ATO Interpretative Decision

ATO ID 2003/808 (Withdrawn)

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This ATO ID is withdrawn from the database because it contains a view in respect of a provision of the Income Tax Assessment Act 1936 that doesn't apply after the [2006-2007] income year. Despite it's withdrawal from the database, this ATO ID.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Status of this decision: Decision Withdrawn 16 April 2010

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 2003

Year 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

Superannuation Industry Supervision (Regulations) Act 1994
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

Business Line: Superannuation

Date of publication: 5 September 2003

ISSN: 1445-2782

history

	Date:	Version:
	2 September 2003	Original statement
You are here →	16 April 2010	Archived

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