Income Tax Assessment Act 1997 (Cth)

What is my superannuation taxed at?

Superannuation can be a tax-effective way of saving for retirement and it is well known that employers are required to contribute to their employee’s superannuation funds (Funds) separate to taxable income.[1]  However, taxes still apply to all aspects of Funds.  The rate used differs depending on what is being taxed.  [Read more…]

What is Division 293 tax?

The normal rate at which pre-tax superannuation contributions in excess of $25,000 (Contributions) are taxed is 15% as prescribed by section 291.15 of the Income Tax Assessment Act 1997 (Cth) (ITAA).[1]  However, section 293.15 of the ITAA  includes an additional tax on Contributions (Division 293 Tax) that applies subject to certain criteria.[2]  This article discusses the Division 293 Tax, and to whom it applies.  Superannuation contributions equal to or below $25,000 are referred to as Low Tax Contributions. [Read more…]

The use of IRUs in a telecommunications capacity

Indefeasible rights of use agreements (IRU’s) are commonly used in telecommunications agreements for the supply of cable system capacity services.  IRU’s have specific tax treatment under section 995.1 of the Income Tax Assessment Act 1997 (Cth) and are treated as capital expenditure for suppliers and customers.  Tax considerations play a central role in structuring IRU’s. Below, we set out the key areas an IRU must cover to be tax compliant. [Read more…]

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