Treasury Laws Amendment (Allowing Commutation of Certain Income Streams) Regulations 2022 (F2022L00511)

Schedule 1   Amendments

Income Tax Assessment (1997 Act) Regulations 2021

1   At the end of Subdivision 294-B

Add:

294-25.02 Credit in transfer balance account - commutation of certain capped defined benefit income streams

(1) 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

(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.

(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.

(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.