Banking (State Bank of South Australia and Other Matters) Act 1994

.(1) For the purposes of this section, a deduction is a reducible deduction if:

apart from this section, the deduction is allowable to Bank of South Australia Limited, or an associate of Bank of South Australia Limited, under section 82AAC of the Income Tax Assessment Act 1936 in respect of a contribution to a fund made before the Proclaimed day for the purposes of making provision for superannuation benefits for, or for dependants of, an ex-employee of:

the State Bank of South Australia; or

a tax-exempt designated subsidiary of the State Bank of South Australia; or

apart from this section, the deduction is allowable to Bank of South Australia Limited, or an associate of Bank of South Australia Limited, under the Income Tax Assessment Act 1936 in respect of so much of a designated ETP made before the Proclaimed day in consequence of the termination of the employment of an ex-employee of:

the State Bank of South Australia; or

a tax-exempt designated subsidiary of the State Bank of South Australia;

as is not an approved early retirement scheme payment or a bona fide redundancy payment.

Reduction of reducible deductions

A reducible deduction that, apart from this section, is allowable to a taxpayer for a year of income is reduced by the percentage worked out using the formula:

where:

“Pre-transfer amount for year” means so much of the aggregate of the reducible deductions allowable to taxpayers for the year of income apart from this section as is attributable to the current actuarial value of liabilities that had accrued on the last day on which the ex-employee or ex-employees concerned were employed by the State Bank of South Australia, or by the tax-exempt designated subsidiary or tax-exempt designated subsidiaries, as the case requires;

“Total reducible deductions for year” means the aggregate of the reducible deductions allowable to taxpayers for the year of income apart from this section.

No deduction unless taxpayer obtains an actuary’s certificate

In spite of subsection (2), a reducible deduction is not allowable to a taxpayer for a year of income unless the taxpayer obtains a certificate by an authorised actuary with respect to the operation of this section. The certificate must be in a form approved in writing by the Commissioner. The taxpayer must obtain the certificate:

before the date of lodgment of the taxpayer’s return of income of the year of income; or

within such further time as the Commissioner allows.

Definitions

In this section:

“approved early retirement scheme payment” has the same meaning as in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936;

“associate” has the same meaning as in section 26AAB of the Income Tax Assessment Act 1936;

“authorised actuary” means a Fellow or an Accredited Member of the Institute of Actuaries of Australia;

“bona fide redundancy payment” has the same meaning as in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936;

“designated ETP” means an eligible termination payment (within the meaning of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936) that is covered by paragraph (a) or (aa) of the definition of “eligible termination payment” in section 27 A of that Act;

“employment” includes the holding of an office;

“ex-employee”:

in relation to the State Bank of South Australia—means a person who is, or has at any time been, the subject of an order under section 19 of the State Bank (Corporatisation) Act 1994 of South Australia and who was employed by that Bank immediately before the order was made; and

in relation to a tax-exempt designated subsidiary of the State Bank of South Australia—means a person who is, or has at any time been, the subject of an order under section 19 of the State Bank (Corporatisation) Act 1994 of South Australia and who was employed by the designated subsidiary immediately before the order was made;

“in consequence of the termination of employment” has the same meaning as in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936;

“Proclaimed day” means a day to be fixed by Proclamation for the purposes of this definition;

“tax-exempt designated subsidiary of the State Bank of South

Australia” means a designated subsidiary of the State Bank of South Australia that is exempt from tax.

PART 2.5—MODIFICATION OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986 RELATING TO THE RESTRUCTURING OF THE STATE BANK OF SOUTH AUSTRALIA