INCOME TAX ASSESSMENT ACT 1997 - SECT 294.25 Transfer balance credits
INCOME TAX ASSESSMENT ACT 1997 - SECT 294.25
Transfer balance credits(1) The following table sets out when a credit arises in your * transfer balance account and the amount of the credit. The credit is called a transfer balance credit .
Credits in the transfer balance account | |||
Item | If: | A credit of: | Arises: |
1 | just before 1 July 2017, you are the * retirement phase recipient of a * superannuation income stream | the * value, just before 1 July 2017, of the * superannuation interest that supports the superannuation income stream | on the later of: (a) 1 July 2017; and (b) if you are a reversionary beneficiary--the last day of the period of 12 months beginning on the day a * superannuation income stream benefit first becomes payable from the income stream |
2 | on a day (the starting day ) on or after 1 July 2017, you start to be the * retirement phase recipient of a * superannuation income stream | the * value on the starting day of the * superannuation interest that supports the superannuation income stream | (a) on the starting day, unless paragraph (b) applies; or (b) if you are a reversionary beneficiary--at the end of the period of 12 months beginning on the starting day |
3 | you have * excess transfer balance at the end of a day | your * excess transfer balance earnings for that day | at the start of the next day |
4 | a * transfer balance credit arises under section 294 - 55 because of a repayment of a limited recourse borrowing arrangement | the amount of the credit specified in section 294 - 55 | |
5 | a * transfer balance credit arises under regulations made for the purposes of this item | the amount of the credit worked out in accordance with the regulations | at the time specified in the regulations |
Note 1: The amount of the transfer balance credit is modified for certain capped defined benefit income streams: see Subdivision 294 - D.
Note 2: For the meaning of excess transfer balance earnings , see section 294 - 235.
Note 3: If a payment split applies to payments from the superannuation income stream, a debit arises under section 294 - 90.
No crediting of earnings if determination issued
(2) Despite item 3 of the table in subsection (1), no credit arises in your * transfer balance account under that item because of * excess transfer balance at the end of a day if the day is in the period:
(a) starting on the day the Commissioner makes an * excess transfer balance determination in respect of you; and
(i) unless subparagraph (ii) applies--the first day on which the sum of all * transfer balance debits arising in your * transfer balance account since the determination was issued equals or exceeds the * crystallised reduction amount; or
(ii) if a * transfer balance credit arises in your transfer balance account before the day mentioned in subparagraph (i)--the day on which that credit arises.
Note: For provisions about excess transfer balance determinations, see Division 136 in Schedule 1 to the Taxation Administration Act 1953.
Regulations may provide for exceptions
(3) The regulations may provide that an item of the table in
subsection (1) does not apply to a class of *
superannuation income streams specified in the regulations.