Income Tax Assessment (1997 Act) Regulations 2021
For the purposes of item 5 of the table in subsection 294-25(1) of the Act, a transfer balance credit arises under this section in your transfer balance account if: (a) you receive a superannuation lump sum because a capped defined benefit income stream (the commuted stream ) covered by any of items 1 to 7 of the table in subsection 294-130(1) of the Act is commuted, in full or in part, on or after 1 July 2017; and (b) the superannuation lump sum is transferred directly to the purchase of a superannuation income stream (the commenced stream ) that is covered by an item of the following table and is in the retirement phase.
| Covered superannuation income stream | ||
| Item | Topic | A superannuation income stream is covered if: |
| 1 | Life expectancy pension | it is a pension for the purposes of the SIS Act that is provided under rules that meet the standards of subregulation 1.06(7) of the SIS Regulations |
| 2 | Life expectancy annuity | it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(9) of the SIS Regulations |
| 3 | Market linked pension | it is a pension for the purposes of the SIS Act that is provided under rules that meet the standards of subregulation 1.06(8) of the SIS Regulations |
| 4 | Market linked annuity | it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(10) of the SIS Regulations |
| 5 | Market linked pension (RSA) | it is a pension for the purposes of the RSA Act that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations |
294-25.02(2)
The amount of the credit is the value worked out under item 2 of the table in subsection 294-25(1) of the Act for the commenced stream as if that item applied to the commenced stream.
294-25.02(3)
The credit arises immediately after the transfer balance debit arises in relation to the commutation under subsection 294-80.02A(3) of this instrument.
294-25.02(4)
For the purposes of subsection 294-25(3) of the Act, item 2 of the table in subsection 294-25(1) of the Act does not apply to superannuation income streams that are purchased in circumstances resulting in transfer balance credits arising under this section.
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