Superannuation Legislation Amendment (Simplification) Act 2007 (15 of 2007)

Schedule 2   Small business relief for CGT events

Income Tax Assessment Act 1997

8   Subsections 152-325(7) and (8)

Repeal the subsections, substitute:

(7) If a *CGT concession stakeholder is under 55 just before a payment is made under this section in relation to him or her:

(a) the company or trust must make the payment to the CGT concession stakeholder by contributing it for the stakeholder to a *complying superannuation fund or an *RSA in respect of the stakeholder; and

(b) the company or trust must notify the trustee of the fund or the *RSA provider at the time the contribution is made that the contribution is made in accordance with this section.

Note: For the non-deductibility of the contribution, see subsection 290-150(4).

(8) For the purposes of Part 3-30, treat a payment mentioned in paragraph (7)(a), made in accordance with this section, as a contribution made by the *CGT concession stakeholder.

(9) If:

(a) a payment is made to a *CGT concession stakeholder in accordance with this section (disregarding section 109 of the Income Tax Assessment Act 1936); and

(b) the stakeholder is an employee of the company or trust;

treat the payment, for the purposes of section 109 of that Act, as made in consequence of the termination of employment of the stakeholder.