Commonwealth Numbered Acts Commonwealth Numbered Acts
Income Tax Assessment Act 1997
1 At the end of Subdivision 307-B
Add:
307-75 Meaning of retirement phase superannuation income stream benefit
(1) A * superannuation income stream benefit is a retirement phase superannuation income stream benefit (or RP superannuation income stream benefit ) of a * superannuation fund at a time if it is payable by the fund at that time from a * superannuation income stream that is in the * retirement phase at that time.
(2) A * superannuation income stream benefit is also a retirement phase superannuation income stream benefit (or RP superannuation income stream benefit ) of a * superannuation fund at a time if it is payable by the fund after that time from a * superannuation income stream that:
(a) is a * deferred superannuation income stream; and
(b) is in the * retirement phase at that time.
307-80 When a superannuation income stream is in the retirement phase
(1) A * superannuation income stream is in the retirement phase at a time if a * superannuation income stream benefit is payable from it at that time.
(2) A * superannuation income stream is also in the retirement phase at a time if:
(a) it is a * deferred superannuation income stream; and
(b) a * superannuation income stream benefit will be payable from it to a person after that time; and
(c) the person has satisfied (whether at or before that time) a condition of release specified in any of the following items of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 :
(i) 101 (retirement);
(ii) 102A (terminal medical condition);
(iii) 103 (permanent incapacity);
(iv) 106 (attaining age 65).
(3) However, a * superannuation income stream is not in the retirement phase if it is any of the following:
(a) a transition to retirement income stream (within the meaning of Part 6 of the Superannuation Industry (Supervision) Regulations 1994 );
(b) a non-commutable allocated annuity (within the meaning of those regulations) ;
(c) a non-commutable allocated pension (within the meaning of those regulations);
(d) a transition to retirement income pension (within the meaning of Part 4 of the Retirement Savings Accounts Regulations 1997 );
(e) a non-commutable allocated pension (within the meaning of those regulations).
(4) A * superannuation income stream is also not in the retirement phase in an income year if:
(a) the superannuation income stream is specified in a commutation authority issued by the Commissioner under Subdivision 136-B in Schedule 1 to the Taxation Administration Act 1953 to a * superannuation income stream provider; and
(b) the superannuation income stream provider is required by section 136-80 in that Schedule to pay a * superannuation lump sum but fails to do so within the 60-day period mentioned in that section; and
(c) the income year is the income year in which the 60-day period ended, or a later income year.
2 Section 307-205
Before "The", insert "(1)".
3 At the end of section 307-205
Add:
(2) The accumulation phase value of an individual's * superannuation interest, at a particular time when the interest is not in the * retirement phase, is:
(a) if the regulations specify that value or a method for determining that value--that value; or
(b) otherwise--the total amount of the * superannuation benefits that would become payable if the individual voluntarily caused the interest to cease at that time.
4 At the end of Subdivision 307-D
Add:
307-230 Total superannuation balance
(1) Your total superannuation balance , at a particular time, is the sum of the following:
(a) if you have one or more * superannuation interests that are not in the * retirement phase--the * accumulation phase values, at that time, of each such interest;
(b) if you have a * transfer balance account--the * transfer balance of the account at that time (but not less than nil);
(c) the amount of each * roll-over superannuation benefit:
(i) paid at or before that time; and
(ii) received by the * complying superannuation plan, or the entity from which the * superannuation annuity is being purchased, after that time; and
(iii) not reflected in the value in paragraph (a) or the balance in paragraph (b).
Modification for structured settlement contributions
(2) However, if a * structured settlement contribution is made at or before a time in respect of you, your total superannuation balance at that time is modified by:
(a) if you do not have a * transfer balance account--reducing the sum worked out under subsection (1) by the sum of any such structured settlement contributions; and
(b) if you have a transfer balance account:
(i) first, working out the * transfer balance mentioned in paragraph (1)(b) disregarding the operation of item 2 of the table in subsection 294-80(1); and
(ii) then, reducing the sum worked out under subsection (1) (having regard to subparagraph (i) of this paragraph) by the sum of any such structured settlement contributions.
Modification for account-based income streams
(3) For the purposes of working out the * transfer balance mentioned in paragraph (1)(b):
(a) if a * transfer balance credit has arisen, at or before that time, in your * transfer balance account in respect of a * superannuation income stream covered by subsection (4)--disregard the operation of the following provisions in relation to the superannuation income stream:
(i) items 1 and 2 of the table in subsection 294-25(1);
(ii) items 1, 3, 4, 5 and 6 of the table in subsection 294-80(1); and
(b) if, at that time, you have a * superannuation interest that supports a superannuation income stream covered by subsection (4) of this section--increase the amount of that balance by the total amount of the * superannuation benefits that would become payable if:
(i) you had the right to cause the superannuation interest to cease at that time; and
(ii) you voluntarily caused the superannuation interest to cease at that time.
(4) This subsection covers a * superannuation income stream that is any of the following:
(a) an * allocated annuity;
(b) an * allocated pension;
(c) an allocated pension (within the meaning of the Retirement Savings Accounts Regulations 1997 );
(d) an * account-based annuity;
(e) an account-based pension (within the meaning of the Superannuation Industry (Supervision) Regulations 1994 );
(f) an account based pension (within the meaning of the Retirement Savings Accounts Regulations 1997 );
(g) a market linked annuity (within the meaning of the Superannuation Industry (Supervision) Regulations 1994 );
(h) a market linked pension (within the meaning of the Superannuation Industry (Supervision) Regulations 1994 );
(i) a market linked pension (within the meaning of the Retirement Savings Accounts Regulations 1997 ).
5 Section 960-265 (after table item 10)
Insert:
|
10A |
* General transfer balance cap |
section 294-35 |
6 Section 960-285
Repeal the section, substitute:
960-285 Indexation--superannuation and employment termination
(1) This section applies in relation to the amounts listed at items 8 to 12 in section 960-265.
Indexing amounts
(2) You index the amount by:
(a) first, multiplying its base amount mentioned in subsection (3) by its * indexation factor mentioned in subsection (5); and
(b) next, rounding the result in paragraph (a) down to the nearest multiple of its * rounding amount.
Example 1: An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $143,000, the indexed amount is rounded back down to $140,000.
Example 2: An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.
(3) The amount (the base amount ) for an amount to which this section applies is:
(a) unless paragraph (b) applies--the amount for the 2007-2008 income year or * financial year; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265--the amount for the 2017-2018 financial year.
(4) You do not index the amount if the * indexation factor is 1 or less.
Indexation factor
(5) For indexing an amount, its indexation factor is:
where:
"base quarter " means:
(a) unless paragraph (b) applies--the quarter ending on 31 December 2006; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265--the quarter ending on 31 December 2016.
(6) You work out the * indexation factor mentioned in subsection (5) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
Index number and rounding amount
(7) For indexing an amount to which this section applies:
(a) the index number for a * quarter is set out in column 2 of the relevant item in the following table; and
(b) the rounding amount is set out in column 3 of that item.
|
Concepts for indexing rounded caps |
|||
|
Item |
Column 1 |
Column 2 |
Column 3 |
|
1 |
Items 8, 10, 11 and 12 |
the * index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) |
$5,000 |
|
2 |
Item 9 (concessional contributions cap) |
the * index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) |
$2,500 |
|
3 |
Item 10A (general transfer balance cap) |
the * index number mentioned in subsection 960-280(1) (which is about the CPI) |
$100,000 |
7 Subsection 995-1(1)
Insert:
"account-based annuity " has the meaning given by the Superannuation Industry (Supervision) Regulations 1994 .
"accumulation phase value " of a * superannuation interest has the meaning given by subsection 307-205(2).
"assessed excess transfer balance tax " means * excess transfer balance tax, as assessed under Schedule 1 to the Taxation Administration Act 1953 .
"capped defined benefit income stream " has the meaning given by section 294-130.
"child recipient " of a * superannuation income stream has the meaning given by section 294-175.
"Commonwealth public sector superannuation scheme " has the same meaning as in the Superannuation (Unclaimed Money and Lost Members) Act 1999 .
8 Subsection 995-1(1) (after subparagraph (b)(i) of the definition of complying superannuation life insurance policy )
Insert:
(ia) provides for an * immediate annuity, if the annuity is a * superannuation income stream that is not in the * retirement phase; or
9 Subsection 995-1(1)
Insert:
"crystallised reduction amount " has the meaning given by section 136-10 in Schedule 1 to the Taxation Administration Act 1953 .
"debit value " , of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream, has the meaning given by section 294-145.
"default commutation notice " has the meaning given by section 136-10 in Schedule 1 to the Taxation Administration Act 1953 .
"deferred superannuation income stream " has the meaning given by the Superannuation Industry (Supervision) Regulations 1994.
"defined benefit income " has the meaning given by section 303-2.
"defined benefit income cap " has the meaning given by section 303-4.
"disregarded small fund assets " has the meaning given by section 295-387.
"excess transfer balance " has the meaning given by section 294-30 and modified by section 294-140.
"excess transfer balance determination " has the meaning given by section 136-10 in Schedule 1 to the Taxation Administration Act 1953 .
"excess transfer balance earnings " has the meaning given by section 294-235.
"excess transfer balance period " has the meaning given by section 294-230.
"excess transfer balance tax " means tax imposed by the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 .
"general transfer balance cap " has the meaning given by section 294-35.
"member spouse " has the same meaning as in Part VIIIB of the Family Law Act 1975 .
"retirement phase " :
(a) section 307-80 sets out when a * superannuation income stream is in the retirement phase ; and
(b) a * superannuation interest is in the retirement phase at a time if it supports a superannuation income stream that is in the retirement phase at that time.
"retirement phase recipient " of a * superannuation income stream has the meaning given by section 294-20.
"retirement phase superannuation income stream benefit (or RP superannuation income stream benefit" ) has the meaning given by section 307-75.
"rounding amount " has the meaning given by section 960-285.
"special value " , of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream, has the meaning given by section 294-135.
"structured settlement contribution " has the meaning given by section 294-80.
"superannuation income stream provider " for a * superannuation income stream means:
(a) for a superannuation income stream provided by a * superannuation fund--the trustee of the fund; or
(b) for a superannuation income stream that is a pension for the purposes of the Retirement Savings Accounts Act 1997 --the * RSA provider; or
(c) for a superannuation income stream provided by an * approved deposit fund--the trustee of the fund; or
(d) for a superannuation income stream provided by a * life insurance company -- the life insurance company.
"total superannuation balance " has the meaning given by section 307-230.
"transfer balance " has the meaning given by section 294-30.
"transfer balance account " means an account that arises under section 294-15.
"transfer balance cap " has the meaning given by section 294-35 and modified by section 294-185.
"transfer balance credit " has the meaning given by section 294-25.
"transfer balance debit " has the meaning given by section 294-80.
"unused concessional contributions cap " has the meaning given by section 291-20.
10 Subsection 995-1(1) (paragraph (d) of the definition of value )
Omit "section 307-205", substitute "subsection 307-205(1)".
11 Application
A term that is defined in this Schedule applies in a provision of an Act, regulation or instrument in the same way as that provision applies.
