Income Tax Assessment Act 1997



Division 118 - Exemptions  

Subdivision 118-D - Insurance and superannuation  

SECTION 118-305   Superannuation  

A *capital gain or *capital loss is disregarded if you make it from a *CGT event happening in relation to any of the following:

(a) a right to an allowance, annuity or capital amount payable out of a *superannuation fund or *approved deposit fund;

(b) a right to an asset of such a fund;

(c) a right to any part of such an allowance, annuity, capital amount or asset.


Angela retires from her employment and receives a lump sum payment from her superannuation fund. This is an example of CGT event C2 (her rights to receive the payment ending). There are no CGT consequences for Angela.

However, this exemption is not available if:

(a) you are the trustee of the fund and a *CGT event happens in relation to a *CGT asset of the fund; or

(b) an entity receives a payment or property where:

(i) the entity was not a member of the fund; and

(ii) the entity *acquired the right to the payment or property for consideration.


Subsection (2) does not apply if:

(a) a *payment split applies to a *splittable payment; and

(b) as a result, a payment is made to the *non-member spouse (or to his or her *legal personal representative if the non-member spouse has died).


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