Document ID: chunk:federal_register_of_legislation:C2025C00014:clause:2d_2:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: clause
Provision Reference: sch 2D cl 2 (pt 4/9)
Character Range: 2181470–2184329

the Income Tax Assessment Act 1997 for a contribution made to a fund in relation to a person if the person was an employee of the transition taxpayer at any time before or after the transition time.

Deduction allowable only if sum of all deductions exceeds general superannuation threshold amount
 (2) The deduction is not allowable for a year of income if the sum of all deductions of the transition taxpayer to which this section applies for the year of income is less than or equal to the general superannuation threshold amount (see subsection (4)) for the year of income.

Amount of deduction not allowable
 (3) If the sum is greater than the general superannuation threshold amount, so much of the deduction as is worked out using the following formula is not allowable:

Meaning of general superannuation threshold amount
 (4) The general superannuation threshold amount for a year of income is:
 (a) if the year of income is the transition year—the undischarged superannuation liability amount (see subsection (5)); or
 (b) in any other case—the amount applicable under paragraph (a), reduced by the total amount of deductions to which this section applies that, because of subsection (2) or (3), have not (disregarding section 57‑55) been allowable to the transition taxpayer for all previous years of income.

Meaning of undischarged superannuation liability amount
 (5) This is how to work out the transition taxpayer's undischarged superannuation liability amount:

           Step 1. For each person who was an employee of the transition taxpayer at any time before the transition time, take the sum of:

                (a) if the whole or any part of the person's period of employment with the transition taxpayer took place before the beginning of the superannuation guarantee period (see subsection (6)) and there were one or more required award etc. contribution amounts (see subsection (7)) in respect of any of that whole or part—that amount or those amounts; and
                (b) if, for the whole or any part or parts of the superannuation guarantee period, there were one or more required award etc. contribution amounts that were greater than the required superannuation guarantee contribution amount or amounts (see subsection (8))—that greater amount or those greater amounts; and
                (c) if, for the whole or any part or parts of the superannuation guarantee period, either there was no required award etc. contribution amount or there was such an amount but it was not greater than the required superannuation guarantee contribution amount—the required superannuation guarantee contribution amount for the whole or the part of the period, or the sum of the required superannuation guarantee contribution amounts for the parts of the period, as the case may be.

           Step 2. Reduce the sum from Step 1 by