Tax Laws Amendment (2011 Measures No. 4) Act 2011 (43 of 2011)

Schedule 3   Disability superannuation benefits

Part 2   Definition of disability superannuation benefits

Division 1   Main provisions

Income Tax (Transitional Provisions) Act 1997

11   After section 295-466

Insert:

295-467 Complying funds - deductions for self-insurance for disability superannuation benefits

Scope

(1) This section applies if:

(a) during an income year, a complying superannuation fund is subject to current or contingent liabilities to provide superannuation benefits for members of the fund; and

(b) the income year is:

(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.

Note: For liabilities during the 2004-05 to 2006-07 income years, see item 8 of Schedule 3 to the Tax Laws Amendment (2011 Measures No. 4) Act 2011.

Entitlement to deduction

(2) Treat the superannuation benefits mentioned in paragraph (1)(a) 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 section 295-466.

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(2) 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(2) of that Act;

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

(b) without limiting subsection 295-465(2) 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.

Note: This section will be repealed on 1 January 2017: see Division 2 of Part 2 of Schedule 3 to the Tax Laws Amendment (2011 Measures No. 4) Act 2011.