Income Tax Assessment Amendment Regulations 2007 (No. 2) (90 of 2007)

Schedule 2   Amendments commencing on 1 July 2007

[3]   Part 6, after regulation 995-1.02

insert

995-1.03 Payments that are not superannuation income stream benefits

A payment from an interest that supports a superannuation income stream is not a superannuation income stream benefit if:

(a) the conditions to which the superannuation income stream is subject allow for the variation of the amount of the payments of benefit in a year in circumstances other than:

(i) the indexation of the benefit under the rules of the product; or

(ii) the application of the family law splitting provisions; or

(iii) the commutation of the benefit (including commutation to pay a surcharge liability); or

(iv) the payment of an assessment of excess contributions tax; and

(b) the person to whom the payment is made elects, before a particular payment is made, that that payment is not to be treated as a superannuation income stream benefit.

995-1.04 Constitutionally protected funds

For the definition of constitutionally protected fund in subsection 995-1 (1) of the Act, a fund:

(a) of the kind to which, in the absence of item 5.3 of section 50-25 of the Act, Division 295 of the Act would apply; and

(b) established by:

(i) a State Act mentioned in Schedule 4; or

(ii) a specified provision of a State Act mentioned in Schedule 4;

is a constitutionally protected fund.