Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p34
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 34/80)
Character Range: 4425547–4428405

treat the amount of the decrease as a capital loss of the trust for the discovery year; or
 (c) in any other case—treat the amount of the decrease as a deduction of the trust for the discovery year.
 (3) If that character relates to *exempt income, treat the amount of the decrease as reducing the exempt income of the trust for the discovery year.
 (4) If that character relates to *non‑assessable non‑exempt income, treat the amount of the decrease as reducing the non‑assessable non‑exempt income of the trust for the discovery year.
 (5) If that character relates to a *tax offset, treat the amount of the decrease as reducing the tax offset or offsets (the existing offset or offsets) of the trust for the discovery year of a kind corresponding to that character.
 (6) If that character relates to a *tax offset and exceeds the total of the existing offset or offsets (before the reduction under subsection (5)):
 (a) unless paragraph (b) applies—the trustee is liable to pay tax at the rate declared by the Parliament on the excess; or
Note: The tax is imposed by the Income Tax (Attribution Managed Investment Trusts—Offsets) Act 2016 and the rate of the tax is set out in that Act.
 (b) if that character is the character of *foreign income tax paid that counts towards a tax offset under Division 770—subsection (7) applies.
 (7) Increase the trust's assessable income for the discovery year by the sum of:
 (a) the excess mentioned in subsection (6); and
 (b) the product of:
 (i) that excess; and
 (ii) the *corporate tax gross‑up rate.
Treat the amount of that increase as assessable income from a source other than an *Australian source.

Part 3‑30—Superannuation

Division 280—Guide to the superannuation provisions

Table of sections
280‑1 Effect of this Division
280‑5 Overview

Contributions phase
280‑10 Contributions phase—deductibility
280‑15 Contributions phase—limits on superannuation tax concessions

Investment phase
280‑20 Investment phase

Benefits phase
280‑25 Benefits phase—different types of superannuation benefit
280‑30 Benefits phase—taxation varies with age of recipient and type of benefit
280‑35 Benefits phase—roll‑overs

The regulatory scheme outside this Act
280‑40 Other relevant legislative schemes

280‑1  Effect of this Division
 (1) This Division is a *Guide.
 (2) Tax concessions in this Part are intended to encourage Australians to save in order to make provision for their retirement, recognising that superannuation investments, and the income from them, are quarantined for retirement.

280‑5  Overview
 (1) There are 3 phases in the tax treatment of superannuation, as follows:
 (a) the contributions phase;
 (b) the investment phase;
 (c) the benefits phase.
 (2) In the contributions phase, contributions are made to a superannuation plan in respect of a member of the plan.
 (3) In the investment phase,