ATO Interpretative Decision
ATO ID 2003/808
Superannuation
Reasonable benefit limits (RBL): effect of changing the terms of a superannuation pension after the date of commencement.FOI status: may be released
This version is no longer current. Please follow this link to view the current version. |
-
This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Has a new superannuation pension commenced when a pension that met the standards of subregulation 1.06(6) of the Superannuation Industry (Supervision) Regulations 1994 (SISR) had its terms changed to meet the standards of subregulation 1.06(2) of the SISR?
Decision
Yes. A new superannuation pension has commenced when a pension that met the standards of subregulation 1.06(6) of the SISR had its terms changed to meet the standards of subregulation 1.06(2) of the SISR.
Facts
A recipient receives a superannuation pension that meets the standards of subregulation 1.06(6) of the SISR. After the pension had commenced the trustee of the superannuation fund offered the recipient the opportunity to waive the right to commute the pension except in accordance with the standards specified in paragraph 1.06(2)(e) of the SISR. The recipient accepted this offer. The superannuation pension that the recipient is currently receiving meets the standards of subregulation 1.06(2) of the SISR.
Reasons for Decision
When a change is made to the terms of a superannuation pension that had commenced to be paid and that did not meet the standards of subregulation 1.06(2) and as a result of that change the pension meets the standards of subregulation 1.06(2) of the SISR, it is the Commissioner's view that the original pension has ceased and a new pension has commenced to be paid.
The cessation of the original pension and the commencement of the new pension from the same superannuation fund is effected by way of an internal roll-over under subsection 27A(1), subsection 27A(12) and section 27D of the Income Tax Assessment Act 1936 (ITAA 1936). The commutation and roll-over of the pension is reportable for RBL purposes under section 140Q of the ITAA 1936. The commencement of the new pension is reportable for RBL purposes under section 140M of the ITAA 1936.
Date of decision: 2 September 2003Year of income: Year ended 30 June 2004
Legislative References:
Income Tax Assessment Act 1936
Subsection 27A(1)
Subsection 27A(12)
Section 27AAAA
Section 27D
Section 140M
Section 140Q
Regulation 1.06 Related ATO Interpretative Decisions
ATO ID 2002/462
ATO ID 2002/586
Keywords
Reasonable Benefit Limits
RBL Determination
Pension & annuity standards
Annuities & superannuation pensions
ISSN: 1445-2782
| Date: | Version: | |
| You are here → | 2 September 2003 | Original statement |
| 16 April 2010 | Archived |