Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-30
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SUPERANNUATION
Division 294
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Transfer balance cap
Subdivision 294-D
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Modifications for certain defined benefit income streams
Operative provisions
SECTION 294-135 Transfer balance credit - special rule for capped defined benefit income streams 294-135(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
294-135(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:
(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
294-135(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:
Regulations
294-135(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) .
View history note
Hide history noteSECTION 294-135 Transfer balance credit - special rule for capped defined benefit income streams 294-135(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
294-135(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:
Annual entitlement × 16
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
294-135(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:
Annual entitlement × Remaining term
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
294-135(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) .
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