Tax law

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…]

Division 7A ITTA 1936 (Cth) – compliance & consequences

Division 7 (sections 102V to 109ZE) of the Income Tax Assessment Act 1936 (Cth) (Tax Act) contains specific requirements for advances of moneys and loans between private companies and its shareholders or associates.  Section 109B of the Act describes three (3) classes of payments which will be deemed to be dividends: [Read more…]

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