295545 Components of taxable income—complying superannuation funds, complying ADFs and PSTs (1) The taxable income of these entities is split into a length *nonarm’s component and a tax component: *low (a) superannuation funds; *complying (b) approved deposit funds; *complying (c) superannuation trusts. *pooled Note: A concessional rate applies to the low tax component, the nonarm’s length component is taxed at the highest marginal rate. The rates are set out in the Income Tax Rates Act 1986. (2) The for an income year is the entity’s nonarm’s length component length income for that year less any deductions to the *nonarm’s extent that they are attributable to that income. (3) The is any remaining part of the entity’s low tax component taxable income for the income year. 295550 Meaning of nonarm’s length income (1) An amount of income or income is nonarm’s *ordinary *statutory of a superannuation fund, a length income *complying *complying approved deposit fund or a superannuation (other than *pooled 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 the parties to were not *scheme dealing with each other at length in relation to the *arm’s 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 income or income is also *ordinary *statutory of the entity if it is: nonarm’s length income (a) a paid to the entity by a company; or *dividend *private
295545 Components of taxable income—complying superannuation funds, complying ADFs and PSTs (1) The taxable income of these entities is split into a *nonarm’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, the nonarm’s length component is taxed at the highest marginal rate. The rates are set out in the Income Tax Rates Act 1986. (2) The nonarm’s length component for an income year is the entity’s *nonarm’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. 295550 Meaning of nonarm’s length income (1) An amount of *ordinary income or *statutory income is nonarm’s length income of a *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation (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 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 nonarm’s length income of the entity if it is: (a) a *dividend paid to the entity by a *private company; or
Income_Tax_Assessment_Act_1997_Super_Extract-1.docx