ATO Interpretative Decision

ATO ID 2004/191

Superannuation

• This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Is the post June 1983 untaxed element of an amount which is rolled over from one superannuation fund to another superannuation fund, a taxable contribution as per section 274 of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision

Yes. A post June 1983 untaxed element of an amount which is rolled over from a superannuation fund to another superannuation fund is a taxable contribution as per section 274 of the ITAA 1936.

Facts

A member rolled over an amount from one superannuation fund to another superannuation fund.

The Self Managed Superannuation Fund is a complying superannuation fund.

The amount included a post-June 1983 untaxed element.

The transferring superannuation fund is an untaxed superannuation fund.

The superannuation fund receiving the amount is a complying superannuation fund.

Reasons for Decision

Subsection 274(1) of the ITAA 1936 states that certain amounts that are paid to an eligible entity (other than a PST [pooled superannuation fund]) or an RSA in a year of income are taxable contributions in relation to the contribution year:

(a)

if the eligible entity is a resident superannuation fund in relation to the year of income in which the contributions were made:

(i)

contributions made for a purpose of making provision for superannuation benefits for another person, other than:

(A)

contributions made by a person that is, when the contributions are made, a trustee of an exempt life assurance fund; or

(B)

contributions made by a person that is, when the contributions are made, a trustee of a complying superannuation fund, a complying superannuation fund, a complying ADF or a PST; or

(C)

eligible spouse contributions within the meaning of section 159T; or

(D)

if that other person is less than 18 years old - contributions made to a complying superannuation fund for the benefit of that other person that are not contributions are made by or on behalf of an employer of that other person

(ii)

a specified roll-over amount

An eligible entity is defined in subsection 267(1) of the ITAA 1936 as:

(a)

a fund that is an eligible ADF in relation to the year of income

(b)

a fund that is an eligible superannuation fund in relation to the year of income

(c)

a unit trust that is a PST in relation to the year of income

An eligible superannuation fund is defined in subsection 267(1) as a fund that is a complying superannuation fund.

Subsection 267(1) of the ITAA 1936 defines a specified roll-over as:

in relation to an eligible entity or RSA provider, means so much of an amount paid to the eligible entity or RSA provider as constitutes a roll-over of some or all of the untaxed element of the post-June 83 component (within the meaning of Subdivision AA of Division 2 of Part III) of an eligible termination payment;

The fund is an eligible complying superannuation fund and hence an eligible entity as defined in subsection 267(1) of the ITAA 1936. The part of the rollover which represents the amount that is the untaxed post-June 1983 element is a specific rollover. Therefore, the post-June 1983 amount that has been rolled into the fund is a taxable contribution.

Year of income:  Year ended 30 June 2003

Legislative References:
Income Tax Assessment Act 1936
   subsection 267(1).
   subsection 274(1).

Related ATO Interpretative Decisions
ATO ID 2004/190
ATO ID 2004/191

Keywords
Part IX taxation of superannuation entities
Superannuation Business Line
Taxable superannuation contributions

Business Line:  Superannuation

Date of publication:  27 February 2004

ISSN: 1445-2782