Tax Laws Amendment (2007 Measures No. 4) Act 2007 (143 of 2007)

Schedule 5   Superannuation amendments

Part 1   Main amendments

Income Tax Assessment Act 1997

14   After subsection 307-5(3)

Insert:

(3A) For the purposes of paragraph (3)(d), the Commissioner may make a decision in writing that the superannuation benefit is not a superannuation member benefit under subsection (3), if:

(a) both of these conditions are satisfied:

(i) the payment of the benefit is delayed because of legal action about entitlement to the benefit;

(ii) the benefit is paid more than 6 months after the legal action ceases; or

(b) both of these conditions are satisfied:

(i) the payment of the benefit is delayed because of reasonable delays in the process of identifying and making initial contact with potential recipients of the benefit;

(ii) the benefit is paid more than 6 months after that process is completed.

(3B) In making a decision under subsection (3A), the Commissioner must have regard to the following matters:

(a) whether there was any action taken to try to pay the benefit within the 6 months after the cessation of the legal action or the completion of the process, and if so, the nature of that action;

(b) whether there were any factors beyond the control of the entity that paid the benefit, or of the person to whom the benefit was paid, that prevented the payment of the benefit within those 6 months;

(c) the circumstances of the person to whom the benefit was paid, and the actions of that person in relation to the benefit.