Tax Laws Amendment (2009 Budget Measures No. 1) Act 2009
No. 62, 2009
An Act to amend the law relating to taxation and superannuation, and for related purposes
Contents
1............ Short title............................................................................................ 1
2............ Commencement.................................................................................. 2
3............ Schedule(s).......................................................................................... 2
Schedule 1—Exemption of income derived from foreign service 3
Income Tax Assessment Act 1936 3
Schedule 2—Government Co‑contribution for Low Income Earners 5
Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 5
Schedule 3—Excess contributions tax 8
Income Tax Assessment Act 1997 8
Income Tax (Transitional Provisions) Act 1997 10
Tax Laws Amendment (2009 Budget Measures No. 1) Act 2009
No. 62, 2009
An Act to amend the law relating to taxation and superannuation, and for related purposes
[Assented to 29 June 2009]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Tax Laws Amendment (2009 Budget Measures No. 1) Act 2009.
2 Commencement
This Act commences on the day on which it receives the Royal Assent.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Exemption of income derived from foreign service
Income Tax Assessment Act 1936
1 After subsection 23AG(1)
Insert:
(1AA) However, those foreign earnings are not exempt from tax under this section unless the continuous period of foreign service is directly attributable to any of the following:
(a) the delivery of Australian official development assistance by the person’s employer;
(b) the activities of the person’s employer in operating a public fund covered by item 9.1.1 or 9.1.2 of the table in subsection 30‑80(1) of the Income Tax Assessment Act 1997 (international affairs deductible gift recipients);
(c) the activities of the person’s employer, if the employer is exempt from income tax because of paragraph 50‑50(c) or (d) of the Income Tax Assessment Act 1997 (prescribed institutions located or pursuing objectives outside Australia);
(d) the person’s deployment outside Australia as a member of a disciplined force by:
(i) the Commonwealth, a State or a Territory; or
(ii) an authority of the Commonwealth, a State or a Territory;
(e) an activity of a kind specified in the regulations.
2 Application
(1) The amendment made by this Schedule applies to foreign earnings derived on or after 1 July 2009 from foreign service performed on or after 1 July 2009.
(2) Subitem (3) applies to:
(a) foreign earnings derived before 1 July 2009 from foreign service performed before, on or after 1 July 2009; and
(b) foreign earnings derived on or after 1 July 2009 from foreign service performed before 1 July 2009.
(3) Disregard the amendment made by this Schedule in determining whether the foreign earnings are exempt from tax under subsection 23AG(1) of the Income Tax Assessment Act 1936.
Schedule 2—Government Co‑contribution for Low Income Earners
Superannuation (Government Co‑contribution for Low Income Earners) Act 2003
1 Paragraph 9(1)(b)
Omit “the 2004‑05 income year or a later income year”, substitute “the 2004‑05 income year, the 2005‑06 income year, the 2006‑07 income year, the 2007‑08 income year or the 2008‑09 income year”.
2 Paragraph 9(1)(b)
Omit “year.”, substitute “year; and”.
3 At the end of subsection 9(1)
Add:
(c) for the 2009‑10 income year, the 2010‑11 income year or the 2011‑12 income year—an amount equal to the sum of the eligible personal superannuation contributions the person makes during the income year; and
(d) for the 2012‑13 income year or the 2013‑14 income year—an amount equal to 125% of the sum of the eligible personal superannuation contributions the person makes during the income year; and
(e) for the 2014‑15 income year or a later income year—an amount equal to 150% of the sum of the eligible personal superannuation contributions the person makes during the income year.
4 Subsection 10(1A)
Omit “the 2004‑05 income year or a later income year”, substitute “the 2004‑05 income year, the 2005‑06 income year, the 2006‑07 income year, the 2007‑08 income year or the 2008‑09 income year”.
5 After subsection 10(1A)
Insert:
(1B) The amount of the Government co‑contribution in respect of a person for the 2009‑10 income year, the 2010‑11 income year or the 2011‑12 income year must not exceed the maximum amount worked out using the following table:
Maximum Government co‑contribution
Item
Person’s total income for the income year
Maximum amount
1
the lower income threshold or less
$1,000
2
more than the lower income threshold but less than the higher income threshold
$1,000 reduced by 3.333 cents for each dollar by which the person’s total income for the income year exceeds the lower income threshold
(1C) The amount of the Government co‑contribution in respect of a person for the 2012‑13 income year or the 2013‑14 income year must not exceed the maximum amount worked out using the following table:
Maximum Government co‑contribution
Item
Person’s total income for the income year
Maximum amount
1
the lower income threshold or less
$1,250
2
more than the lower income threshold but less than the higher income threshold
$1,250 reduced by 4.167 cents for each dollar by which the person’s total income for the income year exceeds the lower income threshold
(1D) The amount of the Government co‑contribution in respect of a person for the 2014‑15 income year or a later income year must not exceed the maximum amount worked out using the following table:
Maximum Government co‑contribution
Item
Person’s total income for the income year
Maximum amount
1
the lower income threshold or less
$1,500
2
more than the lower income threshold but less than the higher income threshold
$1,500 reduced by 5 cents for each dollar by which the person’s total income for the income year exceeds the lower income threshold
6 Subsection 10(2)
Omit “Subsections (1) and (1A) has”, substitute “Subsections (1), (1A), (1B), (1C) and (1D) have”.
7 Application
The amendments made by this Schedule apply to the 2009‑10 income year and later income years.
Schedule 3—Excess contributions tax
Income Tax Assessment Act 1997
1 Subsection 292‑20(2)
Repeal the subsection (not including the notes), substitute:
(2) Your concessional contributions cap is:
(a) for the 2007‑2008 *financial year—$50,000; or
(b) for the 2008‑2009 financial year—$50,000; or
(c) for the 2009‑2010 financial year—$25,000; or
(d) for the 2010‑2011 financial year or a later financial year—the amount worked out by indexing annually the amount mentioned in paragraph (c).
2 Subsection 292‑85(2)
Repeal the subsection, substitute:
(2) Your non‑concessional contributions cap is:
(a) for the 2007‑2008 *financial year—the amount that is 3 times your *concessional contributions cap for the year; and
(b) for the 2008‑2009 financial year—the amount that is 3 times your concessional contributions cap for the year; and
(c) for the 2009‑2010 financial year or a later financial year—the amount that is 6 times your concessional contributions cap for the year.
3 Paragraph 292‑170(6)(b)
Omit “apart from this subsection”, substitute “disregarding this subsection and subsection (8)”.
4 At the end of section 292‑170
Add:
(8) Despite subsection (1), your notional taxed contributions for the *financial year in respect of the *defined benefit interest are equal to your *concessional contributions cap for the financial year if:
(a) this Subdivision applies in relation to you because you have a defined benefit interest in a financial year; and
(b) disregarding this subsection, the notional taxed contributions for the financial year in respect of the defined benefit interest exceed your concessional contributions cap for the financial year; and
(c) either:
(i) you held the defined benefit interest in a *superannuation fund on 12 May 2009; or
(ii) all the requirements in subsection (9) are satisfied; and
(d) the conditions (if any) specified in the regulations are satisfied; and
(e) the financial year is the 2009‑2010 financial year or a later financial year.
(9) For the purposes of subparagraph (8)(c)(ii), the requirements are as follows:
(a) you held a *defined benefit interest (the original interest) in a *superannuation fund (the original fund) on 12 May 2009;
(b) the defined benefit interest mentioned in paragraph (8)(a) (the current interest) is in a different superannuation fund (the current fund);
(c) the entire *value of the original interest:
(i) was transferred directly to the current interest after 12 May 2009; or
(ii) was transferred to another *superannuation interest after 12 May 2009, and was later transferred to the current interest (whether directly or through a series of transfers between superannuation interests);
(d) your rights to accrue future benefits under the current interest are equivalent to your rights to accrue future benefits under the original interest;
(e) either:
(i) the notional taxed contributions mentioned in paragraph (8)(b) do not exceed what they would have been if the transfer mentioned in paragraph (c) had not taken place; or
(ii) the conditions (if any) specified in the regulations are satisfied;
(f) the conditions (if any) specified in the regulations are satisfied.
5 Paragraph 960‑285(2)(a)
Repeal the paragraph, substitute:
(a) firstly:
(i) if the amount is mentioned in item 9 in section 960‑265 (concessional contributions cap)—multiplying the amount for the 2009‑2010 financial year by its *indexation factor mentioned in subsection (3A); or
(ii) otherwise—multiplying the amount for the 2007‑2008 income year or financial year by its indexation factor mentioned in subsection (4); and
6 Subsection 960‑285(3)
Omit “subsection (4)”, substitute “subsection (3A) or (4)”.
7 After subsection 960‑285(3)
Insert:
Indexation factor
(3A) For indexation of the amount on an annual basis in accordance with subparagraph (2)(a)(i), the indexation factor is:
8 Subsection 960‑285(4) (heading)
Repeal the heading.
9 Subsection 960‑285(4)
After “annual basis”, insert “in accordance with subparagraph (2)(a)(ii)”.
10 Subsection 960‑285(5)
Omit “subsection (4)”, substitute “subsection (3A) or (4)”.
Income Tax (Transitional Provisions) Act 1997
11 Subsection 292‑20(2)
Repeal the subsection, substitute:
(2) Despite section 292‑20 of the Income Tax Assessment Act 1997, your concessional contributions cap for that financial year is:
(a) if the year is the 2007‑2008 financial year—$100,000; or
(b) if the year is the 2008‑2009 financial year—$100,000; or
(c) if the year is the 2009‑2010 financial year—$50,000; or
(d) if the year is the 2010‑2011 financial year—$50,000; or
(e) if the year is the 2011‑2012 financial year—$50,000.
Note: This amount is not indexed.
[Minister’s second reading speech made in—
House of Representatives on 27 May 2009
Senate on 15 June 2009]
(110/09)
