Amalgamated accounts—no interest if $1,200 limit avoided
55 Amalgamated accounts—no interest if $1,200 limit avoided
When section applies
This section applies if:
the Commissioner becomes aware that 2 or more accounts (the separate accounts) are being kept in respect of the same individual; and
the Commissioner of Taxation amalgamates the separate accounts into a single account; and
immediately after the amalgamation, the balance of the amalgamated account exceeds $1,200.
Section 18 empowers the Commissioner to amalgamate the separate accounts.
No interest if $1,200 limit avoided
If, because of the $1,200 limit referred to in subsection 49(2):
the total amount of interest that accrued to the separate accounts before the day of the amalgamation;
exceeds:
the total amount of interest that would have accrued to the amalgamated account if it were assumed that the amalgamated account had been in existence at all times since the earliest time at which any of the separate accounts was opened;
then, despite section 49, the excess interest is taken never to have accrued under that section.
Debit to amalgamated account
If excess interest has been credited in contravention of subsection (2), the Commissioner of Taxation must debit the amalgamated account by an amount equal to the amount of the credit.
Credit to Unallocated Interest Pool
The Unallocated Interest Pool is to be credited by the amount of a debit under subsection (3).
This Act’s bill:Second reading speech
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