INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 294 - Transfer balance cap  

Subdivision 294-D - Modifications for certain defined benefit income streams  

Operative provisions

SECTION 294-135   Transfer balance credit - special rule for capped defined benefit income streams  

294-135(1)  
Section 294-25 applies in relation to a *capped defined benefit income stream as if a reference in that section to the *value of a *superannuation interest were a reference to the *special value of the superannuation interest. Meaning of special value - lifetime products

294-135(2)  
The special value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294-130(1) , is the amount worked out using the formula:

Annual entitlement × 16

where:

annual entitlement
is worked out by:


(a) dividing the amount of the first *superannuation income stream benefit you are entitled to receive from the income stream just after that time by the number of whole days to which that benefit relates; and


(b) multiplying the result by 365.

Meaning of special value - life expectancy and market linked products

294-135(3)  
The special value , at a particular time, of a *superannuation interest that supports an income stream that is, or was at any time, a *capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294-130(1) , is the amount worked out using the formula:

Annual entitlement × Remaining term

where:

annual entitlement
has the same meaning as in subsection (2) of this section.

remaining term
means the number of years remaining at that time in the period throughout which *superannuation income stream benefits are payable under the income stream, rounded up to the next whole number.

Regulations

294-135(4)  
The regulations may specify a method for determining the special value of a *superannuation interest that supports a *superannuation income stream prescribed by regulations made for the purposes of subsection 294-130(2) .


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