Taxation Laws Amendment Act (No. 3) 1994 (138 of 1994)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 12   Amendments relating to reasonable benefits limits

Sub-Division A   Certain commutation ETPs, pensions and annuities to be in excess of RBLs

95   Interim determinations

Section 140T of the Principal Act is amended:

(a) by omitting from subsection (1) "subsection (2) (which deals with the non-quotation of tax file numbers)" and substituting "this section";
          

(b) by inserting after subsection (2A) the following subsections:
          

(Application of subsection (1) in respect of commutation ETPs)

"(2B) If the ETP:

(a) was made in relation to the person as a result of the commutation or partial commutation of, or the residual capital value of, a superannuation pension or annuity; or

(b) arose from the commutation or partial commutation of a superannuation pension or annuity to which paragraph 140ZC(2)(d) applies;

the determination that the Commissioner must make is that the ETP is in excess of the person's RBLs to the extent worked out using the formula:

RBL amount of the ETP * (1 - Rebatable proportion of the superannuation pension or annuity)

(Application of subsection (1) in respect of commutation pensions and annuities)

"(2C) If the superannuation pension or annuity mentioned in subsection (1) is a residual pension or residual annuity payable on the commutation or partial commutation of another superannuation pension or annuity, the determination that the Commissioner must make is:

(a) that the superannuation pension or annuity is in excess of the person's RBLs; and

(b) that the rebatable proportion of the superannuation pension or annuity is the same as the rebatable proportion of the other superannuation pension or annuity.".