INCOME TAX ASSESSMENT ACT 1997 - SECT 294.135 Transfer balance credit--special rule for capped defined benefit income streams

INCOME TAX ASSESSMENT ACT 1997 - SECT 294.135

  (1)   Section   294 - 25 applies in relation to a * capped defined benefit income stream as if a reference in that section to the * value of a * superannuation interest were a reference to the * special value of the superannuation interest.

Meaning of special value--lifetime products

  (2)   The special value , at a particular time, of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream covered by item   1 or 2 of the table in subsection   294 - 130(1), is the amount worked out using the formula:

where:

"annual entitlement" is worked out by:

  (a)   dividing the amount of the first * superannuation income stream benefit you are entitled to receive from the income stream just after that time by the number of whole days to which that benefit relates; and

  (b)   multiplying the result by 365.

Meaning of special value--life expectancy and market linked products

  (3)   The special value , at a particular time, of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream covered by any of items   3 to 7 of the table in subsection   294 - 130(1), is the amount worked out using the formula:

where:

"annual entitlement" has the same meaning as in subsection   (2) of this section.

"remaining term" means the number of years remaining at that time in the period throughout which * superannuation income stream benefits are payable under the income stream, rounded up to the next whole number.

Regulations

  (4)   The regulations may specify a method for determining the special value of a * superannuation interest that supports a * superannuation income stream prescribed by regulations made for the purposes of subsection   294 - 130(2).