuation fund or *non-complying approved deposit fund.
295-10(2)
Use this method for *RSA providers:
Method statement
Step 1.
Work out the entity
'
s *no-TFN contributions income. Apply the applicable rates as set out in the
Income Tax Rates Act 1986
to that income.
Step 2.
Work out the entity
'
s assessable income and deductions taking account of the special rules in this Division.
Step 3.
Work out the *RSA component and *standard component of the entity
'
s taxable income.
Step 4.
(Repealed by No 70 of 2015)
Step 5.
Apply the applicable rates as set out in the
Income Tax Rates Act 1986
to the components. The *RSA component is taxed at a concessional rate.
Step 6.
Subtract the entity
'
s *tax offsets from the sum of the entity
'
s step 1 and step 5 amounts.
History
S 295-10(2) amended by No 70 of 2015, s 3 and Sch 1 items 86 and 87, by repealing step 4 and substituting
"
is
"
for
"
and the *FHSA component are
"
in step 5, effective 1 July 2015. Step 4 formerly read:
Step 4.
If the entity is also an *FHSA provider, work out the *FHSA component of the entity
'
s taxable income.
S 295-10(2) substituted by No 45 of 2008, s 3 and Sch 1 item 23, effective 26 June 2008. S 295-10(2) formerly read:
295-10(2)
Use this method for *RSA providers:
Method statement
Step 1.
Work out the entity
'
s *no-TFN contributions income. Apply the applicable rates as set out in the
Income Tax Rates Act 1986
to that income.
Step 2.
Work out the entity
'
s assessable income and deductions taking account of the special rules in this Division.
Step 3.
Work out the *RSA component and *standard component of the entity
'
s taxable income.
Step 4.
Apply the applicable rates as set out in the
Income Tax Rates Act 1986
to the components. The *RSA component is taxed at a concessional rate.
Step 5.
Subtract the entity
'
s *tax offsets from the sum of the entity
'
s step 1 and step 4 amounts.
S 295-10 inserted by
No 9 of 2007
, s 3 and Sch 1 item 1, applicable to the 2007-2008 financial year and later years.
History
S 295-10 inserted by No 9 of 2007.
View history note
Hide history note