Tax Laws Amendment (2009 Measures No. 2) Act 2009 (42 of 2009)
Schedule 1 Tax treatment of payments under financial claims scheme
Income Tax Assessment Act 1997
21 At the end of Division 306
Add:
306-25 Payments connected with financial claims scheme to RSAs
(1) This section applies if:
(a) a person is the holder of an *RSA (the old RSA ) of which an *ADI is the *RSA provider; and
(b) an entitlement of the person arises under Division 2AA (Financial claims scheme for account-holders with insolvent ADIs) of Part II of the Banking Act 1959 in connection with the old RSA; and
(c) either:
(i) the entitlement, so far as it relates to the old RSA, is met wholly or partly by the making of a payment to another RSA (the new RSA ) that the person is the holder of (whether or not the new RSA was established under section 16AH of the Banking Act 1959); or
(ii) a liquidator of the ADI pays a distribution from the liquidation of the ADI, so far as the distribution is attributable to the old RSA, to another RSA (also the new RSA ) that the person is the holder of (whether or not the new RSA was established under section 16AR of the Banking Act 1959).
(2) This Part (except this section), and the other provisions of this Act (except this section) so far as they relate to this Part, apply in relation to the payment to the new RSA as if:
(a) the payment were made from the old RSA to the new RSA; and
(b) the entity that made the payment (rather than the *ADI) were the *RSA provider of the old RSA.
Note: The effects of this include:
(a) the payment is a superannuation member benefit of the person (because of sections 307-5 and 307-15); and
(b) the payment is a superannuation lump sum under Subdivision 307-B (unless regulations prevent this); and
(c) the payment is a roll-over superannuation benefit under section 306-10 (unless regulations prevent this); and
(d) reporting obligations (such as those in section 390-10 in Schedule 1 to the Taxation Administration Act 1953) apply to the entity that made the payment as if it were the RSA provider of the old RSA.
(3) However, for the purposes of section 307-125, determine the *value of the *superannuation interest, and the amount of each of the *tax free component and the *taxable component of the interest:
(a) when the entitlement arose; or
(b) if a *superannuation income stream benefit had been paid from the old RSA before that time - at the time the relevant *superannuation income stream commenced.
(4) Subsection (3) has effect despite:
(a) subsection 307-125(3) (as it applies because of subsection (2) of this section); and
(b) paragraph 307-125(3)(a) of the Income Tax (Transitional Provisions) Act 1997.
(5) This section has effect despite:
(a) Division 253; and
(b) Division 21 in Schedule 1 to the Taxation Administration Act 1953.