The Government has released for public consultation an exposure draft for Tax and Superannuation Laws Amendment (2014 Measures No 2) Regulation 2014: Calculating defined benefit contributions – final arrangements from 1 July 2013 and the accompanying explanatory material.

The draft Regulation prescribes the methodology for determining defined benefit contributions for Div 293 tax purposes in respect of the 2013-14 financial year and subsequent years. The draft Regulation has been reviewed following public consultation conducted under the former government in June 2013. The previous draft Regulations can be accessed on the Treasury website.

This Regulation is the final piece of subordinate legislation needed to fully implement the 2012-13 Budget measure, “Superannuation – reduction of higher tax concession for contributions of very high income earners”.

An interim regulation prescribing the methodology to be used in respect of the 2012-13 year was made in the Tax and Superannuation Laws Amendment (2014 Measures No 1) Regulation 2014.

COMMENTS are due by 8 April 2014.

[LTN 57, 25/3/14]