Income Tax Assessment Amendment (Transfer Balance Account Value for Certain Superannuation Income Streams) Regulations 2024 (F2024L01023)

Schedule 1   Amendments

Income Tax Assessment (1997 Act) Regulations 2021

3   At the end of section 294-135.01

Add:

(6) This subsection covers a superannuation interest in a superannuation plan if:

(a) the superannuation interest supports an income stream that is, or was at any time, a superannuation income stream prescribed by section 294-130.01 to which subsection 294-130.01(7) applies; and

(b) a superannuation benefit was paid from the superannuation income stream to a person, whether before, at or after the time the Income Tax Assessment Amendment (Transfer Balance Account Value for Certain Superannuation Income Streams) Regulations 2024 commenced (the commencement time ); and

Note: The Income Tax Assessment Amendment (Transfer Balance Account Value for Certain Superannuation Income Streams) Regulations 2024 inserted this subsection.

(c) the superannuation benefit was paid to the person because the person satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and

(d) the superannuation provider in relation to the superannuation plan had not given the Commissioner, before the commencement time, a statement under subsection 390-5(1) in Schedule 1 to the Taxation Administration Act 1953 in relation to the superannuation interest indicating that a transfer balance credit arose in the person's transfer balance account because of the superannuation income stream.

(7) For the purposes of subsection 294-135(4) of the Act, the special value , at a particular time, of a superannuation interest covered by subsection (6) of this section is the lesser of the following amounts:

(a) the amount worked out in respect of that time under subsection 294-135(2) of the Act;

(b) if there is a particular period throughout which superannuation income stream benefits are payable under the income stream mentioned in paragraph (6)(a) of this section - the amount worked out in respect of that time under subsection 294-135(3) of the Act.

(8) For the purposes of paragraphs (7)(a) and (b) of this section, treat:

(a) the reference in subsection 294-135(2) of the Act to a capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294-130(1) of the Act; and

(b) the reference in subsection 294-135(3) of the Act to a capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294-130(1) of the Act;

as instead being references to the income stream mentioned in paragraph (6)(a) of this section.

(9) For the purposes of paragraph (7)(b) of this section, if:

(a) superannuation income stream benefits are payable under the income stream mentioned in paragraph (6)(a) for a fixed term; but

(b) despite that fixed term, the superannuation income stream benefits may cease to be payable before the end of the fixed term in certain circumstances;

treat the superannuation income stream benefits as being payable under the income stream throughout the fixed term.