Income Tax Assessment Act 1997

Part 3-35 heading amended by No 169 of 2001.

Part 3-35 inserted by No 89 of 2000.

Div 320 inserted by No 89 of 2000.

S 320-246(1) amended by No 81 of 2016, s 3 and Sch 8 items 20 - 23, by substituting " that are currently *RP superannuation income stream benefits of the fund " for " that are currently payable by the fund " in para (a), " that are currently *RP superannuation income stream benefits of complying superannuation funds " for " that are currently payable by complying superannuation funds " in para (b)(i), inserting " that is in the *retirement phase " in para (e)(ii) and inserting para (ea), effective 1 January 2017 and applicable in relation to the 2017-18 income year and later income years.

S 320-246(1) amended by No 19 of 2010, s 3 and Sch 3 item 4, by substituting para (e)(i) to (iii), applicable to the 2007-08 income year and later income years.

Para (e)(i) to (iii) formerly read:

(i) was purchased on or before 9 December 1987 and was not purchased wholly or partly with a *roll-over superannuation benefit; or

(ii) satisfies whichever of the conditions in subsection (3) are applicable and was purchased on or before 9 December 1987 wholly or partly with a roll-over superannuation benefit; or

(iii) satisfies whichever of the conditions in subsection (3) are applicable and was purchased after 9 December 1987; or

S 320-246(1) amended by No 19 of 2010, s 3 and Sch 3 item 1, by substituting " whichever of the conditions in subsection (3) are applicable " for " the conditions in subsections (3), (4) and (5) " in para (e)(ii) and (iii), effective 30 June 2000.

[ CCH Note: The amendments to s 320-246(1)(e) by No 15 of 2007, s 3 and Sch 1 items 237 to 239 were repealed by No 19 of 2010, s 3 and Sch 3 item 9, applicable to the 2007-08 income year and later income years. Items 237 to 239 substituted " a *roll-over superannuation benefit " for " a rolled-over amount " in para (e)(i) and " a roll-over superannuation benefit " for " a rolled-over amount " in para (e)(ii) and inserted para (e)(iv). Para (e)(iv) formerly read:

(iv) satisfies the conditions in subsections (3), (4) and (5) and was purchased on or after 1 July 2007; or

No 19 of 2010, s 3 and Sch 3 item 12 contains the following provision relating to the repeals:

Effect of repeal  
12
To avoid doubt, the following provisions are taken never to have had effect:

(a) item 30 of the table in item 214 of Schedule 7 to the Tax Laws Amendment (2006 Measures No 2) Act 2006 ;

(b) items 237, 238, 239 and 241 of Schedule 1, and item 51 of Schedule 3, to the Superannuation Legislation Amendment (Simplification) Act 2007 .

Note 1:

The provision mentioned in paragraph (a) is repealed by Division 2 of Part 1 of this Schedule.

Note 2:

The provisions mentioned in paragraph (b) are repealed by Division 2 of Part 2 of this Schedule.

S 320-246(1) amended by No 15 of 2007, s 3 and Sch 1 items 235 and 236, by substituting para (a), substituting " liabilities (contingent or not) in respect of *superannuation income stream benefits that are currently payable by " for " current pension liabilities (within the meaning of Part IX of the Income Tax Assessment Act 1936 ) of " in para (b)(i), applicable to the 2007-2008 income year and later years. Para (a) formerly read:

(a) that is held by the trustee of a *complying superannuation fund and provides solely for the discharge of the current pension liabilities (within the meaning of Part IX of the Income Tax Assessment Act 1936 ) of the fund; or

S 320-246(1) amended by No 83 of 2004.

S 320-246(2) repealed by No 15 of 2007, s 3 and Sch 1 item 240, applicable to the 2007-2008 income year and later years. S 320-246(2) formerly read:

320-246(2)
In subsection (1), a rolled-over amount has the same meaning as it has under section 27A of the Income Tax Assessment Act 1936 .

S 320-246(3) amended by No 19 of 2010, s 3 and Sch 3 items 5 to 8, by substituting " subparagraph (1)(e)(iii) " for " subparagraphs (1)(e)(ii) and (iii) " , substituting " section 27H " for " section 27A " in column 1 of table item 1, substituting " purchase price (within the meaning of that section), reduced by the sum of the deductible amounts excluded from assessable income under that section " for " reduced purchase price (within the meaning of that section) " in column 2 of table item 2 and substituting " purchase price (within the meaning of that section), reduced by the sum of the deductible amounts excluded from assessable income under that section " for " reduced purchase price (within the meaning of that section) " in column 2 of table item 3, applicable to the 2007-08 income year and later income years.

S 320-246(3) substituted by No 19 of 2010, s 3 and Sch 3 item 2, effective 30 June 2000. S 320-246(3) formerly read:

320-246(3)
An *immediate annuity satisfies the conditions in this subsection if it is payable until the later of:

(a) the death of a person (or the death of the last to die of 2 or more persons); or

(b) the end of a fixed term.

S 320-246(4) repealed by No 19 of 2010, s 3 and Sch 3 item 2, effective 30 June 2000. S 320-246(4) formerly read:

320-246(4)
An *immediate annuity satisfies the conditions in this subsection if the contract under which it is payable does not permit:

(a) the total amount payable for its commutation to exceed:

(i) if the annuity is a *superannuation income stream that was purchased on or after 1 July 2007 - the amount of the *taxable component of the *superannuation interest supporting the superannuation income stream; or

(ii) if subparagraph (i) does not apply - its reduced purchase price (within the meaning of former section 27A of the Income Tax Assessment Act 1936 just before the commencement of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007 ).

(b) any payment of its residual capital value (within the meaning of that section) to exceed its purchase price (within the meaning of that section).

[ CCH Note: The amendment to s 320-246(4) by No 15 of 2007, s 3 and Sch 1 item 241 was repealed by No 19 of 2010, s 3 and Sch 3 item 9, applicable to the 2007-08 income year and later income years. Item 241 substituted para (a), applicable to the 2007-2008 income year and later years. Para (a) formerly read:

(a) the total amount payable for its commutation to exceed its reduced purchase price (within the meaning of section 27A of the Income Tax Assessment Act 1936 ); and

No 19 of 2010, s 3 and Sch 3 item 12 contains the following provision relating to the repeals:

Effect of repeal  
12
To avoid doubt, the following provisions are taken never to have had effect:

(a) item 30 of the table in item 214 of Schedule 7 to the Tax Laws Amendment (2006 Measures No 2) Act 2006 ;

(b) items 237, 238, 239 and 241 of Schedule 1, and item 51 of Schedule 3, to the Superannuation Legislation Amendment (Simplification) Act 2007 .

Note 1:

The provision mentioned in paragraph (a) is repealed by Division 2 of Part 1 of this Schedule.

Note 2:

The provisions mentioned in paragraph (b) are repealed by Division 2 of Part 2 of this Schedule.

S 320-246(5) repealed by No 19 of 2010, s 3 and Sch 3 item 2, effective 30 June 2000. S 320-246(5) formerly read:

320-246(5)
An *immediate annuity satisfies the conditions in this subsection if there is no unreasonable deferral of the payments of the annuity, having regard to:

(a) to the extent to which the payments depend on the returns of the investment of the assets of the *life insurance company paying the annuity - when the payments are made and when those returns are *derived; and

(b) to the extent to which the payments do not depend on those returns - the relative sizes of the payments from year to year; and

(c) any other relevant factors.

S 320-246 inserted by No 83 of 2004.