Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 294 - Transfer balance cap  

Subdivision 294-B - Transfer balance account  

Operative provisions

SECTION 294-25   Transfer balance credits  

294-25(1)    

The following table sets out when a credit arises in your *transfer balance account and the amount of the credit. The credit is called a transfer balance credit .

Credits in the transfer balance account
Item	If:	A credit of:	Arises:
1	just before 1 July 2017, you are the *retirement phase recipient of a *superannuation income stream	the *value, just before 1 July 2017, of the *superannuation interest that supports the superannuation income stream	on the later of: (a) 1 July 2017; and (b) if you are a reversionary beneficiary - the last day of the period of 12 months beginning on the day a *superannuation income stream benefit first becomes payable from the income stream
2	on a day (the starting day ) on or after 1 July 2017, you start to be the *retirement phase recipient of a *superannuation income stream	the *value on the starting day of the *superannuation interest that supports the superannuation income stream	(a) on the starting day, unless paragraph (b) applies; or (b) if you are a reversionary beneficiary - at the end of the period of 12 months beginning on the starting day
3	you have *excess transfer balance at the end of a day	your *excess transfer balance earnings for that day	at the start of the next day
4	a *transfer balance credit arises under section 294-55 because of a repayment of a limited recourse borrowing arrangement	the amount of the credit specified in section 294-55	at the time provided by section 294-55
5	a *transfer balance credit arises under regulations made for the purposes of this item	the amount of the credit worked out in accordance with the regulations	at the time specified in the regulations

Note 1:

The amount of the transfer balance credit is modified for certain capped defined benefit income streams: see Subdivision 294-D .

Note 2:

For the meaning of excess transfer balance earnings , see section 294-235 .

Note 3:

If a payment split applies to payments from the superannuation income stream, a debit arises under section 294-90 .

No crediting of earnings if determination issued

294-25(2)    
Despite item 3 of the table in subsection (1), no credit arises in your *transfer balance account under that item because of *excess transfer balance at the end of a day if the day is in the period:

(a) starting on the day the Commissioner makes an *excess transfer balance determination in respect of you; and

(b) ending on:

(i) unless subparagraph (ii) applies - the first day on which the sum of all *transfer balance debits arising in your *transfer balance account since the determination was issued equals or exceeds the *crystallised reduction amount; or

(ii) if a *transfer balance credit arises in your transfer balance account before the day mentioned in subparagraph (i) - the day on which that credit arises.

Note:

For provisions about excess transfer balance determinations, see Division 136 in Schedule 1 to the Taxation Administration Act 1953 .

Regulations may provide for exceptions

294-25(3)    

The regulations may provide that an item of the table in subsection (1) does not apply to a class of *superannuation income streams specified in the regulations.