Income Tax Assessment Act 1997



Division 294 - Transfer balance cap  

Subdivision 294-C - Transfer balance debits  

Operative provisions

SECTION 294-90   Payment splits  

A *transfer balance debit arises in your *transfer balance account if:

(a)    subsection (2) provides that the debit arises; and

(b)    the Commissioner is notified in the *approved form that the debit has arisen.

Payment splits

A debit arises if:

(a)    a *superannuation interest is subject to a *payment split but remains an interest of the *member spouse; and

(b)    the superannuation interest supports a *superannuation income stream that is in the *retirement phase; and

(c)    as a result of the payment split, a proportion of all *superannuation income stream benefits from the income stream is to be paid to a *non-member spouse; and

(d)    as a result, the member spouse and the non-member spouse are both *retirement phase recipients of the superannuation income stream.

The amount of the debit is:

(a)    if you are the *member spouse - the proportion mentioned in paragraph (2)(c) ; and

(b)    if you are the *non-member spouse - the remaining proportion;

of the *value, on the day the debit arises, of the *superannuation interest that supports the *superannuation income stream affected by the *payment split.

The debit arises at the later of:


the operative time (within the meaning of Part VIIIB or VIIIC (as the case may be) of the Family Law Act 1975 ) for the *payment split; and

(b)    at the start of the day you first start to have a *transfer balance account.

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