Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026 (F2026L00726)

Schedule 2   Total superannuation balance value and the value of superannuation interests

Part 2   Total superannuation balance value and the value of superannuation interests

Division 2   Application of amendments

Income Tax Assessment (1997 Act) Regulations 2021

11   Before section 1000-8.05

Insert:

1000-8.01 Application of amendments - total superannuation balance value and the value of superannuation interests

(1) The amendments of section 307-205.02C made by this Part apply in relation to working out what the value of a superannuation interest is at a particular time if that time occurs on or after 1 July 2026.

(2) Sections 307-230A.01, 307-230A.02, 307-230A.03 and 307-230A.09 apply in relation to working out what the total superannuation balance value of a superannuation interest is at a particular time if that time occurs on or after 1 July 2026.

1000-8.02 Transitional provision - difference in total superannuation balance value resulting from a change in valuation methods

(1) This section applies to a superannuation interest if:

(a) it is a superannuation interest of yours:

(i) just before 1 July 2026; and

(ii) at all times occurring between 1 July 2026 and 30 June 2027; or

(b) it supports a death benefit income stream that, because of the death of another person, you are receiving:

(i) just before 1 July 2026; and

(ii) at all times occurring between 1 July 2026 and 30 June 2027.

(2) If the total superannuation balance value of the superannuation interest just before 1 July 2026 exceeds the new method value, the excess is included in the total worked out for you under subsection 296-70.03(1) in relation to the interest.

(3) If the new method value exceeds the total superannuation balance value of the superannuation interest just before 1 July 2026, the excess is included in the total worked out for you under subsection 296-70.02(1) in relation to the interest.

(4) If column 1 of an item of the following table applies, the new method value is the amount set out in column 2 of that item:

1000-8.03 Transitional provision - total superannuation balance value for certain superannuation interests just before 1 July 2026

(1) Subsection (2) applies in relation to:

(a) a superannuation interest that is an interest of yours just before 1 July 2026 (the transition time ) if, at that time:

(i) the interest is in the retirement phase and the interest does not support a superannuation income stream mentioned in subsection 307-230A.02(5); or

(ii) the interest is an interest that you are treated as having under subsection 307-230(3) of the Act because you are a non-member spouse in relation to another superannuation interest, and paragraph (a) of this subsection applies to the other superannuation interest;

(b) a superannuation interest (also a relevant interest ) that supports a superannuation income stream of which you are, because of the death of another person, a retirement phase recipient at the transition time, if, at that time:

(i) the interest is in the retirement phase and the interest does not support a superannuation income stream mentioned in subsection 307-230A.02(5); or

(ii) the interest is an interest that you are treated as having under subsection 307-230(3) of the Act because you are a non-member spouse in relation to another superannuation interest, and paragraph (a) of this subsection applies to the other superannuation interest.

(2) For the purposes of paragraph 307-230A(1)(a) of the Act, the greater of the following values is specified:

(a) the value worked out using the following formula;

(b) nil.

(3) Subsection (4) applies if a transfer balance credit has arisen, at or before that time, in your transfer balance account in respect of a superannuation income stream mentioned in subsection 307-230A.02(5).

(4) For purposes of working out the transfer balance mentioned in subsection (2) of this section, disregard the operation of the following provisions in relation to the superannuation income stream mentioned in subsection (3):

(a) items 1 and 2 of the table in subsection 294-25(1) of the Act;

(b) items 1, 3, 4, 5 and 6 of the table in subsection 294-80(1) of the Act.

(5) For the purposes of this section, disregard sections 307-230A.10 and 307-230A.11.

1000-8.04 Transitional provision - vested benefits total

For the purposes of working out whether section 307-230A.08, as inserted by Part 2 of Schedule 2 to the Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026, applies to a superannuation interest at a particular time (the application time ) that does not occur just before 1 July 2028 and does not occur on or after 1 July 2028:

(a) disregard the reference in subparagraph 307-230A.08(1)(b)(i) to that section having applied 12 months before the application time; and

(b) treat the reference in that subparagraph to the vested benefits total of the interest as being a reference to the value of the interest.