Income Tax Assessment Act 1997



Division 295 - Taxation of superannuation entities  

Subdivision 295-H - Components of taxable income  

SECTION 295-555   Components of taxable income - RSA providers  


The taxable income of an *RSA provider is split into:

(a) an *RSA component; and

(b) (Repealed by No 70 of 2015)

(c) a *standard component.


The RSA component is taxed at the same concessional rate that applies to the low tax component of complying superannuation entities (see section 23 of the Income Tax Rates Act 1986 ). The standard component is taxed at the standard company rate.

The RSA component for an income year is worked out in this way: Method statement

Step 1.

Add these amounts included in the provider ' s assessable income for the income year:

  • (a) amounts included under Subdivision 295-C ; and
  • (b) other amounts credited during the year to *RSAs that it provides.

  • Step 2.

    Subtract from the step 1 amount amounts paid from those *RSAs (except benefits for the RSA holders or tax).

    Step 3.

    The result is the RSA component .


    However, if the *RSA component is more than the *RSA provider ' s taxable income:

    (a) the provider ' s taxable income is equal to that sum; and

    (b) this Act applies to the provider as if it had a *tax loss for the income year of an amount that would have been that loss if the RSA component were not *ordinary income or *statutory income.


    The standard component is the remaining part (if any) of the *RSA provider ' s taxable income for the income year after subtracting the *RSA component.


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