Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 294 - Transfer balance cap  

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

Operative provisions

SECTION 294-145   Transfer balance debits - special rules for capped defined benefit income streams  

Debit for commutation

294-145(1)    
Item 1 of the table in subsection 294-80(1) applies in relation to a *capped defined benefit income stream as if the reference in column 2 of that item to the amount of the *superannuation lump sum were a reference to:

(a) in a case where the commutation mentioned in column 1 of that item is a commutation in full - the *debit value, just before the commutation takes place, of the *superannuation interest that supports the capped defined benefit income stream; or

(b) in a case where that commutation is a commutation in part:

(i) if the capped defined benefit income stream is, or was at any time, covered by item 1 or 2 of the table in subsection 294-130(1) - the debit value mentioned in paragraph (a), multiplied by the fraction mentioned in subsection (1A); or

(ii) if the capped defined benefit income stream is, or was at any time, covered by any of items 3 to 7 of the table in subsection 294-130(1) - the amount mentioned in subsection (1B).

294-145(1A)    
For the purposes of subparagraph (1)(b)(i), the fraction is:

1	−	SV just after commutation
		SV just before commutation

where:

SV just after commutation
means the *special value, just after the commutation takes place, of the *superannuation interest that supports the *capped defined benefit income stream.

SV just before commutation
means the *special value, just before the commutation takes place, of the *superannuation interest that supports the *capped defined benefit income stream.

294-145(1B)    
For the purposes of subparagraph (1)(b)(ii), the amount is the lesser of the following:

(a) the *debit value mentioned in paragraph (1)(a);

(b) the amount (disregarding this section) of the *superannuation lump sum you received because of the commutation (as mentioned in item 1 of the table in subsection 294-80(1) ).

Debit for events that result in reduced superannuation

294-145(2)    
Item 3 of the table in subsection 294-80(1) (about events that result in reduced superannuation) applies in relation to a *capped defined benefit income stream as if the amount of the debit provided for in section 294-85 was the *debit value, just before the loss or payment reduces the *value of the *superannuation interest that supports the capped defined benefit income stream, multiplied by the amount worked out using the following formula:

1	−	SV just after event
		SV just before event

where:

SV just after event
means the *special value, worked out just after the loss or payment reduces the *value of the *superannuation interest that supports the *capped defined benefit income stream.

SV just before event
means the *special value, worked out just before the loss or payment reduces the *value of the *superannuation interest that supports the *capped defined benefit income stream.

Debit for payment split

294-145(3)    
Item 4 of the table in subsection 294-80(1) (about a debit for a payment split) applies in relation to a *capped defined benefit income stream as if the reference in section 294-90 to the *value of the *superannuation interest were a reference to the *debit value of the superannuation interest.

Debits for loss of earnings exemption

294-145(4)    
Items 5 and 6 of the table in subsection 294-80(1) apply in relation to an income stream that is, or was, a *capped defined benefit income stream as if the reference in the item to the *value of a *superannuation interest were a reference to the *debit value of the superannuation interest.

Meaning of debit value

294-145(5)    
The debit 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:

(a) the amount of the *transfer balance credit that arose in your *transfer balance account in respect of the income stream; less

(b) the amount of any *transfer balance debits (apart from debits arising under item 4 of the table in subsection 294-80(1) ) that have arisen in your transfer balance account in respect of the income stream before that time.

294-145(6)    
The debit 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:

(a) the amount of the *transfer balance credit that arose in your *transfer balance account in respect of the income stream; less

(b) the sum of the following:

(i) the amount of any *transfer balance debits (apart from debits arising under item 4 of the table in subsection 294-80(1) ) that have arisen in your transfer balance account in respect of the income stream before that time;

(ii) if item 1 of the table in subsection 294-80(1) applies in relation to the income stream because the income stream is commuted - the amount worked out under subsection (6A).

294-145(6A)    
The amount is the sum of the following:

(a) the total amount of *superannuation income stream benefits that you were entitled to receive from the income stream before the start of the financial year in which the commutation takes place;

(b) if regulation 1.07B of the Superannuation Industry (Supervision) Regulations 1994 applies to the income stream - the greater of the following:

(i) the minimum amount under subregulation 1.07B(4) of those regulations for the income stream for that financial year;

(ii) the total amount of superannuation income stream benefits that you received from the income stream in that financial year (other than superannuation income stream benefits that you were entitled to receive from the income stream before the start of that financial year);

(c) if regulation 1.07C of the Superannuation Industry (Supervision) Regulations 1994 applies to the income stream - the greater of the following:

(i) the minimum amount under subregulation 1.07C(3) of those regulations for the income stream for that financial year;

(ii) the total amount of superannuation income stream benefits that you received from the income stream in that financial year (other than superannuation income stream benefits that you were entitled to receive from the income stream before the start of that financial year);

(d) if regulation 1.08 of the Retirement Savings Accounts Regulations 1997 applies to the income stream - the greater of the following:

(i) the minimum amount under regulation 1.08 of those regulations for the income stream for that financial year;

(ii) the total amount of superannuation income stream benefits that you received from the income stream in that financial year (other than superannuation income stream benefits that you were entitled to receive from the income stream before the start of that financial year).

Regulations

294-145(7)    
The regulations may specify a method for determining the debit value of a *superannuation interest that supports a *superannuation income stream prescribed by regulations made for the purposes of subsection 294-130(2) .