Superannuation Legislation Amendment Act 2010 (117 of 2010)

Schedule 2   Disability insurance premiums paid by superannuation funds

Part 2   2007-08 to 2010-11 income years

Division 1   Main amendments

Income Tax (Transitional Provisions) Act 1997

5   After section 295-465

Insert:

295-466 Complying funds - deductions for insurance premiums for disability superannuation benefits

Scope

(1) This section applies if:

(a) a complying superannuation fund pays a premium for an insurance policy during:

(i) the 2007-08 income year; or

(ii) the 2008-09 income year; or

(iii) the 2009-10 income year; or

(iv) the 2010-11 income year; and

(b) the policy is (wholly or partly) for current or contingent liabilities of the fund to provide superannuation benefits for members of the fund (whether the policy covers the whole or parts of the liabilities).

Note: For premiums paid during the 2004-05 to 2006-07 income years, see Part 1 of Schedule 2 to the Superannuation Legislation Amendment Act 2010.

Entitlement to deduction

(2) Treat the superannuation benefits mentioned in paragraph (1)(b) as being disability superannuation benefits , to the extent that:

(a) the superannuation benefits are conditional on the disability of the members mentioned in that paragraph; and

(b) the disability is described as a permanent disability in regulations made for the purposes of this section.

Note: Other events might have to occur after the event of the disability of the members before the fund pays the benefits to the members. For example, the members might have to satisfy a condition of release of benefits specified in a standard made under paragraph 31(2)(h) of the Superannuation Industry (Supervision) Act 1993, such as by reaching a certain age.

(3) Subsection (2) applies:

(a) for the purposes of applying:

(i) subsection 295-465(1) of the Income Tax Assessment Act 1997; and

(ii) paragraph 295-460(b) of that Act, to the extent that it relates to subsection 295-465(1) of that Act;

to the payment mentioned in paragraph (1)(a) of this section; and

(b) without limiting subsection 295-465(1) and paragraph 295-460(b) of that Act.

Amendment of assessments

(4) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of this section; and

(b) the amendment is made within 2 years after that commencement; and

(c) the amendment is made for the purpose of giving effect to this section.