Income Tax Assessment Act 1997
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View history notePart 3-30 inserted by No 9 of 2007 , s 3 and Sch 1 item 1, applicable to the 2007-2008 income year and later years.
Div 295 inserted by No 9 of 2007 , s 3 and Sch 1 item 1, applicable to the 2007-2008 financial year and later years.
Subdiv 295-C inserted by No 9 of 2007 , s 3 and Sch 1 item 1, applicable to the 2007-2008 financial year and later years.
SECTION 295-173 295-173 Exception - trustee contributions
Item 1 of the table in section 295-160 does not include in assessable income:
(a) a contribution made by an entity that was, when the contribution was made, the trustee of a *complying superannuation entity; or
(b) a contribution made out of the *complying superannuation assets, or out of the *segregated exempt assets, of a *life insurance company.
S 295-173 amended by No 64 of 2020, s 3 and Sch 3 item 100, by substituting " *complying superannuation entity " for " *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation trust " in para (a), effective 1 July 2020.
S 295-173 substituted by No 53 of 2016, s 3 and Sch 5 item 2, applicable to assessments for income years starting on or after 1 July 2016. No 53 of 2016 (as amended by No 15 of 2019), s 3 and Sch 5 Pt 4 contains the following transitional provision:
Part 4 - Transitional
75 Transitional rule for 20% tracing requirement and repeal of Division 6B - imputation
(1)
This item applies if at a time (the cessation time ), on or after the commencement of this Schedule, either:
(a) section 102K of the Income Tax Assessment Act 1936 ceases to apply to the trustee of a trust because of the repeal of that section by Part 2 of this Schedule; or
(b) section 102S of that Act ceases to apply to the trustee of a trust because of the amendment made by Part 1 of this Schedule.
(2)
Subitems (3) and (3A) apply if:
(a) an event happens in respect of the trust that is described in:
(i) the table in subsection 205-15(1) of the Income Tax Assessment Act 1997 ; or
(ii) the table in subsection 205-30(1) of that Act; and
(b) the event happens on or after the cessation time but before 1 July 2019; and
(c) the event is:
(i) the trust paying income tax for an income year starting before 1 July 2016; or
(ii) the trust paying a PAYG instalment in respect of income tax for an income year starting before 1 July 2016; or
(iii) the trust receiving a refund of income tax for an income year starting before 1 July 2016; or
(iv) the trust franking a distribution; or
(v) the trust ceasing to be a franking entity.HistoryS 75(2) amended by No 15 of 2019, s 3 and Sch 1 items 34 - 36, by substituting " Subitems (3) and (3A) apply " for " Subitem (3) applies " , " 1 July 2019 " for " 1 July 2018 " in para (b) and inserting para (c)(v), effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(2A)
However, subparagraph (2)(c)(v) does not apply unless the trust ' s franking account is in surplus immediately before the trust ceases to be a franking entity.HistoryS 75(2A) inserted by No 15 of 2019, s 3 and Sch 1 item 37, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(3)
For the purposes of determining whether a franking credit or franking debit arises in the trust ' s franking account as a result of the event:
(a) treat the trust as a corporate tax entity at the time the event happens; and
(b) treat the trust as satisfying the residency requirement in section 205-25 of the Income Tax Assessment Act 1997 for the income year in which the event happens.
(3A)
If the event is an event described in item 4 of the table in subsection 205-30(1) of the Income Tax Assessment Act 1997 , treat the event as happening on 1 July 2019.HistoryS 75(3A) inserted by No 15 of 2019, s 3 and Sch 1 item 38, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(4)
Subitems (5) and (6) apply if:
(a) the trust makes a distribution on or after the cessation time but before 1 July 2019; and
(b) the trust ' s franking account is in surplus just before the trust makes the distribution; and
(c) the distribution is not made out of income derived in relation to the 2016-17 income year or a later income year.HistoryS 75(4) amended by No 15 of 2019, s 3 and Sch 1 items 39 - 41, by substituting " Subitems (5) and (6) apply " for " Subitem (5) applies " , " 1 July 2019 " for " 1 July 2018 " in para (a) and inserting para (c), effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(5)
For the purposes of determining whether the trust franks the distribution as a result of the event:
(a) treat the trust as a corporate tax entity at the time it makes the distribution; and
(b) treat the trust as satisfying the residency requirement in section 202-20 of the Income Tax Assessment Act 1997 at the time it makes the distribution.
(6)
Treat a beneficiary of the trust who receives the distribution as receiving, for the purposes of the income tax law, a dividend from a corporate tax entity.HistoryS 75(6) inserted by No 15 of 2019, s 3 and Sch 1 item 42, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
Note:
As a result, the trust will satisfy the requirement in paragraph 202-5(a) of that Act in respect of the distribution. If the other requirements in section 202-5 of that Act are satisfied in respect of the distribution, this means that the trust franks the distribution.
S 295-173 formerly read:
SECTION 295-173 Exception
-
trustee contributions
295-173
Item 1 of the table in section 295-160 does not include in assessable income a contribution made by an entity that, when the contribution was made, was:
(a)
the trustee of a *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation trust; or
(b)
covered by section 102MD of the
Income Tax Assessment Act 1936
because of paragraph (a) of that section (trustees etc. of exempt life assurance funds).
S 295-173 amended by No 75 of 2010 , s 3 and Sch 5 item 9, by substituting para (b), effective 28 June 2010. Para (b) formerly read:
(b) the trustee of an exempt life assurance fund (within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936 ).
S 295-173 inserted by No 15 of 2007, s 3 and Sch 1 item 215, applicable to the 2007-2008 income year and later years.
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