Income Tax Assessment Act 1936

Part IX repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-2008 income year and later years.

Former Part IX inserted by No 97 of 1989 and amended by No 105 of 1989.

Div 3 repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-08 income year and later years.

S 279B repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-08 income year and later years. S 279B formerly read:

SECTION 279B DEDUCTION FOR FUTURE SERVICE ELEMENT OF DEATH OR DISABILITY BENEFITS  
279B(1) [Calculation of allowable deduction]  

If:

(a) the trustee of a complying superannuation fund makes an election under subsection 279(4) in relation to a year of income; and

(b) in the year of income, the trustee pays a death or disability ETP in relation to a member of the fund in consequence of the termination of any employment of the member;

there is allowable as a deduction in respect of the year of income an amount calculated using the following formula:

Death or disability ETP

×

Days in future service period Days in total service period

where:

Death or disability ETP is the amount of the death or disability ETP;

Days in future service period is the number of whole days in the period commencing on the day the termination occurred and ending on the last retirement date;

Days in total service period is the sum of:

(c) the number of whole days in the eligible service period in relation to the death or disability ETP; and

(d) Days in future service period.

279B(2) [Payment of death or disability benefit on termination]  

For the purposes of this section, where:

(a) in a year of income, the trustee of a complying superannuation fund commences to pay an annuity (within the meaning of section 27H );

(b) the annuity consists of a death or disability benefit in relation to a member of the fund; and

(c) the annuity was paid in consequence of the termination of any employment of the member;

the following provisions have effect:

(d) the trustee shall be treated as if the trustee had paid a death or disability ETP covered by paragraph (b) of the definition of " eligible termination payment " in subsection 27A(1) in lieu of that annuity;

(e) the amount of that eligible termination payment shall be taken to be the net present value of the annuity as at the date of commencement of payment of the annuity.

279B(3) [Reference to death or disability ETP]  

A reference in this section to a death or disability ETP is a reference to a payment:

(a) that consists of a death or disability benefit paid in relation to a member of a complying superannuation fund; and

(b) that is an ETP or would be an ETP if:

(i) a reference in the definition of " eligible termination payment " in subsection 27A(1) to a payment made in respect of a taxpayer included a reference to a payment (within the meaning of Subdivision AA of Division 2 of Part III ) made (whether voluntarily, by agreement or by a compulsion of law) after the death of the taxpayer to or for the benefit of a dependant of the taxpayer; and

(ii) subsection 27A(4) had not been enacted.

279B(4) [Member unable to perform normal duties]  

For the purposes of this section, where, in a year of income, the trustee of a complying superannuation fund pays a benefit covered by paragraph (c) of the definition of " death or disability benefit " in subsection 267(1) during a period when a member of the fund was unable to perform the normal duties of the member ' s employment, the following provisions have effect:

(a) the trustee shall be treated as if the trustee had paid a death or disability ETP covered by paragraph (b) of the definition of " eligible termination payment " in subsection 27A(1) in lieu of that benefit;

(b) the amount of that eligible termination payment shall be taken to be the total amount of the benefit paid in that year of income;

(c) that eligible termination payment shall be taken to have been paid in consequence of the termination of that employment;

(d) that employment shall be taken to have been terminated on the day on which the member became unable to perform the normal duties of that employment.

S 279B inserted by No 105 of 1989.