Income Tax (Transitional Provisions) (Permanent Incapacity Benefits) Amendment Rules 2024 (F2024L01471)

Schedule 1   Amendments

Income Tax (Transitional Provisions) (Permanent Incapacity Benefits) Rules 2024

2   At the end of the instrument

Add:

6 Amendment of assessments for the 2023-24 income year - transitional rule for p ermanent incapacity benefits

(1) Under subsection 301-105(1) of the Act, this section prescribes matters of a transitional nature that relate to the 2023-24 income year.

(2) This section applies if:

(a) a superannuation benefit (the trigger benefit ) was paid to an individual in the 2020-21 income year or an earlier income year; and

(b) the Commissioner made an assessment for the income year for the individual before 4 December 2020; and

(c) the trigger benefit was paid to the individual because the individual 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 Commissioner made the assessment on the basis that the trigger benefit was a superannuation lump sum.

(3) The Commissioner cannot amend an assessment for the 2023-24 income year for the individual on the basis that a superannuation benefit paid to the individual is a superannuation income stream benefit if:

(a) the superannuation benefit was paid to the individual because the individual 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

(b) the Commissioner made the assessment on the basis that the superannuation benefit was a superannuation lump sum; and

(c) for the 2022-23 income year:

(i) a superannuation benefit (the 2022-23 benefit ) was paid to the individual because the individual 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

(ii) the Commissioner made an assessment for the individual on the basis that the 2022-23 benefit was a superannuation lump sum.

(4) Subsection (3) does not apply in any of these cases:

(a) if the Commissioner may amend the assessment in accordance with item 5 (fraud or evasion) or 6 (review or appeal) of the table in subsection 170(1) of the Income Tax Assessment Act 1936;

(b) if the amendment is made for the purpose of giving effect to a provision specified in the regulations for the purposes of paragraph 301-100(4)(b) of the Act.