• Solutions

    Answer 1

    True

    The ‘Sustaining the super contribution concession measure’ will improve the fairness of the tax system. It will do so by ensuring the tax concession received by people earning more than $300,000 is more closely aligned with the concession received by average income earners.

    Exercise 1

    Answer 2

    The correct answers are (a) and (c).

    A contribution is covered by section 293-30 for an income year if it is:

    • made to a complying super fund in respect of a person, and
    • included in the assessable income of the fund, (or successor fund in the course of a rollover benefit).

    In relation to low-tax contributed amounts, a contribution is covered by section 293-30 for an income year if it is made to a complying super fund in respect of a person and included in the assessable income of the fund, or successor fund in the case of a rollover super benefit.

    Other specific contribution types are able to be considered under section 293-30.

    Exercise 2

    Answer 3

    True

    In working out the low-tax contributions, the amount of RECC is subtracted from the low contributions tax amount.

    Exercise 3

    Answer 4

    The correct answers are (a) (d) and (e).

    When a person only has accumulation interests, the amount of low-tax contributions for an income year are calculated as:

    • low-tax contributed amounts for the income year

    minus

    • excess concessional contributions for the income year (if any).

    The following would modify this calculation:

    • defined benefit interests
    • Commonwealth justices and judges
    • constitutionally protected State higher level office holders.

    Exercise 4

    Answer 5

    False

    The special rules only apply to justices and judges that have defined benefit interests in a super fund established under the Judges Pension Act 1968.

    Exercise 5

    Answer 6

    The correct answers are (c) and (d).

    The following excess concessional contribution amounts are included in a person’s low-tax contributions:

    • concessional contributions disregarded for the purposes of ECT by the Commissioner’s discretion
    • concessional contributions allocated to another year for the purposes of ECT under the Commissioner’s discretion.

    Exercise 6

    Answer 7

    The correct answers are (b) (c) and (d).

    The following excess concessional contribution amounts are included in a person’s $300,000 threshold:

    • excess concessional contributions that have been refunded
    • concessional contributions disregarded for the purposes of ECT by the Commissioner’s discretion
    • concessional contributions allocated to another year for the purposes of ECT under the Commissioner’s discretion.

    Exercise 7

    Answer 8

    The correct answers are (a) and (e).

    To make an assessment for Division 293 tax, the Commissioner requires:

    • an MCS and/or SAR
    • a person’s income tax return.

    Exercise 8

    Answer 9

    The correct answer is (c).

    Assessed Division 293 tax is due and payable 21 days after the Commissioner gives a notice of assessment (or amended assessment).

    Exercise 9

    Answer 10

    False

    If a person’s low-tax contributions for an income year include contributions to accumulation and defined benefit interests, special rules are required to assign the tax between the super interests.

    The appropriate amount of tax must be attributable to the accumulation interest, and only the remaining amount of tax is determined to be deferred to a tax debt.

    Exercise 10

    Answer 11

    True

    Defined benefit tax needs to be attributed to each defined benefit interest because a separate debt account is maintained for each defined benefit interest and may be due and payable at different times.

    Exercise 11

    Answer 12

    The correct answers are (a) (c) and (e).

    The Commissioner will credit a person’s debt account in the following situations:

    • Voluntary payment made by the person to reduce the debt.
    • Remission of interest.
    • Determination by the Commissioner that an amount is a deferral reversal.

    Exercise 12

    Answer 13

    The correct answer is (c).

    The end benefit cap of employer-financed component of the value of the super interest accrued after 1 July 2012 is 15%.

    Exercise 13

    Answer 14

    The correct answer is (d).

    The release authority issued by the Commissioner must contain:

    • the date
    • the amount of the release entitlement
    • any other information the Commissioner thinks is relevant.

    Exercise 14

    Answer 15

    False

    A person can choose to withdraw the amount from their super interest (only if it’s not a defined benefit interest) or they can pay all or part of the amount from non-super monies, including from their after-tax income.

    Exercise 15

    Answer 16

    The correct answer is (e).

    The super provider has 30 days to release the amount once they have received the release authority.

    Exercise 16

    Answer 17

    True

    A person is able to make voluntary payments to reduce the balance of their debt account

    Exercise 17

    Answer 18

    False

    A person has the option to choose how they pay their debt discharge liability, which can be either: monies from their defined benefit super interest to which the debt relates with a release authority from the Commissioner; from other sources, such as after-tax income; or a combination of both.

    Exercise 18

      Last modified: 15 May 2015QC 43294