Treasury Laws Amendment (2017 Measures No. 2) Act 2017 (55 of 2017)

Schedule 1   Amendments relating to superannuation reform package

Part 1   Amendments

Income Tax Assessment Act 1997

6   At the end of Subdivision 294-B

Add:

294-55 Repayment of limited recourse borrowing arrangement

(1) A *transfer balance credit arises in your *transfer balance account if:

(a) a *superannuation provider makes a payment in respect of a *borrowing under an *arrangement that is covered by the exception in subsection 67A(1) of the Superannuation Industry (Supervision) Act 1993 (which is about limited recourse borrowing arrangements); and

(b) as a result, there is an increase in the *value of a *superannuation interest that supports a *superannuation income stream of which you are the *retirement phase recipient; and

(c) the superannuation interest is in a *superannuation fund that is covered by subsection (4) at the time of the payment.

(2) The amount of the credit is the amount of the increase in *value.

(3) The credit arises at the time of the payment.

(4) A *complying superannuation fund is covered by this subsection at a time if any of the following requirements are satisfied:

(a) the fund is a *self managed superannuation fund at the time;

(b) there are less than 5 *members of the fund at the time.