Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:1_5:p1
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 1/23)
Character Range: 137293–140171

5                                CSF            A repayment of a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993
                                 N‑CSF
                                 CADF
                                 N‑CADF

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 these entities is split into a *non‑arm's length component and a *low tax component:
 (a) *complying superannuation funds;
 (b) *complying approved deposit funds;
 (c) *pooled superannuation trusts.

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) 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.

 (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 fund, a *complying approved deposit fund or a *pooled superannuation trust (other than an amount to which subsection (2) applies or an amount *derived by the entity in the capacity of beneficiary of a trust) if:
 (a) it is derived from a *scheme the parties to which were not dealing with each other at *arm's length in relation to the scheme; and
 (b) that amount 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.

 (2) An amount of *ordinary income or *statutory income is also non‑arm's length income of the entity if it is:
 (a) a *dividend paid to the entity by a *private company; or
 (b) ordinary income or statutory income that is reasonably attributable to such a dividend;
unless the amount is consistent with an *arm's length dealing.

 (3) In deciding whether an amount is consistent with an *arm's length dealing under subsection (2), have regard to:
 (a) the value of *shares in the company that are assets of the entity; and
 (b) the cost to the entity of the shares on which the *dividend was paid; and
 (c) the rate of that dividend; and
 (d) whether the company has paid a dividend on other shares in the company and, if so, the rate of that dividend; and
 (e) whether the company has issued any shares to the entity in satisfaction of a