Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- Excess concessional contributions
Income Tax Assessment Act 1997
1 Subsection 291 - 20(2)
Repeal the subsection, substitute:
(2) Your concessional contributions cap is:
(a) for the 2017 - 2018 financial year--$25,000; or
(b) for the 2018 - 2019 financial year or a later financial year--the amount worked out by indexing annually the amount mentioned in paragraph ( a) .
Note: Subdivision 960 - M shows how to index amounts . However, annual indexation does not necessarily increase the amount of the cap: see section 960 - 285 .
2 Paragraph 291 - 25(2)(c)
Repeal the paragraph, substitute:
(c) it is not an amount mentioned in subsection 295 - 200(2); and
(d) it is not an amount mentioned in item 2 of the table in subsection 295 - 190(1) .
3 Subsection 291 - 25(4)
Repeal the subsection, substitute:
(4) For the purposes of paragraph ( 2)(b), disregard:
(a) table item 5 . 3 in section 50 - 25 (about income tax exemption for constitutionally protected funds); and
(b) Subdivision 295 - D (about excluded contributions) .
4 Section 291 - 160
Omit "(1)" .
5 Subsection 291 - 160(2)
Repeal the subsection .
6 Section 291 - 165
Before "Despite", insert "(1)" .
7 After paragraph 291 - 165(b)
Insert:
; and (c) the amount (if any) by which your * defined benefit contributions for the financial year in respect of the defined benefit interest or interests exceed those notional taxed contributions .
Note: Section 291 - 370 prevents some contributions from causing your concessional contributions for a financial year to exceed the concessional contributions cap .
(2) In working out your * defined benefit contributions for the * financial year for the purposes of paragraph ( 1)(c):
(a) if Subdivision 293 - E applies to you for the income year corresponding to the financial year--disregard subsection 293 - 150(3); and
(b) if Subdivision 293 - F applies to you--disregard subsection 293 - 195(2) .
Note: Section 291 - 370 prevents some contributions from causing your concessional contributions for a financial year to exceed the concessional contributions cap .
8 After Subdivision 291 - C
Insert:
Subdivision 291 - CA -- Contributions that do not result in excess contributions
Guide to Subdivision 291 - C A
291 - 365 What this Subdivision is about
Some contributions and other amounts are treated as always being within your concessional contributions cap, and therefore cannot be excess concessional contributions .
Table of sections
Operative provisions
291 - 370 Contributions that do not result in excess contributions
291 - 370 Contributions that do not result in excess contributions
(1) In working out your * concessional contributions for a * financial year, treat the sum of the following as an amount equal to your * concessional contributions cap under subsection 291 - 20(2) for the financial year:
(a) contributions made in respect of you for the financial year to a * constitutionally protected fund that would (disregarding this section) be concessional contributions;
(b) if any of your * notional taxed contributions for the financial year:
(i) are worked out under section 291 - 170 of the Income Tax (Transitional Provisions) Act 1997 ; or
(ii) are not worked out under that section, but only because those notional taxed contributions did not meet the requirements of paragraph 291 - 170(2)(b) or (4)(b) of that Act;
the amount of those notional taxed contributions;
(c) if your * defined benefit contributions for the financial year (other than contributions and amounts covered by paragraph ( a)) exceed your notional taxed contributions for the financial year--the amount of that excess;
if that sum would otherwise exceed your concessional contributions cap under subsection 291 - 20(2) for the financial year .
Note: This subsection does not take into account any increase in your concessional contributions cap under subsection 291 - 20(4) .
(2) For the purposes of paragraph ( 1)(a), treat any amounts covered by subsection 291 - 25(3) or paragraph 291 - 165(1)(b) or (c) for the * financial year that relate to a * superannuation interest of yours in the fund as if they were contributions made in respect of you for the financial year to the fund .
( 3 ) This section has effect despite sections 291 - 25 and 291 - 165 of this Act and section 291 - 170 of the Income Tax (Transitional Provisions) Act 1997 .
Income Tax (Transitional Provisions) Act 1997
9 Subdivision 291 - B
Repeal the Subdivision .
10 At the end of subsection 291 - 170(2)
Add:
Note: In some cases, section 291 - 370 of the Income Tax Assessment Act 1997 has the effect of replacing this subsection with a similar rule covering a broader class of contributions and amounts .
11 At the end of subsection 291 - 170(4)
Add:
Note: In some cases, section 291 - 370 of the Income Tax Assessment Act 1997 has the effect of replacing this subsection with a similar rule covering a broader class of contributions and amounts .
12 At the end of section 291 - 170
Add:
Constitutionally protected funds
(6) This section does not apply in relation to a defined benefit interest in a constitutionally protected fund .
13 Application of amendments
The amendments made by this Part apply in relation to the financial year starting on 1 July 2017 and later financial years .
Income Tax Assessment Act 1997
14 Section 293 - 1
Omit "very high income", substitute "high income" .
15 Section 293 - 1
Omit "$300,000", substitute "$250,000" .
16 Sections 293 - 5 and 293 - 10
Omit "very high income", substitute "high income" .
17 Section 293 - 10
Omit "$300,000", substitute "$250,000" .
18 Subsections 293 - 20(1), 293 - 155(1) and 293 - 200(1)
Omit "$300,000", substitute "$250,000" .
Taxation Administration Act 1953
19 Subsection 133 - 15(1) in Schedule 1 (note)
Omit "$300,000", substitute "$250,000" .
20 Application of amendments
The amendments made by this Part apply in relation to the 2017 - 18 income year and later income years .
Part 3 -- Superannuation guarantee charge
Superannuation Guarantee (Administration) Act 1992
21 At the end of section 15
Add:
(5) Despite subsections ( 3) and (4), the maximum contribution base for a quarter in the 2017 - 18 year or any later year is the amount worked out using the following formula, if that amount is less than the amount worked out under those subsections:
where:
"charge percentage" is the number specified in subsection 19(2) for the quarter .
"concessional contributions cap" is the concessional contributions cap, within the meaning of the Income Tax Assessment Act 1997 , for the financial year in which the quarter occurs .
(6) Amounts calculated under subsection ( 5) must be rounded down to the nearest 10 dollar multiple .
