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

8   Complying funds - deductions for self-insurance for disability benefits

Scope

(1) This item applies if:

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

(b) the year of income is:

(i) the 2004-05 year of income; or

(ii) the 2005-06 year of income; or

(iii) the 2006-07 year of income.

Note: For liabilities during the 2007-08 to 2010-11 years of income, see section 295-467 of the Income Tax (Transitional Provisions) Act 1997.

Entitlement to deduction

(2) Treat the benefits mentioned in paragraph (1)(a) as being death or disability benefits , in relation to the members mentioned in that paragraph, to the extent that:

(a) the benefits are conditional on the disability of the members; and

(b) the disability is described as a permanent disability in regulations made for the purposes of section 295-466 of the Income Tax (Transitional Provisions) Act 1997.

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) Subitem (2) applies:

(a) for the purposes of applying former subsection 279(2) of the Income Tax Assessment Act 1936 to the liability mentioned in paragraph (1)(a) of this item; and

(b) without limiting that former subsection.