Income Tax Assessment Regulations 1997
For subparagraph 292-170(7)(e)(ii) of the Act, this regulation:
(a) applies in relation to a superannuation fund in relation to which subregulation 292-170.02(2) applies, or is taken to apply; and
(b) sets out the conditions that are to be satisfied in relation to establishing whether notional taxed contributions for a financial year in respect of a defined benefit interest are equal to the concessional contributions cap for the financial year.
Subsection 292-170(7) of the Act explains when a member ' s notional taxed contributions for the financial year in respect of a defined benefit interest that has been transferred to another fund are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.
A condition is that between 5 September 2006 and the time at which the new entrant rate for the defined benefit member is worked out using Schedule 1A :
(a) the rules of the superannuation fund have not changed to improve the member ' s benefit; and
(i) the member has not moved to a new benefit category; or
(ii) if the member has moved to a new benefit category, the new benefit category does not provide the member with an improved level of benefit.
A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A :
(a) has not increased since it was first worked out using Schedule 1A ; or
(b) has increased since it was first worked out using Schedule 1A only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992 .
A condition is that the method of calculating superannuation salary:
(a) has not been changed, in a way that would increase the salary, since 5 September 2006; or
(b) has changed since 5 September 2006 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992 .
If the rate of superannuation salary has increased, since 5 September 2006, by:
(a) more than 50% in 1 year; or
(b) more than 75% over 3 years;
a condition is that the employer-sponsor advises the trustee that the increase in the rate is on an arm ' s length basis.
A condition is that the trustee or employer-sponsor of the superannuation fund has not exercised a discretion to pay a benefit that is greater than the benefit that was assumed for the purpose of calculating the new entrant rate since 5 September 2006. 292-170.06(7)
For subregulation (5), a trustee must notify the Commissioner, in writing, of an increase in the rate of superannuation salary that exceeds the rate specified in paragraph (5)(a) or (b) as soon as practicable after the increase occurs.
(a) a condition mentioned in paragraph (2)(b) or subregulation (3) is not satisfied; and
(b) the condition was not satisfied only because:
(i) the defined benefit member moved to a new benefit category; and
(ii) the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and
(iii) the member had no control over the application of the rules or legislation;
the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied.
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