Income Tax Assessment Act 1936

Div 14 repealed by No 15 of 2007, s 3 and Sch 1 item 6, applicable to the 2007-2008 income year and later years.

Div 14 inserted by No 208 of 1992.

Former Div 14 (s 137-140) repealed by No 126 of 1977.

Subdiv A repealed by No 15 of 2007, s 3 and Sch 1 item 6, applicable to the 2007-2008 income year and later years.

S 140B repealed by No 15 of 2007, s 3 and Sch 1 item 6, applicable to the 2007-2008 income year and later years. S 140B formerly read:

SECTION 140B EXAMPLE OF HOW TO DETERMINE WHETHER A BENEFIT IS IN EXCESS OF THE RECIPIENT ' S RBLs  
140B(1) Typical example.  

This section sets out how to determine whether a benefit exceeds the recipient ' s RBLs in a typical case involving a 61-year old person who receives a retirement lump sum (ETP) from an employer-sponsored superannuation fund. The person retires on 31 December 1994 at the end of a 10-year period of employment. All contributions to the superannuation fund were made by the person ' s employer. The amount of the ETP is $500,000. The ETP consists wholly of the taxed element of the post-June 83 component of the ETP. The person has not received any previous benefits which count towards the person ' s RBLs. The person is considering the following options:

(a) taking the whole of the ETP (and not rolling-over any of the ETP);

(b) rolling-over the whole of the ETP in the purchase from a life assurance company of an annuity which meets the pension and annuity standards.

140B(2) Option (a) - taking the whole of the ETP (and not rolling-over any of the ETP).  

If the person takes the whole of the ETP (and does not roll-over any of the ETP), the RBL amount of the ETP is $500,000 (section 140ZH ). The ETP will be assessed against the person ' s lump sum RBL ($400,000 for 1994-95). The result of applying the RBL formula is as follows:

$500,000   +   0   −   $400,000   =   $100,000

$100,000 exceeds 0, so the ETP is in excess of the person ' s RBLs. The amount of that excess is $100,000.

140B(3) Option (b) - rolling-over the ETP in the purchase from a life assurance company of an annuity which meets the pension and annuity standards.  

If the person rolls-over the ETP in the purchase from a life assurance company of an annuity which meets the pension and annuity standards, the benefit to be assessed against the person ' s RBLs is the annuity instead of the ETP. The RBL amount of the annuity is $500,000, that is, the amount of the ETP rolled-over to purchase the annuity (section 140ZM ). The annuity is assessed against the person ' s pension RBL ($800,000 for 1994-95). The result of applying the RBL formula is as follows:

$500,000   +   0   −   $800,000   =   − $300,000

Since the amount calculated using the RBL formula does not exceed 0, the annuity is not in excess of the person ' s RBLs.

S 140B inserted by No 208 of 1992.