INCOME TAX ASSESSMENT REGULATIONS 1997

PART 3 - SUPERANNUATION BENEFITS PAID FROM COMPLYING PLANS ETC  

Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-C - Components of a superannuation benefit  

REGULATION 307-125.01   COMPONENTS OF MEMBER BENEFITS ACCRUING BEFORE 1 JULY 1999 PAID FROM THE MILITARY SUPERANNUATION AND BENEFITS SCHEME  

307-125.01(1)  
For paragraph 307-125(4)(a) of the Act, a member of the Military Superannuation and Benefits Scheme who is below preservation age may, subject to subregulation (2), determine the amount of the components of his or her member benefits accruing before 1 July 1999 paid from the Military Superannuation and Benefits Scheme in respect of the member.

307-125.01(2)  
For subregulation (1), the maximum amount that a member may determine as a component of his or her member benefits accruing before 1 July 1999, whether by a single choice or cumulatively, may not exceed:


(a) for the tax free component of his or her member benefits accruing before 1 July 1999 - the amount worked out under section 307-210 of the Act for the interest; and


(b) for the taxable component of his or her member benefits accruing before 1 July 1999 - the amount worked out under section 307-215 of the Act for the interest.

Example

A member of the Military Superannuation and Benefits Scheme has an amount of his or her member benefits accruing before 1 July 1999 of $1 000. Just before the benefit is paid, the value of the tax free component is $800 and the taxable component is $200. Before reaching preservation age, the member takes a lump sum benefit of $900.

Under subregulation (1), the member is able to determine the amount of the benefit that will be the tax free component and the amount that will be the taxable component of the benefit. However, subregulation (2) prevents the member from treating more than $800 of the superannuation benefit as tax free.

Note:

A preserved superannuation benefit paid in respect of a member of the Military Superannuation and Benefits Scheme is paid in accordance with subsection 307-125(2) of the Act.

307-125.01(3)  
This regulation applies to a superannuation benefit paid from the Military Superannuation and Benefits Scheme on or after 1 July 2007.

307-125.01(4)  
In this regulation:

Military Superannuation and Benefits Scheme
is the scheme that is established by clause 2 of the Military Superannuation and Benefits Trust Deed.




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