Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 295 - Taxation of superannuation entities  

Subdivision 295-D - Contributions excluded  

SECTION 295-260   Transfer of liability to investment vehicle  

295-260(1)  
The *superannuation provider in relation to a *complying superannuation fund or a *complying approved deposit fund (the transferor ) may reduce the amount that would otherwise be included in the fund ' s assessable income for an income year under Subdivision 295-C by agreement with another entity (the transferee ) in which it holds investments. What the transferee must be

295-260(2)  
The transferee must be a *life insurance company or a *pooled superannuation trust.

Note:

Amounts transferred are included in the transferee ' s assessable income: see section 295-320 (for PSTs) and paragraph 320-15(1)(i) (for life insurance companies).

Agreement requirements

295-260(3)  
The transferor may make one agreement only for an income year with a particular transferee.

295-260(4)  
An agreement:


(a) must be in writing, and must be signed by or for the transferor and transferee; and


(b) must be made by the day the transferor lodges its *income tax return for its income year to which the agreement relates; and


(c) cannot be revoked. Limits on transfer

295-260(5)  
The total amount covered by the agreements cannot exceed the amount that would otherwise be included in the transferor ' s assessable income under Subdivision 295-C for that income year.

295-260(6)  
The amount covered by an agreement with a particular transferee cannot exceed this amount:


        Greatest equity value        
Transferor ' s low tax component tax rate

where:

greatest equity value
is the greatest of these amounts during the transferor ' s income year:


(a) if the transferee is a *pooled superannuation trust - the *market value of the transferor ' s investment in units in the trust;


(b) if not - the market value of the transferor ' s investment in:


(i) *life insurance policies issued by the transferee; or

(ii) a trust whose assets consist only of life insurance policies issued by the transferee.

transferor ' s low tax component tax rate
is the rate of tax imposed on the *low tax component of the fund ' s taxable income for the income year.


 

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.