Commonwealth Consolidated Acts

TAXATION LAWS AMENDMENT ACT (NO. 5) 2003 - SCHEDULE 6

Part   1 -- Main amendments

Income Tax Rates Act 1986

1   Subsection 3(1)

Insert:

"ETP" has the meaning given by subsection 27A(1) of the Assessment Act.

2   Subsection 3(1)

Insert:

"post-June 83 component" of an ETP has the meaning given by section   27AA of the Assessment Act.

3   Subsection 3(1)

Insert:

"retained amount" of the post - June 83 component of an ETP has the meaning given by section   27AC of the Assessment Act.

4   Subsection 3(1)

Insert:

"taxed element" of the retained amount of the post - June 83 component of an ETP has the meaning given by section   27AC of the Assessment Act.

5   Paragraph 1(a) of Part   I of Schedule   7

Repeal the paragraph, substitute:

  (a)   38% for the amount (if any) of the EC part of the taxable income that does not exceed the difference between:

  (i)   the amount that would have been the taxed element of the retained amount of the post - June 83 component of the ETP if the amount of the excessive component of the ETP had been nil; and

  (ii)   the taxed element of the retained amount of the post - June 83 component of the ETP;

    worked out disregarding section   27AAA of the Assessment Act;

  (aa)   47% for the remainder (if any) of the EC part of the taxable income;

6   Paragraph 1(a) of Part   II of Schedule   7

Repeal the paragraph, substitute:

  (a)   38% for the amount (if any) of the EC part of the taxable income that does not exceed the difference between:

  (i)   the amount that would have been the taxed element of the retained amount of the post - June 83 component of the ETP if the amount of the excessive component of the ETP had been nil; and

  (ii)   the taxed element of the retained amount of the post - June 83 component of the ETP;

    worked out disregarding section   27AAA of the Assessment Act;

  (aa)   47% for the remainder (if any) of the EC part of the taxable income;

7   Paragraph 1(a) of Part   I of Schedule   9

Repeal the paragraph, substitute:

  (a)   38% for the amount (if any) of the EC part of the taxable income that does not exceed the difference between:

  (i)   the amount that would have been the taxed element of the retained amount of the post - June 83 component of the ETP if the amount of the excessive component of the ETP had been nil; and

  (ii)   the taxed element of the retained amount of the post - June 83 component of the ETP;

    worked out disregarding section   27AAA of the Assessment Act;

  (aa)   47% for the remainder (if any) of the EC part of the taxable income;

8   Paragraph 1(a) of Part   II of Schedule   9

Repeal the paragraph, substitute:

  (a)   38% for the amount (if any) of the EC part of the taxable income that does not exceed the difference between:

  (i)   the amount that would have been the taxed element of the retained amount of the post - June 83 component of the ETP if the amount of the excessive component of the ETP had been nil; and

  (ii)   the taxed element of the retained amount of the post - June 83 component of the ETP;

    worked out disregarding section   27AAA of the Assessment Act;

  (aa)   47% for the remainder (if any) of the EC part of the taxable income;

Superannuation Contributions Tax (Assessment and Collection) Act 1997

9   Paragraph 7A(3)(d)

After "year", insert ", worked out ignoring subsection 8(8) of this Act and subsection 9(9) of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 ".

10   Paragraph 7B(3)(e)

After "year", insert ", worked out ignoring subsection 8(8) of this Act and subsection 9(9) of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 ,".

11   At the end of section   8

Add:

Reduced surchargeable contributions

  (8)   The amount of the surchargeable contributions of a member for a financial year is the amount worked out under subsection   (2) or (3) (as appropriate), reduced by the amount worked out under subsection   (9), if:

  (a)   an eligible termination payment is made to the member in the financial year from the superannuation fund, approved deposit fund or RSA; and

  (b)   the eligible termination payment has an excessive component.

  (9)   The amount of the reduction is worked out as follows:

12   Section   43

Insert:

"excessive component" of an eligible termination payment has the meaning given by subsection 27A(1) of the Income Tax Assessment Act.

13   Section   43

Insert:

"post-June 83 component" of an eligible termination payment has the meaning given by section   27AA of the Income Tax Assessment Act.

14   Section   43

Insert:

"retained amount" of the post - June 83 component of an eligible termination payment has the meaning given by section   27AC of the Income Tax Assessment Act.

15   Section   43

Insert:

"taxed element" of the retained amount of the post - June 83 component of an eligible termination payment has the meaning given by section   27AC of the Income Tax Assessment Act.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

16   At the end of section   9

Add:

Reduced surchargeable contributions

  (9)   The amount of the surchargeable contributions of a member for a financial year is the amount worked out under subsection   (2) or (4) (as appropriate), reduced by the amount worked out under subsection   (10), if:

  (a)   an eligible termination payment is made to the member in the financial year from the constitutionally protected superannuation fund; and

  (b)   the eligible termination payment has an excessive component.

  (10)   The amount of the reduction is worked out as follows:

17   Section   38

Insert:

"excessive component" of an eligible termination payment has the meaning given by subsection 27A(1) of the Income Tax Assessment Act.

18   Section   38

Insert:

"post-June 83 component" of an eligible termination payment has the meaning given by section   27AA of the Income Tax Assessment Act.

19   Section   38

Insert:

"retained amount" of the post - June 83 component of an eligible termination payment has the meaning given by section   27AC of the Income Tax Assessment Act.

20   Section   38

Insert:

"taxed element" of the retained amount of the post - June 83 component of an eligible termination payment has the meaning given by section   27AC of the Income Tax Assessment Act.

21   Application

The amendments made by this Part apply to eligible termination payments (as defined in section   27A of the Income Tax Assessment Act 1936 ) made on or after 1   July 2002.

Part   2 -- Technical correction

Income Tax Rates Act 1986

22   Subsection 3(1) (definition of EC part of the taxable income )

After "27B(3)", insert "of the Assessment Act".

23   Application

The amendment made by this Part applies to assessments for the 1994 - 95 year of income and later years of income.