Income Tax Assessment Act 1997
The object of this section is to ensure that the *tax free component and *taxable component of a *superannuation benefit are calculated by:
(a) first, determining the proportions of the *value of the *superannuation interest that those components represent; and
(b) next, applying those proportions to the benefit. 307-125(2)
The *superannuation benefit is taken to be paid in a way such that each of those components of the benefit bears the same proportion to the amount of the benefit that the corresponding component of the *superannuation interest bears to the *value of the superannuation interest.
The amount of a superannuation lump sum is $100. Just before the benefit is paid, the value of the superannuation interest was $1000 (of which $200 was the tax free component and $800 was the taxable component). For the lump sum, the tax free component is $20 and the taxable component is $80.
For the purposes of subsection (2), determine the *value of the *superannuation interest, and the amount of each of those components of the interest, at whichever of the following times is applicable:
(a) if the *superannuation benefit is a *superannuation income stream benefit - when the relevant *superannuation income stream commenced;
(b) if the superannuation benefit is a *superannuation lump sum - just before the benefit is paid;
(c) despite paragraphs (a) and (b), if the superannuation benefit arises from the commutation of a superannuation income stream:
(i) if subparagraph (ii) does not apply - when the relevant superannuation income stream commenced; or
(ii) if the superannuation income stream is a *deferred superannuation income stream that had not commenced before the time the commutation happened - just before the time the commutation happened;
(d) despite paragraphs (a) and (b), if:
(i) the superannuation benefit is an *involuntary roll-over superannuation benefit paid from a superannuation interest; and
when that superannuation income stream commenced.
(ii) that interest was supporting a superannuation income stream immediately before that benefit was paid;
Subsection (2) does not apply to a *superannuation benefit if any of the following applies:
(a) the regulations specify an alternative method for determining those components of the benefit;
(b) a determination under subsection (5) specifies an alternative method for determining those components of the benefit;
(c) the Commissioner consents in writing to the use of another method for determining those components of the benefit.
If so, use that method to determine those components of the benefit.307-125(5)
For the purposes of paragraph (4)(b), the Commissioner may determine, by legislative instrument, one or more alternative methods for determining those components of a *superannuation benefit. 307-125(6)
If the *superannuation benefit is an *unclaimed money payment or a *small superannuation account payment, for the purposes of this section:
(a) treat the benefit as a superannuation benefit paid from a *superannuation interest; and
(b) treat the amount of the benefit as the *value of that superannuation interest just before the time the benefit is paid.