Source: https://www.legislation.gov.au/Details/C2017A00132
Timestamp: 2019-03-18 17:33:08
Document Index: 483517688

Matched Legal Cases: ['art 1', 'art 2', 'art 1', 'art 3', 'art 2', 'art 3']

Details: C2017A00132
- C2017A00132
Act No. 132 of 2017 as made
Originating Bill: Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017
C2017A00132
No. 132, 2017
Schedule 1—First home super saver scheme 4
Part 1—Determinations and release authorities 4
Division 1—First home super saver determinations 4
Division 2—Release authorities 11
Part 2—Tax consequences of scheme 12
Division 1—Definitions 23
Division 2—Income tests 24
Student Assistance Act 1973 26
Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 26
Schedule 2—Contributing the proceeds of downsizing to superannuation 27
This Act is the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Act 2017.
Schedule 1—First home super saver scheme
Part 1—Determinations and release authorities
Division 1—First home super saver determinations
1 At the end of Part 3‑20 in Schedule 1
Division 138—First home super saver scheme
138‑A First home super saver determination
138‑B FHSS maximum release amount
138‑1 What this Division is about
If you have had voluntary contributions into superannuation, you may be eligible to have those contributions and their associated earnings released for the purposes of purchasing or constructing your first home.
Subdivision 138‑A—First home super saver determination
Guide to Subdivision 138‑A
138‑5 What this Subdivision is about
138‑10 First home super saver determination
138‑15 Review
(ii) your *non‑concessional contributions;
(ii) a lease of land in Australia (including a renewal or extension of such a lease) as described in paragraph 104‑115(1)(b) of the Income Tax Assessment Act 1997; or
(b) a decision the Commissioner makes not to make a determination under subsection 138‑10(2A);
Subdivision 138‑B—FHSS maximum release amount
Guide to Subdivision 138‑B
138‑20 What this Subdivision is about
Your FHSS maximum release amount comprises your eligible non‑concessional contributions, 85% of your eligible concessional contributions, and your associated earnings.
138‑25 FHSS maximum release amount
138‑30 FHSS releasable contributions amount
138‑35 Eligible contributions
138‑40 Associated earnings
(a) your *FHSS releasable contributions amount worked out under section 138‑30; and
(b) your associated earnings worked out under section 138‑40.
(a) your *FHSS eligible non‑concessional contributions for the financial year;
(a) if an *FHSS eligible concessional contribution, and an *FHSS eligible non‑concessional contribution, is made in respect of you at the same time, the FHSS eligible non‑concessional contribution is taken to have been made first; and
(b) if, for a particular *financial year, you personally made both *FHSS eligible concessional contributions and *FHSS eligible non‑concessional contributions, the FHSS eligible non‑concessional contributions are taken to have been made first.
Example: For paragraph (b), in the 2018‑2019 financial year, you made voluntary contributions of $1,000 each fortnight, up to a total of $25,000. At the end of the financial year, you claim a deduction for $15,000 (leaving $10,000 of the contributions as non‑concessional contributions).
If all of the non‑concessional contributions are eligible to be released under section 138‑35, the first 10 contributions made for the financial year are taken to have been the non‑concessional contributions, and the later contributions are taken to be the concessional contributions.
(2) A *concessional contribution, or *non‑concessional contribution, for a *financial year is not eligible to be released unless it:
(a) you have *excess concessional contributions for a *financial year (your excess amount); and
(b) your excess amount is greater than your *concessional contributions for the financial year that are not eligible to be released under subsection (2) (your non‑eligible contributions);
concessional contributions that are equal to the difference between your excess amount and your non‑eligible contributions are not eligible to be released.
(a) you have *non‑concessional contributions for the *financial year that exceed your non‑concessional contributions cap for the financial year (your excess amount); and
(b) your excess amount is greater than your non‑concessional contributions for the financial year that are not eligible to be released under subsection (2) (your non‑eligible contributions);
non‑concessional contributions that are equal to the difference between your excess amount and your non‑eligible contributions are not eligible to be released.
(5) For the purposes of this section, disregard paragraph 292‑90(1)(b) of the Income Tax Assessment Act 1997.
Note: Under paragraph 292‑90(1)(b) of the Income Tax Assessment Act 1997, your non‑concessional contributions for a financial year would include the amount of your excess concessional contributions (if any) for the financial year.
shortfall interest charge rate means the rate, worked out under subsection 280‑105(2), for the day.
(a) if the contribution is made in the *financial year starting on 1 July 2017—on 1 July 2017; and
(b) if the contribution is made in the financial year starting on 1 July 2018, or a later financial year—on the first day of the month in which the contribution is made or taken to have been made (see subsection 138‑30(2));
Division 2—Release authorities
2 Section 131‑1 in Schedule 1
3 At the end of subsection 131‑5(1) in Schedule 1
4 Paragraph 131‑10(1)(a) in Schedule 1
Omit “item 1 or 3”, substitute “item 1, 3 or 4”.
5 Subsection 131‑10(1) in Schedule 1 (at the end of the table)
Part 2—Tax consequences of scheme
6 Section 10‑5 (table item headed “superannuation”)
first home super saver scheme ..........................................
7 Section 12‑5 (table item headed “superannuation—deductibility of contributions”)
contributions to non‑complying funds ............................
sections 290‑10 and 290‑75
first home super saver scheme re‑contribution ..............
section 290‑168
8 Section 13‑1 (table item headed “superannuation”)
313‑25
9 Subsection 290‑150(2)
Before “and 290‑170”, insert “, 290‑168”.
10 Before 290‑170
290‑168 Contribution must not be a re‑contribution under the first home super saver scheme
You cannot deduct the contribution if you notified the Commissioner about the contribution under section 313‑50 (about contributing amounts to superannuation that were previously released under the *first home super saver scheme).
11 Section 303‑15 (note)
Omit “section 304‑20”, substitute “sections 304‑20 and 313‑20”.
12 At the end of Part 3‑30
Division 313—First home super saver scheme
313‑A Preliminary
313‑B Assessable income and tax offset
313‑C Purchasing or constructing a residential premises
313‑D Contributing amounts to superannuation
313‑E First home super saver tax
313‑F Review of decisions
313‑1 What this Division is about
You also have a limited period within which to enter into a contract to purchase or construct a residential premises or re‑contribute an amount to your superannuation. If you do not notify the Commissioner that you have done one of those things, you become liable for tax.
Subdivision 313‑A—Preliminary
313‑5 Object of this Division
313‑10 Application of this Division
The object of this Division is to provide an individual with concessional tax treatment for amounts released from superannuation for the purposes of purchasing or constructing the individual’s first home.
This Division applies to you if one or more amounts (the FHSS released amounts) are paid in response to a release authority issued under Division 131 in Schedule 1 to the Taxation Administration Act 1953 in relation to a *first home super saver determination made in relation to you.
Subdivision 313‑B—Assessable income and tax offset
Guide to Subdivision 313‑B
313‑15 What this Subdivision is about
313‑20 Amount included in assessable income
313‑25 Amount of the tax offset
Note 2: Any amounts paid in response to the release authorities are non‑assessable non‑exempt income (see section 303‑15).
You are entitled, for the income year mentioned in section 313‑20, to a *tax offset that is equal to 30% of your *assessable FHSS released amount for the income year.
Note: This offset cannot be refunded, transferred or carried forward (see item 20 of the table in subsection 63‑10(1)).
Subdivision 313‑C—Purchasing or constructing a residential premises
Guide to Subdivision 313‑C
313‑30 What this Subdivision is about
313‑35 Purchasing or constructing a residential premises
313‑40 Notifying Commissioner
Note: If you request an extension of the period, you may object against a decision of the Commissioner under this section (see section 313‑85).
(1) You must notify the Commissioner in the *approved form of the matters set out in paragraphs 313‑35(1)(a) to (d).
Note: If you request an extension of the period, you may object against a decision of the Commissioner under this subsection (see section 313‑85).
Subdivision 313‑D—Contributing amounts to superannuation
Guide to Subdivision 313‑D
313‑45 What this Subdivision is about
If an amount is released from your superannuation interests under the first home super saver scheme, and you do not enter into a contract within a particular period to purchase or construct a residential premises, you may make one or more non‑concessional contributions. If you do not notify the Commissioner that you have made the contributions, you may be liable for tax under Subdivision 313‑E.
313‑50 Contributing amounts to superannuation
(a) you do not notify the Commissioner in accordance with section 313‑40 (about purchasing or constructing a *residential premises); and
(b) you make one or more *non‑concessional contributions the sum of which is at least equal to:
(ii) the amount withheld by the Commissioner from your *FHSS released amounts under section 12‑460 in Schedule 1 to the Taxation Administration Act 1953; and
(c) you make the contributions within the period mentioned in paragraph 313‑35(1)(a).
Note: Paragraph 313‑35(1)(a) sets out the period in which you must have entered into a contract to purchase or construct a residential premises.
Note 1: If you notify the Commissioner, you cannot deduct the contribution (see section 290‑168).
Note 2: If you do not notify the Commissioner, you may be liable for tax (see Subdivision 313‑E).
(3) The notification must be made within the period mentioned in paragraph 313‑35(1)(a) or such longer period as the Commissioner allows under this subsection.
Subdivision 313‑E—First home super saver tax
Guide to Subdivision 313‑E
313‑55 What this Subdivision is about
(b) make one or more non‑concessional contributions, and notify the Commissioner of the contributions.
313‑60 First home super saver tax
313‑65 When tax is payable—original assessments
313‑70 When tax is payable—amended assessments
313‑75 General interest charge
(a) neither of section 313‑40 or 313‑50 applies to you; or
(b) section 313‑40 applies to you and you do not notify the Commissioner in accordance with that section; or
(c) section 313‑50 applies to you and you do not notify the Commissioner in accordance with that section.
Note 2: Section 313‑40 is about purchasing or constructing a residential premises. Section 313‑50 is about making one or more non‑concessional contributions.
Subdivision 313‑F—Review of decisions
Guide to Subdivision 313‑F
313‑80 What this Subdivision is about
313‑85 Review rights for decisions made under this Division
(i) subsection 313‑35(2) (for entering into a contract to purchase or construct a *residential premises); or
(ii) subsection 313‑40(2) or 313‑50(3) (for notifying the Commissioner of matters); and
13 Subsection 10‑5(1) in Schedule 1 (note)
Omit “and 22”, substitute “, 22 and 27”.
14 Subsection 10‑5(1) in Schedule 1 (at the end of the table)
12‑460
Subdivision 12‑J—FHSS released amounts
12‑460 FHSS released amounts
16 Subsection 15‑10(2) in Schedule 1
Omit “or 12‑G (except one covered by section 12‑325)”, substitute “, 12‑G (except one covered by section 12‑325) or 12‑J”.
17 At the end of subsection 155‑5(2) in Schedule 1
18 Subsection 155‑15(1) in Schedule 1 (note)
Omit “or excess transfer balance tax”, substitute “, excess transfer balance tax or first home super saver tax”.
19 At the end of subsection 155‑30(3) in Schedule 1
20 Subsection 250‑10(2) in Schedule 1 (after table item 38BC)
313‑65 and 313‑70
assessable FHSS released amount, for an income year, means the amount included in a person’s assessable income for the income year under section 313‑20 in respect of the person’s *FHSS released amounts.
FHSS eligible concessional contribution for a *financial year means a *concessional contribution for the financial year that is eligible to be released under section 138‑35 in Schedule 1 to the Taxation Administration Act 1953.
FHSS eligible non‑concessional contribution for a *financial year means a *non‑concessional contribution for the financial year that is eligible to be released under section 138‑35 in Schedule 1 to the Taxation Administration Act 1953.
FHSS maximum release amount has the meaning given by section 138‑25 in Schedule 1 to the Taxation Administration Act 1953.
FHSS releasable contributions amount has the meaning given by subsection 138‑30(1) in Schedule 1 to the Taxation Administration Act 1953.
FHSS released amounts has the meaning given by section 313‑10.
first home super saver determination has the meaning given by subsection 138‑10(1) in Schedule 1 to the Taxation Administration Act 1953.
Division 2—Income tests
After “that year”, insert “, disregarding the individual’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year”.
After “child support period”, insert “, disregarding the parent’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year of income”.
After “the year”, insert “, disregarding any assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) that may be included in the parent’s assessable income for the year”.
25 Paragraph 154‑5(1)(a)
After “the income year”, insert “, disregarding the person’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for the income year”.
After “year of income”, insert “, disregarding the individual’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for the year of income”.
27 Paragraph 35‑10(2E)(a)
After “that year”, insert “, disregarding your *assessable FHSS released amount for that year”.
28 Subparagraph 61‑580(1)(d)(i)
After “the current year”, insert “, disregarding your *assessable FHSS released amount for the current year”.
29 Subparagraph 83A‑35(2)(b)(i)
After “this section”, insert “, but not including your *assessable FHSS released amount for the income year”.
30 Subparagraph 290‑230(2)(c)(i)
After “assessable income”, insert “, disregarding your spouse’s *assessable FHSS released amount for the income year”.
31 Subsection 995‑1(1) (paragraph (a) of the definition of income for surcharge purposes)
After “disregarding”, insert “the person’s *assessable FHSS released amount for the income year and”.
After “income year”, insert “, disregarding the person’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for the income year”.
33 Paragraph 1067G‑F10(a)
After “that year”, insert “, disregarding each parent’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year”.
34 Paragraph 1071‑3(a)
After “that year”, insert “, disregarding the person’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year”.
37 Paragraph 118ZZA‑3(a)
1 Subsection 290‑150(2)
After “290‑165”, insert “, 290‑167”.
2 After section 290‑165
290‑167 Contribution must not be a downsizer contribution
You cannot deduct the contribution if it is a contribution that is covered under section 292‑102 (about downsizer contributions).
3 After subparagraph 292‑90(2)(c)(iii)
(iiia) a contribution covered under section 292‑102 (downsizer contributions);
4 After section 292‑100
292‑102 Downsizer contributions
(b) the contribution is an amount equal to all or part of the *capital proceeds received from the *disposal of an *ownership interest (the old interest) in a *dwelling; and
(i) for the case where you held it just before the disposal—is wholly or partially disregarded under Subdivision 118‑B (or would have been if you had *acquired it on or after 20 September 1985); or
(ii) otherwise—would have been wholly or partially disregarded under Subdivision 118‑B had you held the old interest for a period before the disposal; and
10‑year ownership condition
(b) if subsection 118‑147(1):
(i) applies because the old interest was a substitute property interest (within the meaning of that subsection) for an old dwelling referred to in paragraph 118‑147(1)(a); or
(ii) would have applied as described in subparagraph (i) if paragraph 118‑147(1)(a) were modified to refer to a dwelling (the old dwelling) that was your main residence;
Note: Section 118‑147 deals with a dwelling replacing an earlier dwelling that was compulsorily acquired or destroyed etc.
(4) A related spousal interest, to an *ownership interest in a *dwelling, is another ownership interest in the dwelling if:
related spousal interest has the meaning given by subsection 292‑102(4).
6 Subsection 355‑65(3) in Schedule 1 (at the end of the table)
is for the purpose of complying with subsection 292‑102(9) of the Income Tax Assessment Act 1997.
House of Representatives on 7 September 2017