PART 2A
-
LOW INCOME SUPERANNUATION TAX OFFSET
History
Pt 2A inserted by No 81 of 2016, s 3 and Sch 4 item 2, effective 2 July 2017.No 81 of 2016, s 3 and Sch 4 item 6 contains the following application provision:
6 Application of amendments
(1)
The amendments made apply to the 2017-18 income year and later income years.
(2)
The following provisions of the
Superannuation (Government Co-contribution for Low Income Earners) Act 2003
apply in relation to a low income superannuation contribution in the same way as they apply in relation to a low income superannuation tax offset:
(a)
sections
24
and
25
;
(b)
any other provision of that Act to the extent that it relates to the provisions mentioned in paragraph (a).
Pt 2A repealed by No 96 of 2014, s 3 and Sch 7 item 2, effective 1 July 2017. For application and transitional provisions, see note under s
5(2)
. Pt 2A formerly read:
PART 2A
-
LOW INCOME SUPERANNUATION CONTRIBUTION
SECTION 12B REFERENCE TO GOVERNMENT CO-CONTRIBUTION INCLUDES REFERENCE TO LOW INCOME SUPERANNUATION CONTRIBUTION
12B(1)
A law of the Commonwealth applies in relation to a low income superannuation contribution in the same way as it applies in relation to a Government co-contribution.
12B(2)
Subsection (1) does not apply to:
(a)
the following provisions:
(i)
Part 2 of this Act (other than section 12);
(ii)
this Part;
(iia)
section 23;
(iii)
section 54 of this Act; and
(b)
any other law of the Commonwealth, to the extent that the other law relates to a provision mentioned in paragraph (a) of this subsection.
History
S 12B(2) amended by No 82 of 2013, s 3 and Sch 2 item 2, by inserting para (a)(iia), applicable to the 2012-13 income year and later income years.
12B(3)
Paragraph 14(1)(a) (Commissioner to have regard to income tax return) does not apply in deciding whether to make a determination under section 13 that a low income superannuation contribution is payable under subsection 12C(2) in respect of a person for an income year.
History
S 12B(3) substituted by No 82 of 2013, s 3 and Sch 2 item 3, applicable to the 2012-13 income year and later income years. S 12B(3) formerly read:
12B(3)
Paragraph 14(1)(a) (Commissioner to have regard to income tax return) does not apply in relation to a determination under section 13 if:
(a)
the determination relates to the payability of a low income superannuation contribution in respect of a person for an income year; and
(b)
the person was not required to lodge an income tax return for the income year.
12B(4)
Subsections 24(3) and (4) have an operation in respect of low income superannuation contributions that is separate to their operation in respect of Government co-contributions.
SECTION 12C PERSON ENTITLED TO LOW INCOME SUPERANNUATION CONTRIBUTION
12C(1)
A low income superannuation contribution is payable under this subsection in respect of a person for an income year of the person if:
(a)
the person
'
s concessional contributions for the financial year that corresponds to the income year are for a financial year starting on or after 1 July 2012; and
(b)
the person
'
s adjusted taxable income for the income year (worked out in accordance with Schedule 3 to the
A New Tax System (Family Assistance) Act 1999
(disregarding clauses 3 and 3A of that Schedule)) does not exceed
$
37,000; and
(c)
the requirement in paragraph 6(1)(b) is satisfied in respect of the person in relation to the income year; and
(d)
the requirement in paragraph 6(1)(f) is satisfied in respect of the person in relation to the income year.
History
S 12C(1) renumbered from s 12C and amended by No 82 of 2013, s 3 and Sch 2 items 4
-
6, by inserting
"
(1)
"
before
"
A low
"
, substituting
"
payable under this subsection
"
for
"
payable under this Act
"
, and substituting para (a), applicable to the 2012-13 income year and later income years. Para (a) formerly read:
(a)
one or more superannuation contributions covered by section 12D are made during the income year by or for the person; and
12C(2)
A low income superannuation contribution is payable under this subsection in respect of a person for an income year of the person if:
(a)
the person
'
s concessional contributions for the financial year that corresponds to the income year are for a financial year starting on or after 1 July 2012; and
(b)
12 months after the end of the income year, the Commissioner reasonably believes there is insufficient information to decide whether to make a determination under section 13 that a low income superannuation contribution is payable under subsection (1) in respect of the person for the income year; and
(c)
the Commissioner estimates that:
(i)
the person
'
s adjusted taxable income for the income year (worked out in accordance with Schedule 3 to the
A New Tax System (Family Assistance) Act 1999
(disregarding clauses 3 and 3A of that Schedule) does not exceed
$
37,000; and
(ii)
10% or more of the person
'
s total income for the income year (disregarding subsections 8(2) and (3)) is attributable to the person engaging in activities covered under subsection 6(2); and
(d)
the requirement in paragraph 6(1)(f) is satisfied in respect of the person in relation to the income year.
History
S 12C(2) inserted by No 82 of 2013, s 3 and Sch 2 item 7, applicable to the 2012-13 income year and later income years.
12C(3)
For the purposes of paragraph (1)(c), disregard the words
"
in which the person makes the contribution
"
in paragraph 6(2)(a).
History
S 12C(3) inserted by No 82 of 2013, s 3 and Sch 2 item 7, applicable to the 2012-13 income year and later income years.
12C(4)
For the purposes of subparagraph (2)(c)(i), treat the person as having total deductions of
$
300 for the income year unless the Commissioner has information to the contrary.
History
S 12C(4) inserted by No 82 of 2013, s 3 and Sch 2 item 7, applicable to the 2012-13 income year and later income years.
12C(5)
For the purposes of subparagraph (2)(c)(ii), disregard the words
"
in the income year in which the person makes the contribution
"
in paragraph 6(2)(a).
History
S 12C(5) inserted by No 82 of 2013, s 3 and Sch 2 item 7, applicable to the 2012-13 income year and later income years.
SECTION 12D
SECTION 12D CONTRIBUTIONS THAT ATTRACT MATCHING LOW INCOME SUPERANNUATION CONTRIBUTION
12D
A contribution made by or for a person is covered by this section if:
(a)
the contribution was or is made on or after 1 July 2012; and
(b)
the contribution is a concessional contribution (within the meaning of the
Income Tax Assessment Act 1997
) for the financial year that corresponds to the income year in which the contribution was or is made; and
(c)
the contribution was or is made for the purpose of providing superannuation benefits for the person (regardless of whether the benefits are payable to the person
'
s dependants if the person dies before or after becoming entitled to receive the benefits).
SECTION 12E AMOUNT OF LOW INCOME SUPERANNUATION CONTRIBUTION
12E(1)
This section applies if a low income superannuation contribution is payable under subsection 12C(1) or (2) in respect of a person for an income year.
History
S 12E(1) amended by No 82 of 2013, s 3 and Sch 2 item 9, by substituting
"
low income superannuation contribution is payable under subsection 12C(1) or (2) in respect of a person for an income year
"
for
"
person is entitled to a low income superannuation contribution for an income year of the person under section 12C
"
, applicable to the 2012-13 income year and later income years.
12E(2)
The amount of the person
'
s low income superannuation contribution for the income year is:
(a)
unless paragraph (b) or (c) applies
-
15% of the total of the person
'
s concessional contributions for the financial year that corresponds to the income year; or
(b)
if the amount worked out under paragraph (a) exceeds
$
500
-
$
500; or
(c)
if the amount worked out under paragraph (a) is less than
$
10
-
$
10.
History
S 12E(2) amended by No 82 of 2013, s 3 and Sch 2 items 10
-
11, by substituting
"
person
'
s concessional contributions for the financial year that corresponds to the income year
"
for
"
superannuation contributions covered by section 12D made by or for the person during the income year
"
in para (a), and substituting para (c), applicable to the 2012-13 income year and later income years. Para (c) formerly read:
(c)
if the amount worked out under paragraph (a) falls short of
$
20
-
nil.
12E(3)
If, apart from this subsection:
(a)
there would be an underpaid amount as mentioned in section 19 in respect of the person
'
s low income superannuation contribution for the income year; and
(b)
the underpaid amount would be less than
$
10;
decrease the amount of that low income superannuation contribution by that underpaid amount.
History
S 12E(3) inserted by No 82 of 2013, s 3 and Sch 2 item 12, applicable to the 2012-13 income year and later income years.
12E(4)
If, apart from this subsection:
(a)
there would be an amount overpaid as mentioned in section 24 in respect of the person
'
s low income superannuation contribution for the income year; and
(b)
the amount overpaid would be less than
$
10;
increase the amount of that low income superannuation contribution by that amount overpaid.
History
S 12E(4) inserted by No 82 of 2013, s 3 and Sch 2 item 12, applicable to the 2012-13 income year and later income years.
SECTION 12F CONSEQUENCES IF ESTIMATES NO LONGER ACCURATE
12F(1)
Treat a low income superannuation contribution as never having been payable under subsection 12C(2) in respect of a person for an income year if:
(a)
the Commissioner obtains information after making the determination under section 13 that the contribution was so payable; and
(b)
the Commissioner decides that, had the Commissioner obtained that information before making the determination, the Commissioner would not have made the determination.
Note:
The contribution will be recoverable under section 24.
12F(2)
The Commissioner must give the person written notice of the Commissioner
'
s decision under paragraph (1)(b).
SECTION 12G REPORTS ON THIS PART
12G(1)
After the end of each quarter the Commissioner must give the Minister a report, for presentation to the Parliament, on the working of this Part during the quarter. The report must include, for the quarter to which the report relates, the prescribed details about beneficiaries of, and amounts of, low income superannuation contributions.
12G(2)
After the end of each financial year the Commissioner must give the Minister a report, for presentation to the Parliament, that:
(a)
is on the working of this Part during the financial year; and
(b)
includes, for the financial year to which the report relates, the prescribed details about beneficiaries of, and amounts of, low income superannuation contributions.
Former Pt 2A inserted by No 23 of 2012, s 3 and Sch 4 item 2, applicable to the 2012-13 income year and later income years.
SECTION 12C
PERSON ENTITLED TO LOW INCOME SUPERANNUATION TAX OFFSET
12C(1)
A low income superannuation tax offset is payable under this subsection in respect of a person for an income year of the person if:
(a)
the person
'
s concessional contributions for the financial year that corresponds to the income year are for a financial year starting on or after 1 July 2017; and
(b)
the person
'
s adjusted taxable income for the income year (worked out in accordance with Schedule
3
to the
A New Tax System (Family Assistance) Act 1999
(disregarding clauses
3
and
3A
of that Schedule)) does not exceed
$
37,000; and
(c)
the requirement in paragraph
6(1)(b)
is satisfied in respect of the person in relation to the income year; and
(d)
the requirement in paragraph
6(1)(f)
is satisfied in respect of the person in relation to the income year.
[
CCH Note:
S 12C(1) will be amended by No 8 of 2026, s 3 and Sch 4 item 1, by substituting
"
the dollar amount mentioned in item 1 of the table for that income year in Part I of Schedule 7 to the
Income Tax Rates Act 1986
"
for
"
$
37,000
"
in para (b), effective 1 July 2027 and applicable to the 2027-28 income year and later income years.]
12C(2)
A low income superannuation tax offset is payable under this subsection in respect of a person for an income year of the person if:
(a)
the person
'
s concessional contributions for the financial year that corresponds to the income year are for a financial year starting on or after 1 July 2017; and
(b)
12 months after the end of the income year, the Commissioner reasonably believes there is insufficient information to decide whether to make a determination under section
13
that a low income superannuation tax offset is payable under subsection
(1)
in respect of the person for the income year; and
(c)
the Commissioner estimates that:
(i)
the person
'
s adjusted taxable income for the income year (worked out in accordance with Schedule
3
to the
A New Tax System (Family Assistance) Act 1999
(disregarding clauses
3
and
3A
of that Schedule)) does not exceed
$
37,000; and
(ii)
10% or more of the person
'
s total income for the income year (disregarding subsections
8(2)
and
(3)
) is attributable to the person engaging in activities covered under subsection
6(2)
; and
(d)
the requirement in paragraph
6(1)(f)
is satisfied in respect of the person in relation to the income year.
[
CCH Note:
S 12C(2) will be amended by No 8 of 2026, s 3 and Sch 4 item 1, by substituting
"
the dollar amount mentioned in item 1 of the table for that income year in Part I of Schedule 7 to the
Income Tax Rates Act 1986
"
for
"
$
37,000
"
in para (c)(i), effective 1 July 2027 and applicable to the 2027-28 income year and later income years.]
12C(3)
For the purposes of paragraph
(1)(c)
, disregard the words
"
in which the person makes the contribution
"
in paragraph
6(2)(a)
.
12C(4)
For the purposes of subparagraph
(2)(c)(i)
, treat the person as having total deductions of
$
300 for the income year unless the Commissioner has information to the contrary.
12C(5)
For the purposes of subparagraph
(2)(c)(ii)
, disregard the words
"
in the income year in which the person makes the contribution
"
in paragraph
6(2)(a)
.
History
S 12C inserted by No 81 of 2016, s 3 and Sch 4 item 2, effective 2 July 2017. For application provision, see note under s
5(2)
.
Former s 12C repealed by No 96 of 2014, s 3 and Sch 7 item 2, effective 1 July 2017. For application and transitional provisions see note under s
5(2)
. See former wording under Pt
2A
heading.
Former s 12C inserted by No 23 of 2012, s 3 and Sch 4 item 2, applicable to the 2012-13 income year and later income years.
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