72Contributions and benefit entitlements subject to taxation

72 Contributions and benefit entitlements subject to taxation

(1)  For the purpose of taxation of superannuation contributions under the law of the Commonwealth, the Commission is to treat –

(a) salary sacrifice contributions as concessional contributions; and

(b) member contributions that have been included in the assessable income of the Fund as concessional contributions; and

(c) member contributions that have not been included in the assessable income of the Fund as non-concessional contributions; and

(d) the element untaxed in the fund of a roll-over superannuation benefit as assessable income of the Fund; and

(e) the element untaxed in the fund of a benefit transferred under regulation 48(5) as assessable income of the Fund.

(2)  The Commission, having regard to the law of the Commonwealth, must –

(a) establish and maintain policies and administrative procedures in respect of the taxation of –

(i) superannuation contributions; and

(ii) superannuation benefits; and

(b) determine, from time to time –

(i) the proportion of a superannuation benefit that is to be treated by the Commission as an element untaxed in the fund for the purposes of the Income Tax Assessment Act 1997 of the Commonwealth; and

(ii) the proportion of a superannuation benefit that is to be treated by the Commission as an element taxed in the fund for the purposes of that Act; and

(iii) the proportion of a superannuation benefit that is to be treated by the Commission as a tax free component for the purposes of that Act.

(3)  The Commission, in accordance with the law of the Commonwealth, must –

(a) deduct from the following all amounts required to be paid as taxation under the law of the Commonwealth: