Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-D - Insurance and superannuation  

SECTION 118-305   Superannuation  

118-305(1)  
A *capital gain or *capital loss is disregarded if you make it from a *CGT event happening in relation to any of the following:

(a) a right to an allowance, annuity or capital amount payable out of a *superannuation fund or *approved deposit fund;

(b) a right to an asset of such a fund;

(c) a right to any part of such an allowance, annuity, capital amount or asset.

Example:

Angela retires from her employment and receives a lump sum payment from her superannuation fund. This is an example of CGT event C2 (her rights to receive the payment ending). There are no CGT consequences for Angela.

118-305(2)  
However, this exemption is not available if:

(a) you are the trustee of the fund and a *CGT event happens in relation to a *CGT asset of the fund; or

(b) an entity receives a payment or property where:

(i) the entity was not a member of the fund; and

(ii) the entity *acquired the right to the payment or property for consideration.

118-305(3)  

Subsection (2) does not apply if:

(a) a *payment split applies to a *splittable payment; and

(b) as a result, a payment is made to the *non-member spouse (or to his or her *legal personal representative if the non-member spouse has died).