Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 294 - Transfer balance cap  

Subdivision 294-E - Modifications for death benefits dependants who are children  

Operative provisions

SECTION 294-185   Transfer balance cap - special rule for child recipient  

294-185(1)    
Despite section 294-35 , your transfer balance cap on a day is the sum of the cap increments that have arisen under this Subdivision on and before that day.

Note:

Your transfer balance cap is not worked out on a financial year basis and it is not indexed.

294-185(2)    
However, if there are one or more *superannuation income streams of which you are, on that day, a *retirement phase recipient but not a *child recipient, your transfer balance cap on that day is the sum of:

(a) the sum of the cap increments that have arisen under this Subdivision on and before that day; and

(b) your transfer balance cap for the *financial year in which the day falls, worked out disregarding:

(i) any cap increments that arise under this Subdivision; and

(ii) any *transfer balance credits or *transfer balance debits that have arisen in your *transfer balance account in respect of superannuation income streams of which you are a child recipient.

Note:

Paragraph (b) is the transfer balance cap you would have if you were not a child recipient of any income stream. Disregarding credits, debits and cap increments allows this cap to be indexed appropriately under section 294-40 (which is about proportional indexation).