Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The taxable income of a * complying superannuation entity is split into a * non - arm's length component and a * low tax component.
Note: A concessional rate applies to the low tax component, while the non - arm's length component is taxed at the highest marginal rate. The rates are set out in the Income Tax Rates Act 1986 .
(2) If an entity is not of a kind referred to in paragraph 295 - 550(8)(a) (about certain small entities), the non - arm's length component for an income year is the entity's * non - arm's length income for that year less any deductions to the extent that they are attributable to that income.
(2A) If the entity is of a kind referred to in paragraph 295 - 550(8)(a) (about certain small entities), the non - arm's length component for an income year is the lesser of:
(a) the sum of:
(i) each amount of the entity's * non - arm's length income under subsection 295 - 550(1), (2), (4) or (5) for that year less any deductions to the extent that they are attributable to that income; and
(ii) each amount of the entity's non - arm's length income under subsection 295 - 550(8) or (9) for that year; and
(b) the entity's taxable income for the income year:
(i) less the contributions that are included in the entity's assessable income under Subdivision 295 - C for the income year; and
(ii) plus any deductions to the extent that they are attributable to those contributions.
(3) The low tax component is any remaining part of the entity's taxable income for the income year.