Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 (81 of 2016)

Schedule 1   Transfer balance cap

Part 1   Transfer balance cap

Income Tax Assessment Act 1997

4   After Division 293

Insert:

Division 294 - Transfer balance cap

Table of Subdivisions

Guide to Division 294

294-A Object of this Division

294-B Transfer balance account

294-C Transfer balance debits

294-D Modifications for certain defined benefit income streams

294-E Modifications for death benefits dependants who are children

294-F Excess transfer balance tax

Guide to Division 294

294-1 What this Division is about

There is a cap on the total amount you can transfer into the retirement phase of superannuation (where earnings are exempt from taxation).

Credits are added to a transfer balance account when you transfer amounts.

If the balance in your account exceeds the cap, you will be required to remove the excess from the retirement phase, and you will be liable to pay excess transfer balance tax.

Note: Division 136 in Schedule 1 to the Taxation Administration Act 1953 contains rules about excess transfer balance determinations and commutation authorities.

Subdivision 294-A - Object of this Division

Table of sections

Operative provisions

294-5 Object of this Division

Operative provisions

294-5 Object of this Division

The object of this Division is to limit the total amount of an individual's *superannuation income streams that receive an earnings tax exemption.

Subdivision 294-B - Transfer balance account

Guide to Subdivision 294-B

294-10 What this Subdivision is about

This Subdivision creates a transfer balance account for you, and credits it, if you have a superannuation income stream in the retirement phase.

It also provides for a transfer balance cap and identifies when you have excess transfer balance.

Table of sections

Operative provisions

294-15 When you have a transfer balance account

294-20 Meaning of retirement phase recipient

294-25 Transfer balance credits

294-30 Excess transfer balance

294-35 Your transfer balance cap

294-40 Proportionally indexed transfer balance cap

294-45 Transfer balance account ends

294-50 Assume pension rules and commutation authorities complied with

Operative provisions

294-15 When you have a transfer balance account

(1) You have a transfer balance account if you are, or have at any time been, the *retirement phase recipient of a *superannuation income stream.

(2) You start to have the *transfer balance account on the later of:

(a) 1 July 2017; and

(b) the day you first start to be a *retirement phase recipient of a *superannuation income stream.

294-20 Meaning of retirement phase recipient

(1) You are the retirement phase recipient of a *superannuation income stream at a time if:

(a) the superannuation income stream is in the *retirement phase at that time; and

(b) a *superannuation income stream benefit from the superannuation income stream is payable to you at that time.

(2) You are also the retirement phase recipient of a *superannuation income stream at a time if:

(a) the superannuation income stream is in the *retirement phase at that time; and

(b) the superannuation income stream is a *deferred superannuation income stream; and

(c) a *superannuation income stream benefit from the superannuation income stream will be payable to you after that time.

294-25 Transfer balance credits

(1) The following table sets out when a credit arises in your *transfer balance account and the amount of the credit. The credit is called a transfer balance credit .

Note 1: The amount of the transfer balance credit is modified for certain capped defined benefit income streams: see Subdivision 294-D.

Note 2: For the meaning of excess transfer balance earnings , see section 294-235.

Note 3: If a payment split applies to payments from the superannuation income stream, a debit arises under section 294-90.

No crediting of earnings if determination issued

(2) Despite item 3 of the table in subsection (1), no credit arises in your *transfer balance account under that item because of *excess transfer balance at the end of a day if the day is in the period:

(a) starting on the day the Commissioner makes an *excess transfer balance determination in respect of you; and

(b) ending on:

(i) unless subparagraph (ii) applies - the first day on which the sum of all *transfer balance debits arising in your *transfer balance account since the determination was issued equals or exceeds the *crystallised reduction amount; or

(ii) if a *transfer balance credit arises in your transfer balance account before the day mentioned in subparagraph (i) - the day on which that credit arises.

Note: For provisions about excess transfer balance determinations, see Division 136 in Schedule 1 to the Taxation Administration Act 1953.

294-30 Excess transfer balance

(1) You have excess transfer balance at a particular time if, at that time, the *transfer balance in your *transfer balance account exceeds your *transfer balance cap at that time. The amount of the excess transfer balance is the amount of the excess.

Note: There is a modification for certain capped defined benefit income streams: see Subdivision 294-D.

(2) The transfer balance in your *transfer balance account at a time equals:

(a) the sum of the *transfer balance credits in the account at that time; less

(b) the sum of the *transfer balance debits (if any) in the account at that time.

Note 1: For transfer balance debits , see Subdivision 294-C.

Note 2: There is no consequence for having a negative transfer balance.

294-35 Your transfer balance cap

(1) Your transfer balance cap for the *financial year in which you first start to have a *transfer balance account is equal to the *general transfer balance cap for that financial year.

Note: The amount of the transfer balance cap is modified for child recipients: see Subdivision 294-E.

(2) Your transfer balance cap for a later *financial year is equal to your transfer balance cap for the previous year, subject to section 294-40 (which is about proportional indexation).

(3) The general transfer balance cap is:

(a) for the 2017-2018 *financial year - $1,600,000; or

(b) for the 2018-2019 financial year or a later financial year - the amount worked out by indexing annually the amount mentioned in paragraph (a).

Note: Subdivision 960-M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap: see section 960-285.

294-40 Proportionally indexed transfer balance cap

(1) This section applies to increase your transfer balance cap for a *financial year (other than the financial year in which you first start to have a *transfer balance account) if:

(a) the *general transfer balance cap is increased as a result of indexation for the financial year; and

(b) at no time before the start of that financial year has the *transfer balance in your transfer balance account at the end of a day exceeded your transfer balance cap.

(2) Your transfer balance cap is increased for the *financial year by the amount worked out using the following formula:

where:

indexation increase means the amount by which the *general transfer balance cap for the *financial year increased as a result of indexation.

unused cap percentage is worked out by:

(a) identifying the highest *transfer balance in your *transfer balance account at the end of any day up to the end of the previous *financial year; and

(b) identifying the day on which the transfer balance account had that transfer balance at the end of the day, or, if your transfer balance account had that transfer balance at the end of more than one day, the earliest of those days; and

(c) expressing the transfer balance identified in paragraph (a) as a percentage (rounded down to the nearest whole number) of your *transfer balance cap on the day identified in paragraph (b); and

(d) subtracting the result of paragraph (c) from 100%.

(3) However, if the highest *transfer balance mentioned in paragraph (a) of the definition of unused cap percentage in subsection (2) is less than nil, that unused cap percentage is taken to be 100%.

294-45 Transfer balance account ends

The *transfer balance account ceases when the *retirement phase recipient dies.

294-50 Assume pension rules and commutation authorities complied with

(1) For the purposes of working out a matter mentioned in subsection (2) at a time:

(a) assume that an income stream will properly comply with any rules or standards under which it is, or is purported to be, provided; and

(b) disregard subsection 307-80(4).

(2) The matters are:

(a) whether you are the *retirement phase recipient of a *superannuation income stream; and

(b) whether a *transfer balance credit arises in your *transfer balance account.

Subdivision 294-C - Transfer balance debits

Guide to Subdivision 294-C

294-75 What this Subdivision is about

A debit arises in your transfer balance account when superannuation income streams that were previously credited (because they receive the earnings tax exemption) are reduced (other than by draw-downs or investment losses) or lose the earnings tax exemption.

A debit also arises in your transfer balance account when you make a contribution relating to a structured settlement or personal injury, or where certain events occur that result in you having reduced superannuation.

Table of sections

Operative provisions

294-80 Transfer balance debits

294-85 Certain events that result in reduced superannuation

294-90 Payment splits

294-95 Payment splits - no double debiting

Operative provisions

294-80 Transfer balance debits

(1) The following table sets out when a debit arises in your *transfer balance account and the amount of the debit. The debit is called a transfer balance debit .

Structured settlement contributions

(2) Each of the following is a structured settlement contribution in respect of you:

(a) a contribution to a *complying superannuation plan in respect of you that is covered under section 292-95 (about structured settlements or orders for personal injuries);

(b) a contribution to a complying superannuation plan in respect of you that would be covered under section 292-95 if:

(i) the section applied to contributions made before 10 May 2006; and

(ii) paragraphs 292-95(1)(b) and (d) were disregarded.

294-85 Certain events that result in reduced superannuation

(1) A *transfer balance debit arises in your *transfer balance account if:

(a) subsection (2) or (5) provides that the debit arises; and

(b) you notify the Commissioner in the *approved form that the debit has arisen.

Fraud or dishonesty

(2) A debit arises if:

(a) a loss is suffered by a *superannuation income stream provider; and

(b) as a result, the *value of the *superannuation interest that supports a *superannuation income stream of which you are the *retirement phase recipient is reduced; and

(c) the loss is a result of fraud or dishonesty; and

(d) an individual has been convicted of an offence involving that fraud or dishonesty.

(3) The amount of the debit equals the amount by which the *value of the *superannuation interest is reduced as a result of the loss.

(4) The debit arises at the time of the loss.

Payments under section 139ZQ of the Bankruptcy Act 1966

(5) A debit arises if:

(a) an amount is paid in compliance with a notice given under section 139ZQ of the Bankruptcy Act 1966; and

(b) as a result, the *value of a *superannuation interest that supports a *superannuation income stream of which you are the *retirement phase recipient is reduced.

(6) The amount of the debit is the amount paid to the trustee in bankruptcy.

(7) The debit arises at the time of the payment.

294-90 Payment splits

(1) A *transfer balance debit arises in your *transfer balance account if:

(a) subsection (2) provides that the debit arises; and

(b) the Commissioner is notified in the *approved form that the debit has arisen.

Payment splits

(2) A debit arises if:

(a) a *superannuation interest is subject to a *payment split but remains an interest of the *member spouse; and

(b) the superannuation interest supports a *superannuation income stream that is in the *retirement phase; and

(c) as a result of the payment split, a proportion of all *superannuation income stream benefits from the income stream is to be paid to a *non-member spouse; and

(d) as a result, the member spouse and the non-member spouse are both *retirement phase recipients of the superannuation income stream.

(3) The amount of the debit is:

(a) if you are the *member spouse - the proportion mentioned in paragraph (2)(c); and

(b) if you are the *non-member spouse - the remaining proportion;

of the *value, on the day the debit arises, of the *superannuation interest that supports the *superannuation income stream affected by the *payment split.

(4) The debit arises at the later of:

(a) the operative time (within the meaning of Part VIIIB of the Family Law Act 1975) for the *payment split; and

(b) at the start of the day you first start to have a *transfer balance account.

294-95 Payment splits - no double debiting

If a *transfer balance debit, worked out by reference to a particular proportion, arises in your *transfer balance account because a *superannuation interest is subject to a *payment split, each of the following debits arising in your account at a later time in respect of the same interest is to be reduced by the same proportion:

(a) a debit that arises under item 1 of the table in subsection 294-80(1) (about commutations), but only if the commuted income stream is a *capped defined benefit income stream;

(b) a debit that arises under item 3 of that table (about events that result in reduced superannuation);

(c) a debit that arises under item 5 or 6 of that table (about income streams that stop being in the retirement phase).

Subdivision 294-D - Modifications for certain defined benefit income streams

Guide to Subdivision 294-D

294-120 What this Subdivision is about

Certain defined benefit lifetime pensions that are subject to commutation restrictions cannot result in excess transfer balance (instead, Subdivision 303-A applies to the superannuation income stream benefits).

Certain commutation-restricted income streams started before 1 July 2017 are covered by the same modification.

Table of sections

Operative provisions

294-125 When this Subdivision applies

294-130 Meaning of capped defined benefit income stream

294-135 Transfer balance credit - special rule for capped defined benefit income streams

294-140 Excess transfer balance - special rule for capped defined benefit income streams

294-145 Transfer balance debits - special rules for capped defined benefit income streams

Operative provisions

294-125 When this Subdivision applies

This Subdivision applies to you if you are the *retirement phase recipient of a *capped defined benefit income stream.

294-130 Meaning of capped defined benefit income stream

(1) A *superannuation income stream is a capped defined benefit income stream if it is:

(a) covered by an item of the following table; and

(b) if it is covered by any of items 2 to 7 of that table - it is in the *retirement phase just before 1 July 2017.

(2) A *superannuation income stream is also a capped defined benefit income stream if the income stream is prescribed by the regulations for the purposes of this subsection.

294-135 Transfer balance credit - special rule for capped defined benefit income streams

(1) Section 294-25 applies in relation to a *capped defined benefit income stream as if a reference in that section to the *value of a *superannuation interest were a reference to the *special value of the superannuation interest.

Meaning of special value - lifetime products

(2) The special value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294-130(1), is the amount worked out using the formula:

where:

annual entitlement is worked out by:

(a) dividing the amount of the first *superannuation income stream benefit you are entitled to receive from the income stream just after that time by the number of whole days to which that benefit relates; and

(b) multiplying the result by 365.

Meaning of special value - life expectancy and market linked products

(3) The special value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294-130(1), is the amount worked out using the formula:

where:

annual entitlement has the same meaning as in subsection (2) of this section.

remaining term means the number of years remaining at that time in the period throughout which *superannuation income stream benefits are payable under the income stream, rounded up to the next whole number.

Regulations

(4) The regulations may specify a method for determining the special value of a *superannuation interest that supports a *superannuation income stream prescribed by regulations made for the purposes of subsection 294-130(2).

294-140 Excess transfer balance - special rule for capped defined benefit income streams

(1) Despite section 294-30, you have excess transfer balance at a particular time if, at that time, the *transfer balance in your *transfer balance account:

(a) exceeds your *transfer balance cap at that time; and

(b) exceeds your capped defined benefit balance from subsection (3) of this section at that time.

(2) The amount of the excess transfer balance is the lesser of the 2 excesses.

Note: For modifications of the tax treatment of benefits paid from capped defined benefit income streams, see Subdivision 303-A.

Your capped defined benefit balance

(3) You have an amount under this subsection (a capped defined benefit balance )at a timeequal to:

(a) the sum of the *transfer balance credits in your *transfer balance account at that time in respect of *capped defined benefit income streams; less

(b) the sum of the *transfer balance debits (if any) in your transfer balance account at that time in respect of capped defined benefit income streams.

294-145 Transfer balance debits - special rules for capped defined benefit income streams

Debit for commutation

(1) Item 1 of the table in subsection 294-80(1) applies in relation to a *capped defined benefit income stream as if the reference in column 2 of that item to the amount of the *superannuation lump sum were a reference to:

(a) for a commutation in full - the *debit value, just before the superannuation lump sum is paid, of the *superannuation interest that supports the capped defined benefit income stream; or

(b) for a commutation in part - the debit value mentioned in paragraph (a), multiplied by the fraction:

where:

SV just after commutation means the *special value, just after the *superannuation lump sum is paid, of the *superannuation interest that supports the *capped defined benefit income stream.

SV just before commutation means the *special value, just before the *superannuation lump sum is paid, of the *superannuation interest that supports the *capped defined benefit income stream.

Debit for events that result in reduced superannuation

(2) Item 3 of the table in subsection 294-80(1) (about events that result in reduced superannuation) applies in relation to a *capped defined benefit income stream as if the amount of the debit provided for in section 294-85 was the *debit value, just before the loss or payment reduces the *value of the *superannuation interest that supports the capped defined benefit income stream, multiplied by the amount worked out using the following formula:

where:

SV just after event means the *special value, worked out just after the loss or payment reduces the *value of the *superannuation interest that supports the *capped defined benefit income stream.

SV just before event means the *special value, worked out just before the loss or payment reduces the *value of the *superannuation interest that supports the *capped defined benefit income stream.

Debit for payment split

(3) Item 4 of the table in subsection 294-80(1) (about a debit for a payment split) applies in relation to a *capped defined benefit income stream as if the reference in section 294-90 to the *value of the *superannuation interest were a reference to the *debit value of the superannuation interest.

Debits for loss of earnings exemption

(4) Items 5 and 6 of the table in subsection 294-80(1) apply in relation to an income stream that is, or was, a *capped defined benefit income stream as if the reference in the item to the *value of a *superannuation interest were a reference to the *debit value of the superannuation interest.

Meaning of debit value

(5) The debit value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294-130(1), is:

(a) the amount of the *transfer balance credit that arose in your *transfer balance account in respect of the income stream; less

(b) the amount of any *transfer balance debits (apart from debits arising under item 4 of the table in subsection 294-80(1)) that have arisen in your transfer balance account in respect of the income stream before that time.

(6) The debit value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294-130(1) is the *special value of the interest at that time.

Regulations

(7) The regulations may specify a method for determining the debit value of a *superannuation interest that supports a *superannuation income stream prescribed by regulations made for the purposes of subsection 294-130(2).

Subdivision 294-E - Modifications for death benefits dependants who are children

Guide to Subdivision 294-E

294-170 What this Subdivision is about

If you are a death benefits dependant, and a child, you are not required to use your retirement transfer balance cap to receive a death benefits income stream.

However, there is a cap on the total amount of your death benefits income streams that receives the earnings tax exemption.

This cap is based on the deceased's superannuation interests in the retirement phase, or, if the deceased did not have any superannuation interests in the retirement phase, on the transfer balance cap.

Table of sections

Operative provisions

294-175 When this Subdivision applies

294-180 Transfer balance account ends

294-185 Transfer balance cap - special rule for child recipient

294-190 Cap increment - child recipient just before 1 July 2017

294-195 Cap increment - child recipient on or after 1 July 2017, deceased had no transfer balance account

294-200 Cap increment - child recipient on or after 1 July 2017, deceased had transfer balance account

Operative provisions

294-175 When this Subdivision applies

(1) This Subdivision applies to you if you are a *child recipient of a *superannuation income stream.

(2) You are a child recipient of a *superannuation income stream if:

(a) because of the death of a person, you are a *retirement phase recipient of the superannuation income stream; and

(b) you are a *child, and a *death benefits dependant, of the deceased; and

(c) you are covered by paragraph 6.21(2A)(b) of the Superannuation Industry (Supervision) Regulations 1994 or paragraph 4.24(3A)(b) of the Retirement Savings Accounts Regulations 1997 (which are about children who are under age 18, or under age 25 and financially dependent or who have a disability).

294-180 Transfer balance account ends

(1) Despite sections 294-15 and 294-45, your *transfer balance account ceases at a time if:

(a) just before that time, you were a *child recipient of one or more *superannuation income streams; and

(b) just after that time, you are no longer a child recipient of any superannuation income stream; and

(c) no *transfer balance credits arose in the transfer balance account in respect of a superannuation income stream of which you were a *retirement phase recipient, but not a child recipient.

(2) If you again start to have a *transfer balance account at a later time, this Division applies in relation to that later transfer balance account as if it were the only transfer balance account you have had.

294-185 Transfer balance cap - special rule for child recipient

(1) Despite section 294-35, your transfer balance cap on a day is the sum of the cap increments that have arisen under this Subdivision on and before that day.

Note: Your transfer balance cap is not worked out on a financial year basis and it is not indexed.

(2) However, if there are one or more *superannuation income streams of which you are, on that day, a *retirement phase recipient but not a *child recipient, your transfer balance cap on that day is the sum of:

(a) the sum of the cap increments that have arisen under this Subdivision on and before that day; and

(b) your transfer balance cap for the *financial year in which the day falls, worked out disregarding:

(i) any cap increments that arise under this Subdivision; and

(ii) any *transfer balance credits or *transfer balance debits that have arisen in your *transfer balance account in respect of superannuation income streams of which you are a child recipient.

Note: Paragraph (b) is the transfer balance cap you would have if you were not a child recipient of any income stream. Disregarding credits, debits and cap increments allows this cap to be indexed appropriately under section 294-40 (which is about proportional indexation).

294-190 Cap increment - child recipient just before 1 July 2017

(1) A cap increment arises if, just before 1 July 2017, you are the *child recipient of a *superannuation income stream.

(2) The amount of the cap increment is the *general transfer balance cap.

(3) The cap increment arises on 1 July 2017.

294-195 Cap increment - child recipient on or after 1 July 2017, deceased had no transfer balance account

(1) A cap increment arises if:

(a) on a day (the starting day ) on or after 1 July 2017, you start to be the *child recipient of a *superannuation income stream; and

(b) the deceased did not have a *transfer balance account just before death.

(2) The amount of the cap increment is:

(a) the *general transfer balance cap, unless paragraph (b) applies; or

(b) if you are not the only person to receive a *superannuation death benefit because of the death of the person - the proportion of the general transfer balance cap that corresponds to your share of the deceased's *superannuation interests.

(3) The cap increment arises on the starting day.

294-200 Cap increment - child recipient on or after 1 July 2017, deceased had transfer balance account

(1) A cap increment arises if:

(a) on a day (the starting day ) on or after 1 July 2017, you start to be the *child recipient of a *superannuation income stream; and

(b) the deceased had a *transfer balance account just before death.

Income stream fully funded by deceased's retirement phase interests

(2) If the *superannuation interest that supports the *superannuation income stream is wholly attributable to one or more superannuation interests of the deceased that were in the *retirement phase, the amount of the cap increment equals the amount of the *transfer balance credit that arises in your *transfer balance account in respect of the *superannuation income stream.

Income stream fully funded by deceased's accumulation phase interests

(3) If the *superannuation interest that supports the *superannuation income stream is wholly attributable to one or more superannuation interests of the deceased that were not in the *retirement phase, the amount of the cap increment is nil.

Note: A superannuation income stream covered by this subsection will generally result in excess transfer balance. The exceptions are: where you have additional cap increments under section 294-190 or 294-195, or where you have a higher cap under subsection 294-185(2) because you also receive a non-death benefit income stream.

Income stream partly funded by deceased's accumulation interests

(4) If the *superannuation interest that supports the *superannuation income stream is:

(a) in part (the retirement phase part ) attributable to a superannuation interest of the deceased that was in the *retirement phase; and

(b) in part attributable to a superannuation interest of the deceased that was not in the retirement phase;

the amount of the cap increment is so much of the *transfer balance credit that arises in your *transfer balance account in respect of the superannuation income stream as represents the retirement phase part.

Note: A superannuation income stream covered by this subsection will generally result in excess transfer balance. The exceptions are: where you have additional cap increments under section 294-190 or 294-195, or where you have a higher cap under subsection 294-185(2) because you also receive a non-death benefit income stream.

Reduced increment for excess transfer balance

(5) Despite subsections (2) and (4), the cap increment is reduced if there was *excess transfer balance in the deceased's *transfer balance account just before death. The amount of the reduction is:

(a) the proportion of the excess transfer balance that corresponds to your share of the deceased's *superannuation interests that were in the *retirement phase; less

(b) the amount of any *superannuation lump sum paid to you, because of the death of the person from a superannuation interest of the deceased that was in the retirement phase.

When cap increment arises

(6) The cap increment arises:

(a) on the starting day, unless paragraph (b) applies; or

(b) if you are a reversionary beneficiary - at the end of the period of 12 months beginning on the starting day.

Treatment of investment earnings after death

(7) For the purposes of working out under this section the extent to which a *superannuation interest is attributable to another superannuation interest, if:

(a) a superannuation interest of the deceased was in the *retirement phase; and

(b) on or after the death of the deceased, an amount of investment earnings is added to the superannuation interest;

the superannuation interest is taken to include that amount of investment earnings, except to the extent that the amount of investment earnings includes an amount paid under a policy of insurance on the life of the deceased or an amount arising from self-insurance.

Subdivision 294-F - Excess transfer balance tax

Guide to Subdivision 294-F

294-225 What this Subdivision is about

This Subdivision neutralises the earnings tax exemption on retirement phase income streams that result in excess transfer balance.

Table of sections

Operative provisions

294-230 Excess transfer balance tax

294-235 Your excess transfer balance earnings

294-240 When tax is payable - original assessments

294-245 When tax is payable - amended assessments

294-250 General interest charge

Operative provisions

294-230 Excess transfer balance tax

(1) If there is an *excess transfer balance period for your *transfer balance account, you are liable to pay *excess transfer balance tax imposed by the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 for the period.

Note: The amount of the tax is set out in the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016.

(2) An excess transfer balance period for a *transfer balance account is a continuous period of one or more days during which, at the end of each day, there is *excess transfer balance in the account.

(3) Your *excess transfer balance tax is worked out by reference to the sum of:

(a) your *excess transfer balance earnings for each day in the *excess transfer balance period; and

(b) for each day in the excess transfer balance period that is also a day in the period mentioned in subsection 294-25(2) (the determination period ) - the amount worked out by multiplying the rate mentioned in subsection 294-235(2) for the day by the sum of your excess transfer balance earnings for each previous day in the determination period.

294-235 Your excess transfer balance earnings

(1) Your excess transfer balance earnings for a day is worked out by multiplying the rate mentioned in subsection (2) for that day by the amount of your *excess transfer balance at the end of that day.

(2) The rate is the lower of:

(a) the rate worked out under subsection 8AAD(1) of the Taxation Administration Act 1953 for the day; and

(b) a rate determined under subsection (3) for the day.

(3) The Minister may, by legislative instrument, determine a rate for a day.

294-240 When tax is payable - original assessments

Your *assessed excess transfer balance tax is due and payable at the end of 21 days after the Commissioner gives you notice of the assessment of the amount of the *excess transfer balance tax.

Note: For assessments of excess transfer balance tax, see Division 155 in Schedule 1 to the Taxation Administration Act 1953.

294-245 When tax is payable - amended assessments

If the Commissioner amends your assessment, any extra *assessed excess transfer balance tax resulting from the amendment is due and payable 21 days after the day the Commissioner gives you notice of the amended assessment.

294-250 General interest charge

If an amount of *assessed excess transfer balance tax that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the *general interest charge on the unpaid amount for each day in the period that:

(a) begins on the day on which the amount was due to be paid; and

(b) ends on the last day on which, at the end of the day, any of the following remains unpaid:

(i) the assessed excess transfer balance tax;

(ii) general interest charge on any of the assessed excess transfer balance tax.

Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.