Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 294 - Transfer balance cap  

Subdivision 294-C - Transfer balance debits  

SECTION 294-80.02A   DEBIT IN TRANSFER BALANCE ACCOUNT - COMMUTATION OF CERTAIN CAPPED DEFINED BENEFIT INCOME STREAMS  

294-80.02A(1)    
For the purposes of item 8 of the table in subsection 294-80(1) of the Act, a transfer balance debit 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 table in subsection 294-25.02(1) of this instrument and is in the retirement phase.

294-80.02A(2)    
The amount of the debit is the amount worked out under item 1 of the table in subsection 294-80(1) of the Act (as it applies in relation to a capped defined benefit income stream under section 294-145 of the Act) for the commuted stream as if that item applied to the commuted stream.

294-80.02A(3)    
The debit arises at the later of:

(a)    immediately after the commencement of the Treasury Laws Amendment (Allowing Commutation of Certain Income Streams) Regulations 2022 ; and

(b)    immediately after the commutation occurs.

294-80.02A(4)    
For the purposes of subsection 294-80(3) of the Act, item 1 of the table in subsection 294-80(1) of the Act does not apply to capped defined benefit income streams that are commuted in circumstances resulting in transfer balance debits arising under this section.