The Taxation Administration Act 1953 (Meaning of End Benefit) Instrument 2013 was registered on Thur 5.12.2013. Its purpose is to ensure that family law superannuation payments are not “end benefits” under s 133-130 in Sch 1 to the TAA and therefore do not trigger an individual’s liability to pay Div 293 tax that has been deferred to a debt account.
The additional 15% Div 293 tax that applies to the concessional contributions of individuals above the $300,000 high income threshold from 2012-13 was implemented by the Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Act 2013. Special arrangements apply to contributions in respect of a defined benefit interest. The tax on these contributions is deferred to a debt account and the due date for payment deferred until the payment of the first superannuation benefit (the end benefit) from the relevant interest.
The Instrument specifies that a family law superannuation payment is not an end benefit.
An exposure draft of the Instrument was released in June 2013. The Draft proposed excluding family law superannuation payments and permanent incapacity payments from being “end benefits”. Treasury received 3 submissions in response to the Draft. Note the Final only excludes family law superannuation payments and not permanent incapacity payments.
DATE OF EFFECT: The Instrument is taken to have applied from 1 July 2012.
[LTN 236, 5/12/13]
s130-130 Taxation Administration Act 1953, Schedule 1 – Meaning of ‘end benefit’
(1) A * superannuation benefit is the end benefit for a * superannuation interest if it is the first superannuation benefit to become payable from the interest, disregarding a benefit that is any of the following:
(a) a * roll-over superannuation benefit paid to a * complying superannuation plan that is a * successor fund;
(b) a benefit that becomes payable under the condition of release specified in item 105 of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 (about severe financial hardship );
(c) a benefit that becomes payable under the condition of release specified in item 107 of that table (about compassionate ground);
(d) a benefit specified in an instrument under subsection (2).
(2) The Minister may, by legislative instrument, specify a * superannuation benefit for the purposes of paragraph (1)(d).
(3) Despite subsection 12(2) of the Legislative Instruments Act 2003 , a legislative instrument made under subsection (2) may be expressed to take effect from any time on or after 1 July 2012.