Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 294 - Transfer balance cap  

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

SECTION 294-135.01   TRANSFER BALANCE CREDIT - DETERMINING SPECIAL VALUE OF A SUPERANNUATION INTEREST  

294-135.01(1)    
For the purposes of subsection 294-135(4) of the Act, the special value , at a particular time, of a superannuation interest that supports an income stream that is, or was at any time, a superannuation income stream prescribed by section 294-130.01 of this instrument, is the amount worked out using the formula:

Annual entitlement

×

16

where:

annual entitlement
means the amount 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.

294-135.01(2)    

Subsection (1) does not apply to a superannuation interest covered by subsection (3) or (6) .

294-135.01(3)    
This subsection covers a superannuation interest that supports an income stream that is, or was at any time, a superannuation income stream prescribed by section 294-130.01 to which subsection 294-130.01(5) applies.

294-135.01(4)    
For the purposes of subsection 294-135(4) of the Act, the special value , at a particular time, of a superannuation interest covered by subsection (3) of this section is the amount worked out in respect of that time under subsection 294-135(3) of the Act.

294-135.01(5)    
For the purposes of subsection (4) of this section, treat the reference in subsection 294-135(3) of the Act to a capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294-130(1) as instead being a reference to the income stream mentioned in subsection (3) of this section.

294-135.01(6)    

This subsection covers a superannuation interest in a superannuation plan if:

(a)    the superannuation interest supports an income stream that is, or was at any time, a superannuation income stream prescribed by section 294-130.01 to which subsection 294-130.01(7) applies; and

(b)    a superannuation benefit was paid from the superannuation income stream to a person, whether before, at or after the time the Income Tax Assessment Amendment (Transfer Balance Account Value for Certain Superannuation Income Streams) Regulations 2024 commenced (the commencement time); and

Note:

The Income Tax Assessment Amendment (Transfer Balance Account Value for Certain Superannuation Income Streams) Regulations 2024 inserted this subsection.

(c)    the superannuation benefit was paid to the person because the person 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 superannuation provider in relation to the superannuation plan had not given the Commissioner, before the commencement time, a statement under subsection 390-5(1) in Schedule 1 to the Taxation Administration Act 1953 in relation to the superannuation interest indicating that a transfer balance credit arose in the person ' s transfer balance account because of the superannuation income stream.

294-135.01(7)    

For the purposes of subsection 294-135(4) of the Act, the special value , at a particular time, of a superannuation interest covered by subsection (6) of this section is the lesser of the following amounts:

(a)    the amount worked out in respect of that time under subsection 294-135(2) of the Act;

(b)    if there is a particular period throughout which superannuation income stream benefits are payable under the income stream mentioned in paragraph (6)(a) of this section - the amount worked out in respect of that time under subsection 294-135(3) of the Act.

294-135.01(8)    

For the purposes of paragraphs (7)(a) and (b) of this section, treat:

(a)    the reference in subsection 294-135(2) of the Act to a capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294-130(1) of the Act; and

(b)    the reference in subsection 294-135(3) of the Act to a capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294-130(1) of the Act;

as instead being references to the income stream mentioned in paragraph (6)(a) of this section.

294-135.01(9)    

For the purposes of paragraph (7)(b) of this section, if:

(a)    superannuation income stream benefits are payable under the income stream mentioned in paragraph (6)(a) for a fixed term; but

(b)    despite that fixed term, the superannuation income stream benefits may cease to be payable before the end of the fixed term in certain circumstances;

treat the superannuation income stream benefits as being payable under the income stream throughout the fixed term.