The Superannuation Legislation Amendment (2013 Measures No 2) Regulation 2013 was registered on Mon 16.12.2013] to amend the SIS Regs and RSA Regs to facilitate the release of superannuation amounts pursuant to a release authority to pay tax liabilities arising from certain superannuation contributions.
From 1 July 2013, excess concessional contributions (ECCs) are included in an individual’s assessable income under Div 291 of the ITAA 1997. To meet the additional tax liability, a taxpayer can elect to release up to 85% of their excess concessional contributions from their superannuation fund to the Commissioner under Div 96, Sch 1 to the TAA.
Likewise, individuals with incomes above $300,000 are subject to an additional 15% Division 293 tax on their low tax contributions from 2012-13. The Commissioner will issue a release authority under Div 135, Sch 1 to the TAA to allow money to be released from superannuation to pay any Division 293 tax.
The amending Regulation updates the cashing restrictions in the SIS Regs to enable an amount to be released from an individual’s superannuation (or income stream) under a release authority to meet a consequential tax liability arising under Divs 291 or 293 of the ITAA 1997. The new exceptions to the cashing restrictions allow for payments to be made from superannuation directly to the Commissioner where this is required (or allowed) by the new release authorities under Div 96 (for ECCs) or Div 135 (for Division 293 tax) in Sch 1 to the TAA. As such, the Regulation enables superannuation providers to make these payments if they are given a release authority.
The pension and annuity rules have also been amended to ensure that these products allow for payments in compliance with a release authority, together with new definitions of “non-commutable allocated annuity” (reg 6.01AA) and “non-commutable allocated pension” (reg 6.01AB).
In addition, the amending Regulation revises the list of exempt public sector superannuation schemes (EPSSSs) in Sch 1AA of the SIS Regs and the list of unfunded defined benefits superannuation schemes (UDBSSs) in the Superannuation Contributions Tax (Assessment and Collection) Regulations 1997.
DATE OF EFFECT: The Regulation commences on Tues 17.12.2013 (except for some amendments to the lists of UDBSSs and EPSSSs that apply from earlier dates to give effect to arrangements that some States already have in place).
[LTN 243, 16/12/13