Tax Laws Amendment (Fairer Taxation of Excess Concessional Contributions) Act 2013 (118 of 2013)

Schedule 1   Fairer taxation of excess concessional contributions

Part 7   Application, transitional and saving provisions

Division 1   Application and transitional provisions

Income Tax (Transitional Provisions) Act 1997

111   After Division 290

Insert:

Division 291 - Excess concessional contributions

Table of Subdivisions

291-A Application of Division 291 of the Income Tax Assessment Act 1997

291-C Modifications for defined benefit interests

Subdivision 291-A - Application of Division 291 of the Income Tax Assessment Act 1997

Table of sections

291-10 Application of Division 291 of the Income Tax Assessment Act 1997

291-10 Application of Division 291 of the Income Tax Assessment Act 1997

Division 291 of the Income Tax Assessment Act 1997 applies to the 2013-14 income year and later income years.

Subdivision 291-C - Modifications for defined benefit interests

Table of sections

291-170 Transitional rules for notional taxed contributions

291-170 Transitional rules for notional taxed contributions

(1) This section applies despite section 291-170 of the Income Tax Assessment Act 1997.

Certain interests held on 5 September 2006

(2) Despite subsection 291-170(1) of the Income Tax Assessment Act 1997, your notional taxed contributions for the financial year in respect of a defined benefit interest are equal to your concessional contributions cap for the financial year if:

(a) Subdivision 291-C of that Act applies in relation to you because you have a defined benefit interest in a financial year; and

(b) disregarding this subsection and subsection (4), the notional taxed contributions for the financial year in respect of the defined benefit interest exceed your concessional contributions cap for the financial year; and

(c) either:

(i) you held the defined benefit interest in a superannuation fund on 5 September 2006; or

(ii) all the requirements in subsection (3) are satisfied; and

(d) the conditions (if any) specified in the regulations are satisfied.

(3) For the purposes of subparagraph (2)(c)(ii), the requirements are as follows:

(a) you held a defined benefit interest (the original interest ) in a superannuation fund (the original fund ) on 5 September 2006;

(b) the defined benefit interest mentioned in paragraph (2)(a) (the current interest ) is in a different superannuation fund (the current fund );

(c) the entire value of the original interest:

(i) was transferred directly to the current interest after 5 September 2006; or

(ii) was transferred to another superannuation interest after 5 September 2006, and was later transferred to the current interest (whether directly or through a series of transfers between superannuation interests);

(d) your rights to accrue future benefits under the current interest are equivalent to your rights to accrue future benefits under the original interest;

(e) either:

(i) the notional taxed contributions mentioned in paragraph (2)(b) do not exceed what they would have been if the transfer mentioned in paragraph (c) had not taken place; or

(ii) the conditions (if any) specified in the regulations are satisfied;

(f) the conditions (if any) specified in the regulations are satisfied.

Certain interests held on 12 May 2009

(4) Despite subsection 291-170(1) of the Income Tax Assessment Act 1997, your notional taxed contributions for the financial year in respect of the defined benefit interest are equal to your concessional contributions cap for the financial year if:

(a) Subdivision 291-C of that Act applies in relation to you because you have a defined benefit interest in a financial year; and

(b) disregarding this subsection, the notional taxed contributions for the financial year in respect of the defined benefit interest exceed your concessional contributions cap for the financial year; and

(c) either:

(i) you held the defined benefit interest in a superannuation fund on 12 May 2009; or

(ii) all the requirements in subsection (5) are satisfied; and

(d) the conditions (if any) specified in the regulations are satisfied; and

(e) the financial year is the 2009-2010 financial year or a later financial year.

(5) For the purposes of subparagraph (4)(c)(ii), the requirements are as follows:

(a) you held a defined benefit interest (the original interest ) in a superannuation fund (the original fund ) on 12 May 2009;

(b) the defined benefit interest mentioned in paragraph (4)(a) (the current interest ) is in a different superannuation fund (the current fund );

(c) the entire value of the original interest:

(i) was transferred directly to the current interest after 12 May 2009; or

(ii) was transferred to another superannuation interest after 12 May 2009, and was later transferred to the current interest (whether directly or through a series of transfers between superannuation interests);

(d) your rights to accrue future benefits under the current interest are equivalent to your rights to accrue future benefits under the original interest;

(e) either:

(i) the notional taxed contributions mentioned in paragraph (4)(b) do not exceed what they would have been if the transfer mentioned in paragraph (c) had not taken place; or

(ii) the conditions (if any) specified in the regulations are satisfied;

(f) the conditions (if any) specified in the regulations are satisfied.