Income Tax Assessment (1997 Act) Regulations 2021
CHAPTER 3 - SPECIALIST LIABILITY RULES
Division 294 - Transfer balance cap
Subdivision 294-C - Transfer balance debits
SECTION 294-80.02A DEBIT IN TRANSFER BALANCE ACCOUNT - COMMUTATION OF CERTAIN CAPPED DEFINED BENEFIT INCOME STREAMS
294-80.02A(1)
For the purposes of item 8 of the table in subsection
294-80(1)
of the Act, a transfer balance debit arises under this section in your transfer balance account if:
(a) you receive a superannuation lump sum because a capped defined benefit income stream (the commuted stream ) covered by any of items 1 to 7 of the table in subsection 294-130(1) of the Act is commuted, in full or in part, on or after 1 July 2017; and
(b)
the superannuation lump sum is transferred directly to the purchase of a superannuation income stream (the
commenced stream
) that is covered by an item of the table in subsection
294-25.02(1)
of this instrument and is in the retirement phase.
294-80.02A(2)
The amount of the debit is the amount worked out under item 1 of the table in subsection
294-80(1)
of the Act (as it applies in relation to a capped defined benefit income stream under section
294-145
of the Act) for the commuted stream as if that item applied to the commuted stream.
294-80.02A(3)
The debit arises at the later of:
(a) immediately after the commencement of the Treasury Laws Amendment (Allowing Commutation of Certain Income Streams) Regulations 2022 ; and
(b)
immediately after the commutation occurs.
294-80.02A(4)
For the purposes of subsection
294-80(3)
of the Act, item 1 of the table in subsection
294-80(1)
of the Act does not apply to capped defined benefit income streams that are commuted in circumstances resulting in transfer balance debits arising under this section.
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