Income Tax Assessment Act 1997



Division 253 - Financial claims scheme for account-holders with insolvent ADIs  

Subdivision 253-A - Tax treatment of entitlements under financial claims scheme  

Operative provisions

SECTION 253-5   Payment of entitlement under financial claims scheme treated as payment from ADI  

This Act applies to you as if an amount paid to you, or applied for your benefit, to meet your entitlement under Division 2AA (Financial claims scheme for account-holders with insolvent ADIs) of Part II of the Banking Act 1959 connected with an account with an *ADI had been paid to you by the ADI under the terms and conditions of the agreement for keeping the account.


This section has effect subject to more detailed provisions about:

  • (a) entitlements relating to retirement savings accounts (see section 306-25 ); and
  • (b) entitlements relating to farm management deposits (see Subdivision 393-C ).
  • 253-5(2)  
    To avoid doubt, subsection (1) does not affect the operation of Part 2-5 in Schedule 1 to the Taxation Administration Act 1953 .


    Division 21 in Schedule 1 to the Taxation Administration Act 1953 contains special provisions about how Part 2-5 in that Schedule operates in relation to the meeting of entitlements under Division 2AA of Part II of the Banking Act 1959 .


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