| LEGAL DEFINITIONS INVOLVED IN THE PERSONAL CONTRIBUTIONS TO SUPER FUNDS |
Consider : Regulation 7.04 of the S. I. S. Regulations provides that a regulated superannuation fund can accept contributions for a member who is under 65 only when the contributions are mandated employer contributions or the member has at any time in the period of two years immediately preceding the date of acceptance engaged in full time or part-time gainful employment. Regulation 1 defines "part-time" gainful employment, as being gainfully employed for at least 10 hours and less than 30 hours, each week;" Section 82AAT of the 1936 ITAA provides for deductions ($3,000 plus 75% of rest of contribution up to aged based limits) for contributions by ‘eligible persons’ to complying funds. Eligible persons are defined in Section 82AAS(2) as, in effect, any person who is not supported by an employer sponsored fund, but section 82AAS(3) allows employer benefits to be disregarded where income from a salary or wage does not exceed 10% of assessable income (the ‘10% rule’). If a home carer has income from a Phillips Trust of $20,000 (and investment income) and earns $1,000 working (eg. during the end of the year rush), working for at least two weeks at over 10 hours per week what is the result? Has not the home carer been part-time gainfully employed within 2 years? Attackable under Part IVA, Was the predominant purpose (post Ralph ‘ principal effect’) of the few weeks employment a tax benefit. What is artificial or contrived about genuine part- time work? The words ‘each week’ perhaps could indicate more than one week, at how many weeks would the line be drawn? – 52 weeks, 48, 30, 20, 10, 5, 52 weeks would make the legislation totally inoperable. Why would any number beyond 2 weeks be necessary to fall within the definitions. The sensible meaning of ‘each week’ is ‘each week of employment’ (no matter how many weeks are involved – even one week). George Gell |
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