Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 11/12)
Character Range: 4605276–4608087

in assessable income, allow deductions and exempt amounts from income tax.
           Step 3. Work out the entity's taxable income as if its trustee:

                (a) were an Australian resident (except where paragraph (b) applies); or
                (b) for a *non‑complying superannuation fund that is a *foreign superannuation fund for the income year—were not an Australian resident.

           Step 4. For a *complying superannuation entity, work out the *low tax component and *non‑arm's length component of the entity's taxable income.
           Step 5. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to:

                (a) if step 4 applies to the entity—the components worked out under that step; or
                (b) otherwise—the entity's taxable income.

           Step 6. Subtract the entity's *tax offsets from the step 5 amount or, for a *superannuation fund, from the sum of the fund's step 1 and step 5 amounts.
 (2) Use this method for *RSA providers:

      Method statement
           Step 1. Work out the entity's *no‑TFN contributions income. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to that income.
           Step 2. Work out the entity's assessable income and deductions taking account of the special rules in this Division.
           Step 3. Work out the *RSA component and *standard component of the entity's taxable income.
           Step 5. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to the components. The *RSA component is taxed at a concessional rate.
           Step 6. Subtract the entity's *tax offsets from the sum of the entity's step 1 and step 5 amounts.

295‑15  Division does not impose a tax on property of a State
  This Division does not impose a tax on property of any kind belonging to a State (within the meaning of section 114 of the Constitution).

295‑20  Exempting laws ineffective
  A *Commonwealth law (other than this Act) does not have the effect of exempting the trustee of an entity to which this Division applies from the liability to pay tax unless it does so expressly.

295‑25  Assessments on basis of anticipated SIS Act notice
 (1) The Commissioner may make an assessment for a fund or trust that is not a *complying superannuation entity for the income year as if it were such an entity if the Commissioner considers it likely that a notice will be given under section 40 of the Superannuation Industry (Supervision) Act 1993 having the effect that it will become such an entity.
 (2) However, the grounds for making an assessment under subsection (1) are taken never to have existed if:
 (a) the Commissioner becomes satisfied that the notice will not be given; or
 (b) *APRA does not receive the documents referred to in subsection 36(1) of the