• R6 Transfer of liability to life insurance company or PST

    Attention

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Show at R6 the amount, which would otherwise have been included in the fund’s assessable income for the income year under Subdivision 295-C of the ITAA 1997, that the trustee of the complying superannuation fund or a complying approved deposit fund (the ‘transferor’) has agreed to transfer to a life insurance company or PST (the 'transferee') pursuant to an agreement with that transferee entity. The amount of the income transferred is included in the transferee entity’s assessable income instead.

    The fund (transferor) must hold sufficient investments in a transferee entity to cover the tax payable by the transferee entity as a result of the transfer.

    The total amount transferred by the fund under all such agreements cannot exceed the amount that would otherwise have been included in the fund’s assessable income under Subdivision 295-C of the ITAA 1997.

    The agreement to transfer must be in writing, signed by both parties, must be made before the lodgment of the fund’s tax return, and cannot be revoked. The trustee can only make one agreement for an income year with a particular transferee.

    Superannuation funds cannot transfer the tax liability on no-TFN contributions income to a life insurance company or a PST. This is the case even if the fund has agreed to transfer 100% of the amount that would otherwise have been included in the fund’s assessable income for the income year under Subdivision 295-C of the ITAA 1997.

    R6 is used to determine R Assessable contributions.

    Record keeping

    Keep all relevant documents as evidence of the transferee’s consent to accept the transfer of assessable contributions and the associated tax liability.

    G Foreign exchange gains

    Show at G assessable foreign exchange gains (from both foreign and domestic sources) made by the fund. See Foreign exchange (Forex) gains and losses.

    If the TOFA rules apply to the fund, include all assessable foreign exchange gains from financial arrangements subject to the TOFA rules at G.

    If what you show at G includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).

    Last modified: 21 Aug 2015QC 44343