Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 3   AMENDMENTS RELATING TO SUPERANNUATION

Part 2   INCOME TAX ASSESSMENT ACT 1936

Division 6   Deductions to employers etc. for certain contributions made to non-complying superannuation funds

39   After section 82AAC

Insert:

Deduction for contribution to non-complying superannuation fund that taxpayer reasonably believes to be a complying superannuation fund

"82AAD. (1) If:

(a) a taxpayer pays an amount as a contribution to a non-complying superannuation fund (as defined by subsection 267(1)) for the purpose of making provision for superannuation benefits for an eligible employee; and

(b) when the contribution is made the taxpayer has reasonable grounds for believing that the superannuation fund is a complying superannuation fund;

the amount is taken, for the purposes of section 82AAC, to be paid to a complying superannuation fund.

"(2) Subject to subsection (3), a taxpayer who makes a contribution to a superannuation fund is taken, for the purposes of subsection (1), to have reasonable grounds for believing that the fund is a complying superannuation fund if, at or before the time when the contribution is made, the taxpayer has obtained a written statement, provided by or on behalf of the trustee of the fund, that the fund:

(a) is a resident regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993; and

(b) is not subject to a direction under section 63 of that Act.

"(3) A taxpayer who makes a contribution to a superannuation fund is taken, for the purposes of subsection (1), not to have reasonable grounds for believing that the fund is a complying superannuation fund if, when the contribution is made:

(a) the taxpayer:

(i) is the trustee or the manager of the fund; or

(ii) is an associate (within the meaning of subsection 26AAB(14)) of the trustee or the manager of the fund; and

(b) the taxpayer has reasonable grounds for believing that the fund is not a resident regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 or is operating while in breach of that Act or regulations under that Act.

"(4) Section 39 of the Superannuation Industry (Supervision) Act 1993 applies for the purposes of subsection (3) of this section in a corresponding way to the way in which it applies for the purposes of Division 2 of Part 5 of that Act.

Deduction for contribution to non-complying superannuation fund

"82AAE. A deduction is allowable under this Subdivision in respect of an amount paid by a taxpayer as a contribution to a non-complying superannuation fund (as defined by subsection 267(1)) for the purpose of making provision for superannuation benefits for an eligible employee other than such an employee who is an exempt visitor to Australia for the purposes of section 517 in relation to the year of income in which the amount is paid.".