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

Schedule 3   AMENDMENTS RELATING TO SUPERANNUATION

Part 2   INCOME TAX ASSESSMENT ACT 1936

Division 12   Lump sum payments from certain non-resident superannuation funds

76   After section 27C

Insert:

Assessable income to include component of lump sum payment from an eligible non-resident non-complying superannuation fund

"27CAA. (1) If:

(a) a payment (the 'relevant payment') of a lump sum (including a payment made as a result of the commutation of a superannuation pension or of an annuity but not including an 'exempt resident foreign termination payment' or an 'exempt non-resident foreign termination payment') is made from a fund that is an eligible non-resident non-complying superannuation fund in relation to a taxpayer when the relevant payment is made; and

(b) had the fund been a superannuation fund, the relevant payment would, apart from paragraph (ma) of the definition of 'eligible termination payment' in subsection 27A(1), have been an eligible termination payment; and

(c) the amount (the 'gross amount') that was properly payable on the day on which the relevant payment was made before any deduction was made from that amount exceeds the amount worked out using the formula:

Accumulated entitlement plus Additional contributions;

then the taxpayer's assessable income of the year of income in which the relevant payment is made includes the amount of the excess.

"(2) For the purposes of the formula in subsection (1):

'Accumulated entitlement' means the amount properly payable to the taxpayer out of the fund on the day immediately before the relevant day;

'Additional contributions' means so much (if any) of the gross amount as represented contributions paid by the taxpayer, or an employer of the taxpayer, on or after the relevant day;

'relevant day' means the day on which the taxpayer became a member of the fund or the first day during the period to which the relevant payment relates on which the taxpayer became a resident of Australia, whichever is the later.

"(3) Subsection 27A(3) applies for the purposes of this section in a corresponding way to the way in which it applies for the purposes of the definition of "eligible termination payment" in subsection 27A(1).".