Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 1/33)
Character Range: 4678425–4681282

6                                CSF            An amount payable to a person under an income stream because of the person's temporary inability to engage in *gainful employment
                                 N‑CSF
                                 *RSA provider

Subdivision 295‑H—Components of taxable income

Table of sections
295‑545 Components of taxable income—complying superannuation funds, complying ADFs and PSTs
295‑550 Meaning of non‑arm's length income
295‑555 Components of taxable income—RSA providers

295‑545  Components of taxable income—complying superannuation funds, complying ADFs and PSTs
 (1) The taxable income of a *complying superannuation entity is split into a *non‑arm's length component and a *low tax component.
Note: A concessional rate applies to the low tax component, while the non‑arm's length component is taxed at the highest marginal rate. The rates are set out in the Income Tax Rates Act 1986.
 (2) If an entity is not of a kind referred to in paragraph 295‑550(8)(a) (about certain small entities), the non‑arm's length component for an income year is the entity's *non‑arm's length income for that year less any deductions to the extent that they are attributable to that income.
 (2A) If the entity is of a kind referred to in paragraph 295‑550(8)(a) (about certain small entities), the non‑arm's length component for an income year is the lesser of:
 (a) the sum of:
 (i) each amount of the entity's *non‑arm's length income under subsection 295‑550(1), (2), (4) or (5) for that year less any deductions to the extent that they are attributable to that income; and
 (ii) each amount of the entity's non‑arm's length income under subsection 295‑550(8) or (9) for that year; and
 (b) the entity's taxable income for the income year:
 (i) less the contributions that are included in the entity's assessable income under Subdivision 295‑C for the income year; and
 (ii) plus any deductions to the extent that they are attributable to those contributions.
 (3) The low tax component is any remaining part of the entity's taxable income for the income year.

295‑550  Meaning of non‑arm's length income
 (1) An amount of *ordinary income or *statutory income is non‑arm's length income of a *complying superannuation entity if, as a result of a *scheme the parties to which were not dealing with each other at *arm's length in relation to the scheme, one or more of the following applies:
 (a) the amount of the income is more than the amount that the entity might have been expected to derive if those parties had been dealing with each other at arm's length in relation to the scheme;
 (b) if the entity is of a kind referred to in paragraph (8)(a) (about certain small entities):
 (i) in gaining or producing the income, the entity incurs a loss, outgoing or expenditure of an amount that is less than the amount