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Subdivision AAC of Division 3 of Part III of the Act has been added with the object of providing rebates for certain non-deductible personal superannuation contributions made after 1st July 1990.
The object of the new subdivision is simple enough, but unfortunately, the legislation intended to achieve that object is far from simple and runs for some twelve pages.
Section 159TL provides that the rebate of tax is available when the following conditions are satisfied in relation to a taxpayer and in relation to a year of income of the taxpayer (the taxpayer's year of income):
(a) the taxpayer is a recognised member of a scheme that is an eligible scheme in relation to the taxpayer and in relation to the taxpayer's year of income;
(b) the taxpayer is not an eligible person in relation to the taxpayer's year of income;
(c) the taxpayer was not a potential recipient of ineligible superannuation benefits in relation to the taxpayer's year of income;
(d) during the taxpayer's year of income the taxpayer makes one or more contributions to
(i) a scheme which is an eligible scheme in relation to the taxpayer and the taxpayer's year of income, or
(ii) a fund where both of the following are satisfied:
(A) the fund is a complying superannuation fund in relation to the year of income of the fund in which the contributions are made;
(B) the taxpayer would have been an eligible person in relation to the taxpayer's year of income if the taxpayer had not been a member of any other fund or scheme during the year of income
to obtain superannuation benefits for the taxpayer or, in the event of the death of the taxpayer, for dependants of the taxpayer.
If those conditions are satisfied the taxpayer is entitled to a rebate of tax in the year of income equal to 25 per cent of the lesser of
(i) $3,000 reduced by 50 cents for each $1 of the amount (if any) by which the taxpayer's assessable income in the year of income exceeds $25,000, and
(ii) the amount of contributions to the relevant scheme or fund.
Section 159TE provides that for the purposes of Subdivision AAC
(a) a scheme is an eligible scheme in relation...