Commonwealth Consolidated Acts

TAXATION LAWS AMENDMENT ACT (NO. 4) 2003 - SCHEDULE 1

Income Tax Assessment Act 1936

1   Subsection 27A(1) (paragraph   (c) of the definition of eligible service period )

Omit "(e)", substitute "(daa), (e), (ea)".

2   Subsection 27A(1) (paragraph   (d) of the definition of eligible service period )

Omit "(h)", substitute "(gaa), (h), (ha)".

3   Subsection 27A(1) (after paragraph   (d) of the definition of eligible termination payment )

Insert:

  (daa)   an amount resulting from the commutation in whole or in part of a superannuation pension payable to the taxpayer from a superannuation fund, being an amount:

  (i)   that remains in the fund after the commutation, for the purpose of providing superannuation benefits to the taxpayer or to dependants of the taxpayer in the event of the death of the taxpayer; or

  (ii)   that is applied, immediately after the commutation, towards the provision of one or more other superannuation pensions payable to the taxpayer from that fund;

4   Subsection 27A(1) (after paragraph   (e) of the definition of eligible termination payment )

Insert:

  (ea)   the residual capital value of a superannuation pension payable to the taxpayer from a superannuation fund:

  (i)   that remains in the fund, after the residual capital value of the pension became payable, for the purpose of the provision of superannuation benefits to the taxpayer or to dependants of the taxpayer in the event of the death of the taxpayer; or

  (ii)   that is applied, immediately after the residual capital value of the pension became payable, towards the provision of one or more other superannuation pensions payable to the taxpayer from that fund;

5   Subsection 27A(1) (after paragraph   (g) of the definition of eligible termination payment )

Insert:

  (gaa)   an amount resulting from the commutation in whole or in part of a qualifying annuity (the first annuity ) payable to the taxpayer, being an amount applied, immediately after the commutation, towards the provision of one or more other qualifying annuities payable to the taxpayer by the payer of the first annuity;

6   Subsection 27A(1) (after paragraph   (h) of the definition of eligible termination payment )

Insert:

  (ha)   the residual capital value of a qualifying annuity (the first annuity ) payable to the taxpayer, that is applied, immediately after that residual capital value became payable, towards the provision of one or more other qualifying annuities payable to the taxpayer by the payer of the first annuity;

7   Subsection 27A(1)

Insert:

"internal roll-over amount" , in respect of a taxpayer, means an ETP covered by any of paragraphs   (daa), (ea), (gaa) or (ha) of the definition of eligible termination payment in this subsection.

8   Subsection 27A(1) (paragraph   (a) of the definition of undeducted contributions )

Omit "(e)", substitute "(daa), (e), (ea)".

9   Subsection 27A(1) (paragraph   (c) of the definition of undeducted contributions )

Omit "(h)", substitute "(gaa), (h), (ha)".

10   After subsection 27A(5C)

Insert:

  (6)   If the Commissioner specifies in writing guidelines or principles to be applied in calculating internal roll - over amounts, an internal roll - over amount is to be calculated in accordance with those guidelines or principles.

11   Subsection 27A(12)

After "qualifying eligible termination payment if", insert "it is an internal roll - over amount in relation to the taxpayer or if".

12   Paragraph 27A(13)(a)

After "if", insert "the amount is an internal roll - over amount or if".

13   Subsection 27AAAA(2)

Omit "(e), (f), (g), (h)", substitute "(daa), (e), (ea), (f), (g), (gaa), (h), (ha)".

14   Paragraph 27AAAA(4)(b)

After "payment of", insert ", or represents,".

15   Subsection 27AB(1) (table item   5, column headed "ETP type")

Omit "(h)", substitute "(gaa), (h), (ha)".

16   Subsection 27AB(1) (table item   7, column headed "ETP type")

Omit "(e)", substitute "(daa), (e), (ea)".

17   After subparagraph 27D(1)(b)(i)

Insert:

  and (ia)   details of each internal roll - over amount (in this section referred to as a qualifying roll - over payment ) in relation to the taxpayer; and

18   Application

The amendments made by this Schedule apply to commutations occurring, and residual capital values becoming payable, on or after 1   July 2001.