Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 296 - Better targeted superannuation concessions  

Subdivision 296-B - Better targeted superannuation concessions  

SECTION 296-65.03   RELEVANT SUPERANNUATION EARNINGS - INTERESTS IN SMALL SUPERANNUATION FUNDS  

296-65.03(1)    
For the purposes of subsection 296-65(5) of the Act, the amount attributable to a superannuation interest (the relevant interest ) in a small superannuation fund for your year must be determined in accordance with this section for an income year (the fund year ) of the fund.

Note:

If you die during your year, amounts from multiple fund years may be attributable to the relevant interest for your year (see subsection 296-70.04(2) ).

296-65.03(2)    
The amount is to be worked out in accordance with the following formula:

Division 296 fund earnings for the fund for the fund year	×	Average total superannuation balance value of the relevant interest
		Average sum of the total superannuation balance values of non-excluded superannuation interests	+	Average sum of the value of all pension reserves

where:

average sum of the total superannuation balance values of non-excluded superannuation interests
means the average for the fund year of the sum of the total superannuation balance values of all superannuation interests in the fund, other than superannuation interests to which subsection 296-65(2) of the Act applies.

average total superannuation balance value of the relevant interest
means the average for the fund year of the total superannuation balance value of the relevant interest.

average sum of the value of all pension reserves
means the average for the fund year of the sum of the values of all pension reserves of the fund.

296-65.03(3)    
The amount worked out under subsection (2) is taken to be nil if the sum of the following amounts is nil:

(a)    the average sum of the total superannuation balance values of non-excluded superannuation interests;

(b)    the average sum of the value of all pension reserves.

296-65.03(4)    
For the purposes of subsection (2) :

(a)    if a superannuation interest in the fund exists for only part of the fund year, the interest is taken to have a total superannuation balance value of nil for any period in the fund year during which the interest does not exist; and

(b)    if a pension reserve of the fund exists for only part of the fund year, the pension reserve is taken to have a value of nil for any period in the fund year during which the pension reserve does not exist.

296-65.03(5)    
For the purposes of working out the average total superannuation balance value of the relevant interest, if:

(a)    you die; and

(b)    because of your death, another person becomes a retirement phase recipient of a superannuation income stream supported by the relevant interest;

the total superannuation balance value of the relevant interest is taken to be nil for any time after the relevant interest begins to support the income stream.

Note:

The total superannuation balance value of the relevant interest is still taken into account in working out the average sum of the total superannuation balance values of all of the superannuation interests in the fund. This may happen if, for example, after your death the relevant interest continues to be an interest in the fund because it supports a superannuation income stream as mentioned in paragraph (5)(b) .

296-65.03(6)    
The amount attributable to the superannuation interest must be determined wholly by reference to an actuary ' s certificate, unless either:

(a)    the Division 296 fund earnings for the fund for the fund year are nil; or

(b)    all of the following apply:

(i) one individual (the sole member ) is a member of the fund for all or part of the fund year;

(ii) no other individual is a member of the fund at any time in the fund year;

(iii) the sole member does not, at any time in the fund year, hold a superannuation interest in the fund that subsection 296-65(5) of the Act does not apply to.