The Tax and Superannuation Laws Amendment (2014 Measures No 1) Regulation 2014 was registered on Wed 19.2.2014, to prescribe an interim method for calculating an individual’s “defined benefit contributions” to enable the Commissioner to determine a liability for Division 293 tax on superannuation concessional contributions for those with incomes above $300,000.
The Regulation inserts reg 293-115.01 of the ITA Regs to prescribe that an individual’s defined benefit contributions for the 2012-13 financial year are the individual’s “notional taxed contributions” in respect of a defined benefit interest for the purposes of s 293-115 of the ITAA 1997. In this respect, the interim method adopts for 2012-13 the existing method used for calculating “notional taxed contributions” in Subdiv 292-D of the ITA Regs which is used for excess contributions tax purposes.
The interim method is for 2012-13 only and the Government intends to prescribe an ongoing method for 2013-14 and subsequent years. The adoption of this interim method follows concerns raised by ASFA and the Actuaries Institute with the actuarial formula proposed in the exposure draft regulation.
The Regulation further notes that the amount of defined benefit contributions is nil for 2012-13 in respect of a defined benefit interest in a constitutionally protected fund as there are no notional taxed contributions for such interests.
The Regulation also updates the lists of public sector superannuation schemes in the Superannuation Guarantee (Administration) Regulations 1993 for the purposes of the choice of fund rules, and prescribes the Tax Office as an “approved clearing house” under s 79A(3) of the SGAA for the purposes of receiving compulsory employer contributions.
DATE OF EFFECT: The interim method in reg 293-115.01 applies on and after 1 July 2012 (but for 2012-13 only).
The amendments to the SG Regs commence on Thur 20.2.2014.
[LTN 34, 20/2/14]