Treasury Laws Amendment (Miscellaneous Amendments) Regulations 2018 (F2018L01691)

Schedule 1   Amendments

Part 3   Amendments commencing the day after registration

Division 1   Superannuation income stream benefits

Income Tax Assessment Regulations 1997

8   Subregulations 995-1.01(2), (3) and (4)

Repeal the subregulations, substitute:

(2) Subregulation (3) applies if:

(a) immediately before the death of a person (the deceased ), a superannuation interest was supporting a superannuation income stream payable to the deceased; and

(b) the superannuation income stream did not automatically revert to another person on the death of the deceased; and

(c) one or more other persons each have a right (whether contingent or not) to be paid an amount that will be a superannuation benefit from the superannuation interest; and

(d) each such right arises on the death of the deceased, and ceases to exist immediately after the payment of the amount mentioned in paragraph (c).

(3) For the purposes of paragraph (d) of the definition of superannuation income stream in subregulation (1), this subregulation covers each such right, to the extent that the value of the superannuation interest has not increased (other than through investment earnings) on or after the deceased's death.

(4) Subregulations (4A) and (4B) apply if:

(a) immediately before the death of a person (the deceased ), a superannuation interest was supporting a superannuation income stream payable to the deceased; and

(b) the superannuation income stream did not automatically revert to another person on the death of the deceased; and

(c) one or more persons each have a right (whether contingent or not) to commence a new superannuation income stream using an amount applied from the superannuation interest; and

(d) each such right arises on the death of the deceased, and ceases to exist at the time the relevant new superannuation income stream commences (disregarding paragraph (4A)(a)); and

(e) each of the new income streams is of a kind mentioned in paragraph (a) of the definition of superannuation income stream in subregulation (1).

(4A) For the purposes of sections 295-385, 295-390, 295-395, 320-246 and 320-247 of the Act, in applying paragraph (a) of the definition of superannuation income stream in subregulation (1):

(a) treat each new superannuation income stream mentioned in paragraph (4)(c) as commencing on the death of the deceased; and

(b) during the period:

(i) starting on the death of the deceased; and

(ii) ending at the time the new superannuation income stream commences (disregarding paragraph (a));

take account of the value of the superannuation interest only to the extent that the value has not increased (other than through investment earnings) on or after the deceased's death.

(4B) For the purposes of subregulations (2) and (3), disregard a right mentioned in paragraph (4)(c).