Income Tax Assessment Act 1936


Division 57 - Tax exempt entities that become taxable  

Subdivision 57-F - Superannuation deductions  



This section applies to a deduction allowable apart from this Subdivision to the transition taxpayer under section 290-60 of the Income Tax Assessment Act 1997 for a contribution made to a fund in relation to a person if:

(a) the person was an employee of the transition taxpayer at any time before or after the transition time; and

(b) the contribution was made under a defined benefit superannuation scheme (within the meaning of section 6A of the Superannuation Guarantee (Administration) Act 1992 ).

57-40(2)   Deduction allowable only if sum of all deductions exceeds defined benefit threshold amount.  

The deduction is not allowable for a year of income if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the defined benefit threshold amount (see subsection (4)) for the year of income.

57-40(3)   Amount of deduction not allowable.  

If the sum is greater than that amount, so much of the deduction as is worked out using the following formula is not allowable:

                            Amount of deduction                            
Sum of all deductions of the transition
taxpayer to which this section applies  
for the year of income                              
  Defined benefit threshold
amount for the year of income

57-40(4)   Meaning of defined benefit threshold amount .  

The defined benefit threshold amount for a year of income is:

(a) if the year of income is the transition year - the unfunded liability amount (see subsection (5)); or

(b) in any other case - that amount as reduced by the total amount of deductions to which this section applies, that, because of subsection (2) or (3), have not (disregarding section 57-55 ) been allowable to the transition taxpayer for all previous years of income.

57-40(5)   Meaning of unfunded liability amount .  

The unfunded liability amount is the value, worked out as at the transition time in accordance with actuarial principles, of the liabilities of the transition taxpayer to provide superannuation benefits for, or for dependants of, employees of the transition taxpayer, where the liabilities:

(a) had accrued as at the transition time; and

(b) were, according to actuarial principles, unfunded at that time; and

(c) were liabilities only under defined benefit superannuation schemes.


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.