Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- Low income superannuation tax offset
Superannuation (Government Co - contribution for Low Income Earners) Act 2003
1 Subsection 5(2)
After:
• Part 2 (sections 6 to 12) tells you who are the people in respect of whom a Government co - contribution is payable . It also tells you how much the co - contribution is .
insert:
• Part 2A (sections 12B to 12G) tells you who are the people entitled to a low income superannuation tax offset . It also tells you how much the low income superannuation tax offset is .
2 After Part 2
Insert:
Part 2A -- Low income superannuation tax offset
(1) A law of the Commonwealth applies in relation to a low income superannuation tax offset in the same way as it applies in relation to a Government co - contribution .
(2) Subsection ( 1) does not apply to:
(a) the following provisions:
(i) Part 2 of this Act (other than section 12);
(ii) this Part;
(i ii ) section 23 of this Act ;
(i v ) section 54 of this Act; and
(b) any other law of the Commonwealth, to the extent that the other law relates to a provision mentioned in paragraph ( a) of this subsection .
(3) Paragraph 14(1)(a) (Commissioner to have regard to income tax return) does not apply in deciding whether to make a determination under section 13 that a low income superannuation tax offset is payable under subsection 12C(2) in respect of a person for an income year .
(4) Subsections 24(3) and (4) have an operation in respect of low income superannuation tax offsets that is separate to their operation in respect of Government co - contributions .
12C Person entitled to low income superannuation tax offset
(1) A low income superannuation tax offset is payable under this subsection in respect of a person for an income year of the person if:
(a) the person's concessional contributions for the financial year that corresponds to the income year are for a financial year starting on or after 1 July 2017; and
(b) the person's adjusted taxable income for the income year (worked out in accordance with Schedule 3 to the A New Tax System (Family Assistance) Act 1999 (disregarding clauses 3 and 3A of that Schedule)) does not exceed $37,000; and
(c) the requirement in paragraph 6(1)(b) is satisfied in respect of the person in relation to the income year; and
(d) the requirement in paragraph 6(1)(f) is satisfied in respect of the person in relation to the income year .
(2) A low income superannuation tax offset is payable under this subsection in respect of a person for an income year of the person if:
(a) the person's concessional contributions for the financial year that corresponds to the income year are for a financial year starting on or after 1 July 2017; and
(b) 12 months after the end of the income year, the Commissioner reasonably believes there is insufficient information to decide whether to make a determination under section 13 that a low income superannuation tax offset is payable under subsection ( 1) in respect of the person for the income year; and
(c) the Commissioner estimates that:
(i) the person's adjusted taxable income for the income year (worked out in accordance with Schedule 3 to the A New Tax System (Family Assistance) Act 1999 (disregarding clauses 3 and 3A of that Schedule)) does not exceed $37,000; and
(ii) 10% or more of the person's total income for the income year (disregarding subsections 8(2) and (3)) is attributable to the person engaging in activities covered under subsection 6(2); and
(d) the requirement in paragraph 6(1)(f) is satisfied in respect of the person in relation to the income year .
(3) For the purposes of paragraph ( 1)(c), disregard the words "in which the person makes the contribution" in paragraph 6(2)(a) .
(4) For the purposes of subparagraph ( 2)(c)(i), treat the person as having total deductions of $300 for the income year unless the Commissioner has information to the contrary .
(5) For the purposes of subparagraph ( 2)(c)(ii), disregard the words "in the income year in which the person makes the contribution" in paragraph 6(2)(a) .
12E Amount of low income superannuation tax offset
(1) This section applies if a low income superannuation tax offset is payable under subsection 12C(1) or (2) in respect of a person for an income year .
(2) The amount of the person's low income superannuation tax offset for the income year is:
(a) unless paragraph ( b) or (c) applies--15% of the total of the person's concessional contributions for the financial year that corresponds to the income year; or
(b) if the amount worked out under paragraph ( a) exceeds $500--$500; or
(c) if the amount worked out under paragraph ( a) is less than $10--$10 .
( 3 ) For the purposes of paragraph ( 2)(a), disregard:
(a) contributions or amounts covered by paragraph 291 - 370(1)(a) of the Income Tax Assessment Act 1997 (about contributions or amounts in relation to constitutionally protected funds); and
(b) any other amounts covered by paragraph 291 - 165(1)(c) of that Act .
( 4 ) If, apart from this subsection:
(a) there would be an underpaid amount as mentioned in section 19 in respect of the person's low income superannuation tax offset for the income year; and
(b) the underpaid amount would be less than $10;
decrease the amount of that low income superannuation tax offset by that underpaid amount .
( 5 ) If, apart from this subsection:
(a) there would be an amount overpaid as mentioned in section 24 in respect of the person's low income superannuation tax offset for the income year; and
(b) the amount overpaid would be less than $10;
increase the amount of that low income superannuation tax offset by that amount overpaid .
12F Consequences if estimates no longer accurate
(1) Treat a low income superannuation tax offset as never having been payable under subsection 12C(2) in respect of a person for an income year if:
(a) the Commissioner obtains information after making the determination under section 13 that the tax offset was so payable; and
(b) the Commissioner decides that, had the Commissioner obtained that information before making the determination, the Commissioner would not have made the determination .
Note: The tax offset will be recoverable under section 24 .
(2) The Commissioner must give the person written notice of the Commissioner's decision under paragraph ( 1)(b) .
(1) After the end of each quarter the Commissioner must give the Minister a report, for presentation to the Parliament, on the working of this Part during the quarter . The report must include, for the quarter to which the report relates, the prescribed details about beneficiaries of, and amounts of, low income superannuation tax offsets .
(2) After the end of each financial year the Commissioner must give the Minister a report, for presentation to the Parliament, that:
(a) is on the working of this Part during the financial year; and
(b) includes, for the financial year to which the report relates, the prescribed details about beneficiaries of, and amounts of, low income superannuation tax offsets .
3 Subsection 49(1)
After "Part 2,", insert "2A," .
4 At the end of section 55
Add:
Note: The regulations may relate to the Government co - contribution and the low income superannuation tax offset (see section 12B) .
5 Section 56
Insert:
"concessional contributions" has the same meaning as in the Income Tax Assessment Act 1997 .
"low income superannuation tax offset" means a low income superannuation tax offset payable under this Act .
6 Application of amendments
(1) The amendments made by this Schedule apply to the 2017 - 18 income year and later income years .
(2) The following provisions of the Superannuation (Government Co - contribution for Low Income Earners) Act 2003 apply in relation to a low income superannuation contribution in the same way as they apply in relation to a low income superannuation tax offset:
(a) sections 24 and 25;
(b) any other provision of that Act to the extent that it relates to the provisions mentioned in paragraph ( a) .
Minerals Resource Rent Tax Repeal and Other Measures Act 2014
7 Subitem 7(2) of Schedule 7
After "in relation to", insert "low income superannuation contributions for" .
8 Item 8 of Schedule 7
Repeal the item .