Income Tax Assessment Act 1997

s 296-135 — When tax is payable—amended assessments

(1) If the Commissioner amends your assessment, any extra * assessed Division 296 tax resulting from the amendment is due and payable 84 days after the day the Commissioner gives you notice of the amended assessment. Exception for tax deferred to a Division 296 debt account (2) However, subsection (1) does not apply to an amount of extra * assessed Division 296 tax that is * deferred to a Division 296 debt account for a * superannuation interest. Note 1: For deferred to a Division 296 debt account , see Division 134 in Schedule 1 to the Taxation Administration Act 1953 . Note 2: For release of money from a superannuation plan to pay these amounts, see Division 131 in that Schedule.

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-140 — General interest charge

If an amount of * assessed Division 296 tax or * shortfall interest charge on assessed Division 296 tax that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the * general interest charge on the unpaid amount for each day in the period that: (a) begins on the day on which the amount was due to be paid; and (b) ends on the last day on which, at the end of the day, any of the following remains unpaid: (i) the assessed Division 296 tax or the shortfall interest charge; (ii) general interest charge on any of the assessed Division 296 tax or the shortfall interest charge. Note 1: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 . For the rate of general interest charge payable under this section, see subsection 8AAC(2A) of that Act. Note 2: Shortfall interest charge is worked out under Division 280 in Schedule 1 to that Act. Note 3: See section 5 ‑ 10 of this Act for when the amount of shortfall interest charge becomes due and payable.

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-190 — What this Subdivision is about

If you receive a departing Australia superannuation payment, you are entitled to a refund of any Division 296 tax you have paid. Table of sections Operative provisions 296 ‑ 195 Who is entitled to a refund 296 ‑ 200 Amount of the refund 296 ‑ 205 Entitlement to refund stops all Division 296 tax liabilities

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-195 — Who is entitled to a refund

You are entitled to a refund if: (a) you have made payments of any of the following: (i) * assessed Division 296 tax; (ii) a voluntary payment made under section 134 ‑ 70 in Schedule 1 to the Taxation Administration Act 1953 for the purpose of reducing the amount by which a * Division 296 debt account for a * superannuation interest is in debit; (iii) * Division 296 debt account discharge liability; and (b) you receive a * departing Australia superannuation payment; and (c) you apply to the Commissioner in the * approved form for the refund. Note: How the refund is applied is set out in Part IIB of the Taxation Administration Act 1953 .

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-200 — Amount of the refund

(1) The amount of the refund to which you are entitled is the sum of the payments mentioned in paragraph 296 ‑ 195(a) that you have made. (2) However, the amount of the refund is reduced by the amount of any refunds to which you are entitled under a previous application of this Subdivision. Exception—Division 296 tax attributable to period when you are an Australian resident (3) Despite subsection (1), if: (a) at any time in your 2026 ‑ 27 income year, or a later income year, you are an Australian resident (but not a * temporary resident); and (b) a payment mentioned in paragraph 296 ‑ 195(a) that you have made relates, or is reasonably attributable, to that income year; the payment is to be disregarded in working out under subsection (1) of this section the amount of the refund to which you are entitled.

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-205 — Entitlement to refund stops all Division 296 tax liabilities

(1) The Commissioner may decide to release you from any existing or future liability to pay * Division 296 tax or * Division 296 debt account discharge liability if: (a) you become entitled to a refund under section 296 ‑ 195; or (b) you would become entitled to such a refund, if you were to pay the liability and paragraph 296 ‑ 195(c) were disregarded. (2) The Commissioner may take such action as is necessary to give effect to a decision under subsection (1).

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-255 — What this Subdivision is about

Disregard LRBA amounts in working out your total superannuation balance for the purposes of this Division. This Division has effect despite subsection 73(3A) of the Australian Capital Territory (Self ‑ Government) Act 1988 . Table of sections Operative provisions 296 ‑ 260 Disregard LRBA amounts in working out total superannuation balance 296 ‑ 265 Interaction with the Australian Capital Territory (Self ‑ Government) Act 1988

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-260 — Disregard LRBA amounts in working out total superannuation balance

For the purposes of this Division, disregard paragraph 307 ‑ 230(1)(d). Note: If you have an LRBA amount under section 307 ‑ 231 (about limited recourse borrowing arrangements), paragraph 307 ‑ 230(1)(d) includes the amount in your total superannuation balance.

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 296-265 — Interaction with the Australian Capital Territory (Self ‑ Government) Act 1988

This Division has effect despite subsection 73(3A) of the Australian Capital Territory (Self ‑ Government) Act 1988 . Note: That subsection relates to the remuneration of judges and magistrates of the Australian Capital Territory.

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 301-1 — What this Division is about

This Division sets out the tax treatment of superannuation benefits received by members of complying plans etc. This treatment varies depending on the age of the member when they receive the benefit. This Division also sets out the tax treatment of departing Australia superannuation payments and certain payments less than $200.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-5 — Division applies to superannuation member benefits paid from complying plans etc.

This Division applies to: (a) * superannuation member benefits that are paid from a * complying superannuation plan; and (b) * superannuation guarantee payments; and (c) * small superannuation account payments; and (d) * unclaimed money payments; and (e) * superannuation co ‑ contribution benefit payments; and (f) * superannuation annuity payments. Note: For the tax treatment of superannuation death benefits paid from complying plans, see Division 302. Superannuation benefits paid from superannuation plans that are not complying superannuation plans are dealt with in Division 305.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-10 — All superannuation benefits are tax free

If you are 60 years or over when you receive a * superannuation benefit, the benefit is not assessable income and is not * exempt income. Note 1: Your superannuation benefit may be a superannuation lump sum or a superannuation income stream benefit: see sections 307 ‑ 65 and 307 ‑ 70. Note 2: If your superannuation benefit includes an element untaxed in the fund, see Subdivision 301 ‑ C. Note 3: If your superannuation benefit is a superannuation income stream benefit that is defined benefit income, see Subdivision 303 ‑ A.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 301-15 — Tax free status of tax free component

If you are under 60 years but have reached your * preservation age when you receive a * superannuation benefit, the * tax free component of the benefit is not assessable income and is not * exempt income. Note 1: Your superannuation benefit may be a superannuation lump sum or a superannuation income stream benefit: see sections 307 ‑ 65 and 307 ‑ 70). Note 2: For tax free component , see Subdivision 307 ‑ C.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-20 — Superannuation lump sum—taxable component taxed at 0% up to low rate cap amount, 15% on remainder

(1) If you are under 60 years but have reached your * preservation age when you receive a * superannuation lump sum, the * taxable component of the lump sum is assessable income. Note 1: For taxable component , see Subdivision 307 ‑ C. Note 2: If your lump sum includes an element untaxed in the fund, see Subdivision 301 ‑ C. (2) You are entitled to a * tax offset that ensures that the rate of income tax on the amount mentioned in subsection (3) does not exceed 0%. (3) The amount is so much of the total of the * taxable components included in your assessable income for the income year under subsection (1) as does not exceed your * low rate cap amount (see section 307 ‑ 345) for the income year. (4) You are entitled to a * tax offset that ensures that the rate of income tax on the amount mentioned in subsection (5) does not exceed 15%. (5) The amount is so much of the total of the * taxable components included in your assessable income for an income year under subsection (1) as exceeds your * low rate cap amount for the income year. Note: This amount will be nil if the total of the taxable components falls short of your low rate cap amount for the income year.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-25 — Superannuation income stream—taxable component attracts 15% offset

(1) If you are under 60 years but have reached your * preservation age when you receive a * superannuation income stream benefit, the * taxable component of the benefit is assessable income. (2) You are entitled to a * tax offset equal to 15% of the * taxable component of the benefit. Note 1: For taxable component , see Subdivision 307 ‑ C. Note 2: If your superannuation income stream benefit includes an element untaxed in the fund, see Subdivision 301 ‑ C.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-30 — Tax free status of tax free component

If you are under your * preservation age when you receive a * superannuation benefit, the * tax free component of the benefit is not assessable income and is not * exempt income. Note 1: Your superannuation benefit may be a superannuation lump sum or a superannuation income stream benefit: see sections 307 ‑ 65 and 307 ‑ 70. Note 2: For tax free component , see Subdivision 307 ‑ C.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-35 — Superannuation lump sum—taxable component taxed at 20%

(1) If you are under your * preservation age when you receive a * superannuation lump sum, the * taxable component of the lump sum is assessable income. Note: For taxable component , see Subdivision 307 ‑ C. (2) You are entitled to a * tax offset that ensures that the rate of income tax on the * taxable component of the lump sum does not exceed 20%. Note: If your lump sum includes an element untaxed in the fund, see Subdivision 301 ‑ C.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-40 — Superannuation income stream—taxable component is assessable income, 15% offset for disability benefit

(1) If you are under your * preservation age when you receive a * superannuation income stream benefit, the * taxable component of the benefit is assessable income. Note: For taxable component , see Subdivision 307 ‑ C. Offset for disability benefit (2) If the benefit is a * superannuation income stream benefit and a * disability superannuation benefit, you are entitled to a * tax offset equal to 15% of the * taxable component of the benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-90 — Tax free component and element taxed in fund dealt with under Subdivision 301 ‑ B, but element untaxed in the fund dealt with under this Subdivision

If you receive a * superannuation benefit that includes an * element untaxed in the fund: (a) the * tax free component (if any) of the benefit is treated in the same way as the tax free component of a superannuation benefit under Subdivision 301 ‑ B; and (b) the * element taxed in the fund (if any) included in the benefit is treated in the same way as the taxable component of a superannuation benefit under Subdivision 301 ‑ B; and (c) the element untaxed in the fund is treated in accordance with this Subdivision. Note: If your superannuation benefit is a superannuation income stream benefit that is defined benefit income, see Subdivision 303 ‑ A.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 301-95 — Superannuation lump sum—element untaxed in fund taxed at 15% up to untaxed plan cap amount, top rate on remainder

(1) If you are 60 years or over when you receive a * superannuation lump sum from a * superannuation plan, the * element untaxed in the fund of the lump sum is assessable income. (2) You are entitled to a * tax offset that ensures that the rate of income tax on the amount mentioned in subsection (3) does not exceed 15%. Note: The remainder of the element untaxed in the fund is taxed at the top marginal rate in accordance with the Income Tax Rates Act 1986 . (3) The amount is so much of the * element untaxed in the fund as does not exceed your * untaxed plan cap amount for the * superannuation plan at the time you receive the benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-100 — Superannuation income stream—element untaxed in fund attracts 10% offset

(1) If you are 60 years or over when you receive a * superannuation income stream benefit, the * element untaxed in the fund of the benefit is assessable income. (2) You are entitled to a * tax offset equal to 10% of the * element untaxed in the fund of the benefit. Note: If your superannuation income stream benefit is defined benefit income, see Subdivision 303 ‑ A.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 301-105 — Superannuation lump sum—element untaxed in fund taxed at 15% up to low rate cap amount, 30% up to untaxed plan cap amount, top rate on remainder

(1) If you are under 60 years but have reached your * preservation age when you receive a * superannuation lump sum from a * superannuation plan, the * element untaxed in the fund of the lump sum is assessable income. (2) You are entitled to a * tax offset that ensures that the rate of income tax on the amount worked out under subsection (3) does not exceed 30%. (3) The amount is so much of the * element untaxed in the fund as does not exceed your * untaxed plan cap amount for the * superannuation plan at the time you receive the benefit. Note: To the extent that the element untaxed in the fund exceeds the amount worked out under this subsection, it is taxed at the top marginal rate in accordance with the Income Tax Rates Act 1986 . (4) If you are entitled to one or more * tax offsets under subsection (2) for * superannuation benefits that you receive in an income year, you are entitled to a tax offset that ensures that the rate of income tax on the amount worked out under subsection (5) does not exceed 15%. (5) The amount is so much of the total of the one or more amounts worked out under subsection (3) as does not exceed your * low rate cap amount for the income year. (6) If you are also entitled to a * tax offset under subsection 301 ‑ 20(2) for the income year, reduce your * low rate cap amount for the purposes of subsection (5) of this section for the income year by the amount mentioned in subsection 301 ‑ 20(3).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-110 — Superannuation income stream—element untaxed in fund is assessable income

If you are under 60 years but have reached your * preservation age when you receive a * superannuation income stream benefit, the * element untaxed in the fund of the benefit is assessable income.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-115 — Superannuation lump sum—element untaxed in fund taxed at 30% up to untaxed plan cap amount, top rate on remainder

(1) If you are under your * preservation age when you receive a * superannuation lump sum from a * superannuation plan, the * element untaxed in the fund of the lump sum is assessable income. (2) You are entitled to a * tax offset that ensures that the rate of income tax on the amount mentioned in subsection (3) does not exceed 30%. Note: The remainder of the element untaxed in the fund is taxed at the top marginal rate in accordance with the Income Tax Rates Act 1986 . (3) The amount is so much of the * element untaxed in the fund as does not exceed your * untaxed plan cap amount for the * superannuation plan at the time you receive the benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-120 — Superannuation income stream—element untaxed in fund is assessable income

If you are under your * preservation age when you receive a * superannuation income stream benefit, the * element untaxed in the fund of the benefit is assessable income.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-125 — Unclaimed money payments by the Commissioner

For the purposes of this Subdivision, treat a * superannuation lump sum paid by the Commissioner under subsection 17(2), 20H(2), (2AA), (2A) or (3), 20QF(2), 21E(2), 22B(2) or 24G(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 as if it were paid from a * superannuation plan.

Amendment history: Inserted by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009 | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 16 of 2019, effective Sch 3 (items 1–15, 38): 13 Mar 2019 (s 2(1) item 2) | Amended by No 24 of 2021, effective Sch 1 (items 1–14): 23 Mar 2021 (s 2(1) item 2) Sch 2 (items 1–14): 29 Mar 2021 (s 2(1) item 3)

s 301-170 — Departing Australia superannuation payments

(1) A * superannuation lump sum is a departing Australia superannuation payment if it: (a) is paid to a person who has departed Australia; and (b) is paid: (i) in accordance with regulations under the Superannuation Industry (Supervision) Act 1993 or the Retirement Savings Accounts Act 1997 that are specified in regulations made for the purposes of this definition; or (ii) in accordance with section 67A of the Small Superannuation Accounts Act 1995 ; or (iii) by an exempt public sector superannuation scheme (within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993 ) and is made in accordance with rules of the fund that are substantially similar to the regulations specified as mentioned in subparagraph (i). (2) Also, a * superannuation lump sum is a departing Australia superannuation payment if it is paid under subsection 20H(2), (2AA), (2A) or (3) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 . (3) Despite subsection (2), a * superannuation lump sum paid under subsection 20H(2), (2AA), (2A) or (3) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 because a person has been identified in a notice under section 20C of that Act is not a departing Australia superannuation payment if, when it is paid, the Commissioner is satisfied that: (a) the person has not been, under the Migration Act 1958 , the holder of a temporary visa that ceased to be in effect at least 6 months ago; or (b) the person has been the holder of such a visa but has not left Australia (within the meaning of that Act) at least 6 months ago but after starting to be the holder of the visa. (4) Despite subsection (2), a * superannuation lump sum that is paid under subsection 20H(2), (2AA), (2A) or (3) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 and is prescribed by the regulations for the purposes of this subsection is not a departing Australia superannuation payment .

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 151 of 2008, effective Sch 1 (items 27–37): 18 Dec 2008 (s 2(1) item 2) | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15)

s 301-175 — Treatment of departing Australia superannuation benefits

(1) Despite anything else in this Division, if you receive a * superannuation benefit that is a * departing Australia superannuation payment, the benefit is not assessable income and is not * exempt income. (2) However, you are liable to pay income tax on that payment at the rate declared by the Parliament in respect of * departing Australia superannuation payments. Note 1: The tax is imposed in the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 and the amount of the tax is set out in that Act. Note 2: See the Taxation Administration Act 1953 for provisions dealing with the payment of the tax.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 301-225 — Superannuation lump sum member benefits less than $200 are tax free

(1) Despite anything else in this Division (apart from Subdivision 301 ‑ D), a * superannuation member benefit that you receive is not assessable income and is not * exempt income if: (a) the benefit is a * superannuation lump sum; and (b) the amount of the benefit is less than $200; and (c) the * value of the * superannuation interest from which the benefit is paid is nil just after the benefit is paid; and (d) the requirements (if any) specified in the regulations in relation to the benefit are satisfied. (2) Despite anything else in this Division (apart from Subdivision 301 ‑ D), a * superannuation member benefit that you receive is not assessable income and is not * exempt income if: (a) the benefit is a * superannuation lump sum; and (b) the benefit is paid to you: (i) under subsection 20QF(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in a case covered by paragraph (d) of that subsection; or (ia) under subsection 21E(2) of that Act in a case covered by paragraph (d) of that subsection; or (ib) under subsection 22B(2) of that Act in a case covered by paragraph (d) of that subsection; or (ii) under subsection 24G(2) of that Act in a case covered by paragraph (d) of that subsection; and (c) the amount of the benefit is less than $200.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 16 of 2019, effective Sch 3 (items 1–15, 38): 13 Mar 2019 (s 2(1) item 2) | Amended by No 24 of 2021, effective Sch 1 (items 1–14): 23 Mar 2021 (s 2(1) item 2) Sch 2 (items 1–14): 29 Mar 2021 (s 2(1) item 3)

s 301-275 — Veterans’ superannuation (invalidity pension) tax offset

(1) You are entitled to a * tax offset for an income year if: (a) you are an individual; and (b) during the income year, you receive one or more * superannuation lump sums that are payments of: (i) invalidity pay within the meaning of the Defence Force Retirement and Death Benefits Act 1973 ; or (ii) an invalidity pension under the superannuation scheme established under the Military Superannuation and Benefits Act 1991 ; or (iii) a pension mentioned in a paragraph of subsection 307 ‑ 70.02(1A) of the Income Tax Assessment (1997 Act) Regulations 2021 . (2) The amount of your * tax offset is worked out as follows: (a) first, work out the amount by which your basic income tax liability exceeds the total of the amount of your tax offsets (if any) for the income year under: (i) this Division (other than this Subdivision); and (ii) Subdivision AB of Division 17 of Part III of the Income Tax Assessment Act 1936 ; (b) next, work out the total of: (i) the amount worked out under paragraph (a); and (ii) the amounts (if any) of * Medicare levy and * Medicare levy (fringe benefits) surcharge you are liable to pay for the income year; (c) next, work out the total of: (i) the amount worked out under paragraph (a); and (ii) the amounts (if any) of Medicare levy and Medicare levy (fringe benefits) surcharge you are liable to pay for the income year; on the assumptions mentioned in subsection (3); (d) next, work out the amount (if any) by which the total worked out under paragraph (b) exceeds the total worked out under paragraph (c). (3) For the purposes of paragraph (2)(c), the assumptions are that: (a) each * superannuation lump sum mentioned in paragraph (1)(b) were a * superannuation income stream benefit; and (b) for the purposes of section 307 ‑ 125 (proportioning rule), the invalidity pay, invalidity pension or pension mentioned in paragraph (1)(b) of this section were a * superannuation income stream.

Amendment history: Inserted by No 29 of 2023, effective sch 1, sch 2 (items 12, 13, 15): 1 July 2023 (s 2(1) item 2) sch 9 (items 5-7): 24 June 2023 (s 2(1) item 5)

s 302-1 — What this Division is about

This Division sets out the tax treatment of superannuation death benefits received by members of complying plans etc. This treatment varies depending on the age of the deceased when they died (and in some cases on the age of the recipient of the benefit).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-5 — Division applies to superannuation death benefits paid from complying plans etc.

This Division applies to * superannuation death benefits that: (a) are paid from a * complying superannuation plan; or (b) are * superannuation guarantee payments, * small superannuation account payments, * unclaimed money payments, * superannuation co ‑ contribution benefit payments or * superannuation annuity payments. Note: For the tax treatment of superannuation member benefits paid from complying plans, see Division 301. Superannuation benefits paid from superannuation plans that are not complying superannuation plans are dealt with in Division 305.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 302-10 — Superannuation death benefits paid to trustee of deceased estate

(1) This section applies to you if: (a) you are the trustee of a deceased estate; and (b) you receive a * superannuation death benefit in your capacity as trustee. (2) To the extent that 1 or more beneficiaries of the estate who were * death benefits dependants of the deceased have benefited, or may be expected to benefit, from the * superannuation death benefit: (a) the benefit is treated as if it had been paid to you as a person who was a death benefits dependant of the deceased; and (b) the benefit is taken to be income to which no beneficiary is presently entitled. (3) To the extent that 1 or more beneficiaries of the estate who were not * death benefits dependants of the deceased have benefited, or may be expected to benefit, from the * superannuation death benefit: (a) the benefit is treated as if it had been paid to you as a person who was not a death benefits dependant of the deceased; and (b) the benefit is taken to be income to which no beneficiary is presently entitled.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-60 — All of superannuation lump sum is tax free

A * superannuation lump sum that you receive because of the death of a person of whom you are a * death benefits dependant is not assessable income and is not * exempt income.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-65 — Superannuation income stream benefits are tax free

A * superannuation income stream benefit that you receive because of the death of a person of whom you are a * death benefits dependant is not assessable income and is not * exempt income in either or both of the following cases: (a) you are 60 years or over when you receive the benefit; (b) the deceased died aged 60 or over. Note 1: If your superannuation income stream benefit includes an element untaxed in the fund, see section 302 ‑ 85. Note 2: If your superannuation income stream benefit is defined benefit income, see Subdivision 303 ‑ A.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 302-70 — Superannuation income stream—tax free status of tax free component

The * tax free component of a * superannuation income stream benefit that you receive because of the death of a person of whom you are a * death benefits dependant is not assessable income and is not * exempt income if: (a) you are under 60 when you receive the benefit; and (b) the deceased died aged under 60. Note: For tax free component , see Subdivision 307 ‑ C.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-75 — Superannuation income stream—taxable component attracts 15% offset

(1) The * taxable component of a * superannuation income stream benefit that you receive because of the death of a person of whom you are a * death benefits dependant is assessable income if: (a) you are under 60 when you receive the benefit; and (b) the deceased died aged under 60. Note: For taxable component , see Subdivision 307 ‑ C. (2) You are entitled to a * tax offset equal to 15% of the * taxable component of the benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-80 — Treatment of element untaxed in the fund of superannuation income stream death benefit to dependant

If a * superannuation income stream benefit that you receive because of the death of a person of whom you are a * death benefits dependant includes an * element untaxed in the fund: (a) the * tax free component (if any) of the benefit is treated in the same way as the tax free component of a superannuation income stream benefit under section 302 ‑ 65 or 302 ‑ 70; and (b) the * element taxed in the fund (if any) of the benefit is treated in the same way as the * taxable component of a superannuation income stream benefit under section 302 ‑ 65 or 302 ‑ 75; and (c) the element untaxed in the fund is treated in accordance with section 302 ‑ 85 or 302 ‑ 90. Note: If your superannuation income stream benefit is defined benefit income, see Subdivision 303 ‑ A.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 302-85 — Deceased died aged 60 or above or dependant aged 60 years or above—superannuation income stream: element untaxed in fund attracts 10% offset

(1) The * element untaxed in the fund of a * superannuation income stream benefit that you receive because of the death of a person of whom you are a * death benefits dependant is assessable income in either or both of the following cases: (a) you are 60 years or over when you receive the benefit; (b) the deceased died aged 60 or above. (2) You are entitled to a * tax offset equal to 10% of the * element untaxed in the fund of the benefit. Note: If your superannuation income stream benefit is defined benefit income, see Subdivision 303 ‑ A.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 302-90 — Deceased died aged under 60 and dependant aged under 60—superannuation income stream: element untaxed in fund is assessable income

The * element untaxed in the fund of a * superannuation income stream benefit that you receive because of the death of a person of whom you are a * death benefits dependant is assessable income if: (a) you are aged under 60 when you receive the benefit; and (b) the deceased died aged under 60.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-140 — Superannuation lump sum—tax free status of tax free component

The * tax free component of a * superannuation lump sum that you receive because of the death of a person of whom you are not a * death benefits dependant is not assessable income and is not * exempt income. Note: For tax free component , see Subdivision 307 ‑ C.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-145 — Superannuation lump sum—element taxed in the fund taxed at 15%, element untaxed in the fund taxed at 30%

(1) If you receive a * superannuation lump sum because of the death of a person of whom you are not a * death benefits dependant, the * taxable component of the lump sum is assessable income. Note: For taxable component , see Subdivision 307 ‑ C. (2) You are entitled to a * tax offset that ensures that the rate of income tax on the * element taxed in the fund of the lump sum does not exceed 15%. (3) You are entitled to a * tax offset that ensures that the rate of income tax on the * element untaxed in the fund of the lump sum does not exceed 30%.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 302-195 — Meaning of death benefits dependant

(1) A death benefits dependant , of a person who has died, is: (a) the deceased person’s * spouse or former spouse; or (b) the deceased person’s * child, aged less than 18; or (c) any other person with whom the deceased person had an interdependency relationship under section 302 ‑ 200 just before he or she died; or (d) any other person who was a dependant of the deceased person just before he or she died. (2) For the purposes of this Division, treat an individual who receives a * superannuation lump sum because of the death of another person as a death benefits dependant of the deceased person in relation to the lump sum if the deceased person * died in the line of duty (see subsection (3)) as: (a) a member of the Defence Force; or (b) a member of the Australian Federal Police or the police force of a State or Territory; or (c) a protective service officer (within the meaning of the Australian Federal Police Act 1979 ). (3) For the purposes of subsection (2), a person died in the line of duty if the person died in the circumstances specified in the regulations.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 79 of 2007, effective Schedule 1 (items 28, 29, 39–42, 43(1), (6)), Schedules 3, 4, Schedule 6 (items 3–8), Schedule 9 (items 14–26, 30, 34) and Schedule 10 (items 10–13, 32): Royal Assent Schedule 8 (items 2, 12–25, 26(1)–(3)): 1 July 2007

s 302-200 — What is an interdependency relationship ?

(1) Two persons (whether or not related by family) have an interdependency relationship under this section if: (a) they have a close personal relationship; and (b) they live together; and (c) one or each of them provides the other with financial support; and (d) one or each of them provides the other with domestic support and personal care. (2) In addition, 2 persons (whether or not related by family) also have an interdependency relationship under this section if: (a) they have a close personal relationship; and (b) they do not satisfy one or more of the requirements of an interdependency relationship mentioned in paragraphs (1)(b), (c) and (d); and (c) the reason they do not satisfy those requirements is that either or both of them suffer from a physical, intellectual or psychiatric disability. (3) The regulations may specify: (a) matters that are, or are not, to be taken into account in determining under subsection (1) or (2) whether 2 persons have an interdependency relationship under this section; and (b) circumstances in which 2 persons have, or do not have, an interdependency relationship under this section.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 303-1 — What this Division is about

Under Subdivision 303 ‑ A, the tax treatment of superannuation income stream benefits that are defined benefit income can be less favourable to you if that income exceeds your defined benefit income cap. Subdivision 303 ‑ B sets out special circumstances in which superannuation benefits are neither assessable income nor exempt income.

Amendment history: Inserted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 303-2 — Effect of exceeding defined benefit income cap on assessable income

(1) Despite sections 301 ‑ 10 and 302 ‑ 65, if: (a) during a * financial year, you receive one or more * superannuation income stream benefits: (i) that are * defined benefit income; and (ii) to which either section 301 ‑ 10 or 302 ‑ 65 applies; and (b) the sum of all of those benefits (other than any * elements untaxed in the fund of those benefits) exceeds your * defined benefit income cap for the financial year; 50% of that excess is assessable income. (2) Defined benefit income is a * superannuation income stream benefit that is paid from a * capped defined benefit income stream.

Amendment history: Inserted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 303-3 — Effect of exceeding defined benefit income cap on tax offsets

Despite sections 301 ‑ 100 and 302 ‑ 85, if: (a) during a * financial year, you receive one or more * superannuation income stream benefits: (i) that are * defined benefit income; and (ii) in relation to which you are entitled, or apart from this section you would be entitled, to one or more * tax offsets under section 301 ‑ 100 or 302 ‑ 85; and (b) the sum of all of the superannuation income stream benefits you receive during the financial year: (i) that are defined benefit income; and (ii) to which section 301 ‑ 10, 301 ‑ 100, 302 ‑ 65 or 302 ‑ 85 applies; exceeds your * defined benefit income cap for the financial year; the sum of those tax offsets is reduced (but not below zero) by an amount equal to 10% of that excess.

Amendment history: Inserted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 303-4 — Meaning of defined benefit income cap

(1) Your defined benefit income cap for a * financial year is the following amount (rounded up to the nearest dollar): (2) Despite subsection (1) of this section, if a particular day in a * financial year is the first day in relation to which section 301 ‑ 10, 301 ‑ 100, 302 ‑ 65 or 302 ‑ 85: (a) applies to you in respect of an amount of * defined benefit income; or (b) would apart from this Subdivision apply to you in respect of an amount of defined benefit income; your defined benefit income cap for the financial year is the following amount (rounded up to the nearest dollar): (3) Despite subsections (1) and (2) of this section, if: (a) in a case where subsection (1) applies—during the * financial year, you receive any amounts of * defined benefit income to which none of sections 301 ‑ 10, 301 ‑ 100, 302 ‑ 65 and 302 ‑ 85 apply; or (b) in a case where subsection (2) applies—during the financial year, you receive after the day mentioned in that subsection any amounts of defined benefit income to which none of sections 301 ‑ 10, 301 ‑ 100, 302 ‑ 65 and 302 ‑ 85 apply; your defined benefit income cap for the financial year under subsection (1) or (2) (as the case requires) is reduced by the sum of those amounts.

Amendment history: Inserted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 55 of 2017, effective Sch 1 (items 1–15, 32): 1 July 2017 (s 2(1) items 2, 7)

s 303-5 — Commutation of income stream if you are under 25 etc.

(1) A * superannuation lump sum that you receive from a * complying superannuation plan is not assessable income and is not * exempt income if: (a) the superannuation lump sum arises from the commutation of a * superannuation income stream; and (b) any of these conditions are satisfied: (i) you are under 25 when you receive the superannuation lump sum; (ii) the commutation takes place because you turn 25; (iii) you are permanently disabled when you receive the superannuation lump sum; and (c) you had received one or more * superannuation income stream benefits from the superannuation income stream before the commutation because of the death of a person of whom you are a * death benefits dependant. (2) Subsection (1) applies despite Divisions 301 and 302.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 303-10 — Superannuation lump sum member benefit paid to member having a terminal medical condition

(1) This section applies to a * superannuation member benefit that: (a) is a * superannuation lump sum; and (b) is: (i) paid from a * complying superannuation plan; or (ii) a * superannuation guarantee payment, a * small superannuation account payment, an * unclaimed money payment, a * superannuation co ‑ contribution benefit payment or a * superannuation annuity payment. (2) The lump sum is not assessable income and is not * exempt income if a * terminal medical condition exists in relation to you when you receive the lump sum or within 90 days after you receive it. Note: For a lump sum you receive in the 2007 ‑ 08 financial year, the period of 90 days may be extended until 30 June 2008: see section 303 ‑ 10 of the Income Tax (Transitional Provisions) Act 1997 .

Amendment history: Inserted by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012

s 303-15 — Payments from release authorities—general

A * superannuation benefit that you receive (or are taken to receive) is not assessable income and is not * exempt income if it is paid in response to a release authority issued under section 131 ‑ 15 or 139 ‑ 115 in Schedule 1 to the Taxation Administration Act 1953 in relation to you. Note: In some cases, a related amount may still be included in your assessable income (see Subdivision 292 ‑ B and sections 304 ‑ 20 and 313 ‑ 20).

Amendment history: Inserted by No 75 of 2012, effective Schedule 3 and Schedule 4 (items 1–10, 20): Royal Assent | Repealed and substituted by No 118 of 2013, effective Sch 1 (items 1, 4–11, 16–26, 38–79, 88–96, 110): 29 June 2013 (s 2(1) items 2–5, 11) Sch 1 (item 97): 1 July 2013 (s 2(1) item 6) | Repealed and substituted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 132 of 2017, effective Sch 1 (items 6–12, 21, 27–31): 1 July 2018 (s 2(1) item 2) Sch 2 (items 1–5, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 47 of 2026, effective sch 1 (items 6-11): 21 May 2026 (s 2(1) item 1)

s 303-20 — Payments from release authorities—paying debt account discharge liability or Division 296 debt account discharge liability

A * superannuation benefit that you receive (or are taken to receive), paid in relation to a release authority issued to you in respect of a * release entitlement you have, is not assessable income and is not * exempt income. Note: However, payments that exceed the release entitlement are assessable: see section 304 ‑ 20.

Amendment history: Inserted by No 82 of 2013, effective Sch 1 (item 1) and Sch 3 (items 1, 6–11, 39): 28 June 2013 (s 2) | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 304-1 — What this Division is about

This Division overrides the tax treatment in Divisions 301 and 302 if payments from complying superannuation plans etc. are in breach of payment and other rules. Table of sections Operative provisions 304 ‑ 5 Application 304 ‑ 10 Superannuation benefits in breach of legislative requirements etc. 304 ‑ 20 Excess payments from release authorities—paying debt account discharge liability or Division 296 debt account discharge liability

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 304-5 — Application

This Division applies despite Divisions 301, 302 and 303.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 304-10 — Superannuation benefits in breach of legislative requirements etc.

(1) Include in your assessable income the amount of a * superannuation benefit if: (a) any of the following applies: (i) you received the benefit from a * complying superannuation fund or from a * superannuation fund that was previously a complying superannuation fund; (ii) the benefit is attributable to the assets of a complying superannuation fund or from a superannuation fund that was previously a complying superannuation fund; and (b) any of the following applies: (i) the fund was not (when you received the benefit) maintained as required by section 62 of the Superannuation Industry (Supervision) Act 1993 ; (ii) you received the benefit otherwise than in accordance with payment standards prescribed under subsection 31(1) of the Superannuation Industry (Supervision) Act 1993 . (2) Include in your assessable income the amount of a * superannuation benefit if: (a) any of the following applies: (i) you received the benefit from a * complying approved deposit fund or from an * approved deposit fund that was previously a complying approved deposit fund; (ii) the benefit is attributable to the assets of a complying approved deposit fund or from an approved deposit fund that was previously a complying approved deposit fund; and (b) you received the benefit otherwise than in accordance with payment standards prescribed under subsection 32(1) of the Superannuation Industry (Supervision) Act 1993 . (3) Include in your assessable income the amount of a * superannuation benefit you receive from an * RSA in breach of the Retirement Savings Accounts Act 1997 , regulations under that Act or payment standards prescribed under subsection 38(2) of that Act. (4) However, you do not have to include the amount in your assessable income to the extent that the Commissioner is satisfied that it is unreasonable that it be included having regard to: (a) for subsection (1) or (2)—the nature of the fund; and (b) any other matters that the Commissioner considers relevant. (5) For the purposes of this section, treat your receipt of a benefit (other than a * superannuation benefit) out of, or attributable to, the assets of a * superannuation plan as your receipt of a superannuation benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 304-20 — Excess payments from release authorities—paying debt account discharge liability or Division 296 debt account discharge liability

(1) Despite section 303 ‑ 20, a * superannuation benefit that you receive (or are taken to receive), paid in relation to a release authority issued to you in respect of a * release entitlement you have, is assessable income to the extent (if any) that it exceeds the amount mentioned in subsection (2). Note: Section 303 ‑ 20 makes superannuation benefits received under a release authority non ‑ assessable non ‑ exempt income. (2) The amount is the amount of the * release entitlement, reduced (but not below zero) by the amount of any * superannuation benefit that was not assessable income and not * exempt income under a previous operation of section 303 ‑ 20 of this Act in relation to that release entitlement.

Amendment history: Inserted by No 82 of 2013, effective Sch 1 (item 1) and Sch 3 (items 1, 6–11, 39): 28 June 2013 (s 2) | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 305-1 — What this Division is about

This Division sets out the tax treatment of superannuation benefits received by members of non ‑ complying plans (including foreign superannuation funds).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 305-5 — Tax treatment of superannuation benefits from certain Australian non ‑ complying superannuation funds

A * superannuation benefit that you receive from a * non ‑ complying superannuation fund that is an * Australian superannuation fund (for the income year in which the benefit is paid) is * exempt income if: (a) the fund: (i) has never been a * complying superannuation fund; or (ii) last stopped being a complying superannuation fund for the income year in which 1 July 1995 occurred or a later income year; and (b) the fund: (i) has never been a * foreign superannuation fund; or (ii) last stopped being a foreign superannuation fund for the income year in which 1 July 1995 occurred or a later income year.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 305-55 — Restriction to lump sums received from certain foreign superannuation funds

(1) This Subdivision applies if: (a) you receive a * superannuation lump sum from a * foreign superannuation fund; and (b) the fund is an entity mentioned in item 4 of the table in subsection 295 ‑ 490(1) (which deals with deductions for superannuation entities). (2) This Subdivision also applies if you receive a payment, other than a pension payment, from a scheme for the payment of benefits in the nature of superannuation upon retirement or death that: (a) is not, and never has been, an * Australian superannuation fund or a * foreign superannuation fund; and (b) was not established in Australia; and (c) is not centrally managed or controlled in Australia. (3) This Subdivision applies to a payment mentioned in subsection (2) from a scheme mentioned in that subsection in the same way as it applies to a * superannuation lump sum from a * foreign superannuation fund.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 305-60 — Lump sums tax free—foreign resident period

A * superannuation lump sum you receive from a * foreign superannuation fund is not assessable income and is not * exempt income if: (a) you receive it within 6 months after you become an Australian resident; and (b) it relates only to a period: (i) when you were not an Australian resident; or (ii) starting after you became an Australian resident and ending before you receive the payment; and (c) it does not exceed the amount in the fund that was vested in you when you received the payment. Note: If you received the lump sum after that period of 6 months, or the lump sum exceeds the vested amount, the payment will fall within section 305 ‑ 70.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 305-65 — Lump sums tax free—Australian resident period

(1) A * superannuation lump sum you receive is not assessable income and is not * exempt income if: (a) you receive it in consequence of: (i) the termination of your employment as an employee, or as the holder of an office, in a foreign country; or (ii) the termination of your engagement on qualifying service on an approved project (within the meaning of section 23AF of the Income Tax Assessment Act 1936 ), in relation to a foreign country; and (b) it relates only to the period of that employment, holding of office, or engagement; and (c) you were an Australian resident during the period of the employment, holding of office or engagement; and (d) you receive the lump sum within 6 months after the termination; and (e) the lump sum is not exempt from taxation under the law of the foreign country; and (f) for a period of employment or holding an office—your foreign earnings from the employment or office are exempt from income tax under section 23AG of the Income Tax Assessment Act 1936 ; and (g) for a period of engagement on qualifying service on an approved project—your eligible foreign remuneration from the service is exempt from income tax under section 23AF of that Act. Note: If you received the lump sum after that period of 6 months, the lump sum will fall within section 305 ‑ 70. (2) For the purposes of subsection (1), treat the termination of employment, holding of office, or engagement as including: (a) retirement from the employment, office or engagement; and (b) cessation of the employment, office or engagement because of death.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 305-70 — Lump sums received more than 6 months after Australian residency or termination of foreign employment etc.

Superannuation lump sums to which section applies (1) This section applies to a * superannuation lump sum you receive from a * foreign superannuation fund if: (a) you are an Australian resident when you receive the lump sum; and (b) sections 305 ‑ 60 and 305 ‑ 65 do not apply to the lump sum. Assessable part (2) Include in your assessable income so much of the lump sum (excluding any amount mentioned in subsection (4)) as equals: (a) your * applicable fund earnings (worked out under section 305 ‑ 75); or (b) if you have made a choice under section 305 ‑ 80—your applicable fund earnings, less the amount covered by the choice. Note: Under section 305 ‑ 80, if your lump sum is paid into a complying superannuation plan, you can choose to have some or all of the applicable fund earnings excluded from your assessable income. The amount you choose is included in the assessable income of the plan: see section 295 ‑ 200. Non ‑ assessable, non ‑ exempt part (3) The remainder of the lump sum is not assessable income and is not * exempt income. Amount paid into another foreign superannuation fund (4) Any part of the lump sum that is paid into another * foreign superannuation fund is not assessable income and is not * exempt income. Note: However, your applicable fund earnings under section 305 ‑ 75 in relation to a later lump sum payment out of the other foreign superannuation fund may include an amount ( previously exempt fund earnings ) attributable to the lump sum.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 305-75 — Lump sums— applicable fund earnings

(1) This section applies if you need to work out an amount (your applicable fund earnings ) in relation to a * superannuation lump sum to which section 305 ‑ 70 applies that you receive from a * foreign superannuation fund. If you were an Australian resident at all times (2) If you were an Australian resident at all times during the period to which the lump sum relates, the amount of your applicable fund earnings is the amount (not less than zero) worked out as follows: (a) work out the total of the following amounts: (i) the part of the lump sum that is attributable to contributions made by or in respect of you on or after the day when you became a member of the fund (the start day ); (ii) the part of the lump sum (if any) that is attributable to amounts transferred into the fund from any other * foreign superannuation fund during the period; (b) subtract that total amount from the amount in the fund that was vested in you when the lump sum was paid (before any deduction for * foreign income tax); (c) add the total of all your previously exempt fund earnings (if any) covered by subsections (5) and (6). If you were not an Australian resident at all times (3) If you become an Australian resident after the start of the period to which the lump sum relates (but before you received it) the amount of your applicable fund earnings is the amount (not less than zero) worked out as follows: (a) work out the total of the following amounts: (i) the amount in the fund that was vested in you just before the day (the start day ) you first became an Australian resident during the period; (ii) the part of the payment that is attributable to contributions to the fund made by or in respect of you during the remainder of the period; (iii) the part of the payment (if any) that is attributable to amounts transferred into the fund from any other * foreign superannuation fund during the remainder of the period; (b) subtract that total amount from the amount in the fund that was vested in you when the lump sum was paid (before any deduction for * foreign income tax); (c) multiply the resulting amount by the proportion of the total days during the period when you were an Australian resident; (d) add the total of all previously exempt fund earnings (if any) covered by subsections (5) and (6). Previous lump sums from the fund (4) If the lump sum is not the first lump sum from the fund you have received to which this section applies, for subsections (2) and (3) the start day is the day after you received the most recent such lump sum. Previously exempt fund earnings (5) You have an amount of previously exempt fund earnings in respect of the lump sum if: (a) part or all of the amount in the fund that was vested in you when the lump sum was paid (before any deduction for * foreign income tax) is attributable to the amount; and (b) the amount is attributable to a payment received from a * foreign superannuation fund; and (c) the amount would have been included in your assessable income under subsection 305 ‑ 70(2) by the application of this section, but for the payment having been received by another foreign superannuation fund. (6) The amount of your previously exempt fund earnings is the amount mentioned in paragraph (5)(c) (disregarding the addition of previously exempt fund earnings under subsection (2) or (3) of this section).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 143 of 2007, effective Schedule 1 (items 1, 4, 128–194, 222, 223, 225, 226), Schedule 2, Schedule 5 (items 1–16, 48(1)–(3)), Schedule 6 and Schedule 7 (items 18–68): Royal Assent Schedule 5 (items 31–46): 15 Mar 2007 (s 2(1) item 6)

s 305-80 — Lump sums paid into complying superannuation plans—choice

(1) This section applies if: (a) section 305 ‑ 70 applies to a * superannuation lump sum that is paid from a * foreign superannuation fund; and (b) you are taken to receive the lump sum under section 307 ‑ 15; and (c) all of the lump sum is paid into a * complying superannuation fund; and (d) immediately after the lump sum is paid into the complying superannuation fund, you no longer have a * superannuation interest in the foreign superannuation fund. (2) You may choose for all or part of your * applicable fund earnings worked out under section 305 ‑ 75 (but not exceeding the amount of the lump sum) to be included in the assessable income of the * complying superannuation plan. Note: Section 295 ‑ 200 provides for the amount specified in the choice to be included in the assessable income of the complying superannuation plan. (3) Your choice: (a) must be in writing; and (b) must comply with the requirements (if any) specified in the regulations.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 306-1 — What this Division is about

This Division sets out the tax treatment of payments made from one superannuation plan to another superannuation plan, and of similar payments. Table of sections Operative provisions 306 ‑ 5 Effect of a roll ‑ over superannuation benefit 306 ‑ 10 Roll ‑ over superannuation benefit 306 ‑ 12 Involuntary roll ‑ over superannuation benefit 306 ‑ 15 Tax on excess untaxed roll ‑ over amounts 306 ‑ 20 Effect of payment to government of unclaimed superannuation money 306 ‑ 25 Payments connected with financial claims scheme to RSAs

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 306-5 — Effect of a roll ‑ over superannuation benefit

A * roll ‑ over superannuation benefit that you are taken to receive under section 307 ‑ 15 is not assessable income and is not * exempt income. Note: Roll ‑ over superannuation benefits are paid into a complying superannuation plan or are used to purchase a superannuation annuity on your behalf. However, you are taken to receive the benefit under subsection 307 ‑ 15(1).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 306-10 — Roll ‑ over superannuation benefit

A * superannuation benefit is a roll ‑ over superannuation benefit if: (a) the benefit is a * superannuation lump sum and a * superannuation benefit; and (b) the benefit is not a superannuation benefit of a kind specified in the regulations; and (c) the benefit satisfies any of the following conditions: (i) it is paid from a * complying superannuation plan; (ii) it is an * unclaimed money payment; (iii) it arises from the commutation of a * superannuation annuity; (iv) it is a payment under subsection 131 ‑ 80(1) or (3) in Schedule 1 to the Taxation Administration Act 1953 ; and (d) the benefit satisfies any of the following conditions: (i) it is paid to a complying superannuation plan; (ii) it is paid to an entity to purchase a superannuation annuity from the entity. Note 1: A superannuation benefit may be paid from one superannuation plan of a superannuation provider to another superannuation plan of the same provider. Note 2: For the treatment of amounts transferred within a superannuation plan, see subsection 307 ‑ 5(8). Note 3: Subparagraph (c)(iv) relates to payments when an entitlement to a credit ceases for a release authority relating to an FHSS determination.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11)

s 306-12 — Involuntary roll ‑ over superannuation benefit

A * roll ‑ over superannuation benefit is an involuntary roll ‑ over superannuation benefit if it is: (a) a payment transferring a * superannuation interest of: (i) a member of a * superannuation fund; or (ii) a depositor with an * approved deposit fund; or (iii) a holder of an * RSA; to a * successor fund (other than a * self managed superannuation fund) without the consent of the member, depositor or holder; or (b) a payment transferring an * accrued default amount of a member (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) of a * complying superannuation fund to another complying superannuation fund: (i) as a result of an election under paragraph 29SAA(1)(b) of that Act; or (ii) under section 388 of that Act; if: (iii) that member becomes a member (within the meaning of that Act) of the other fund immediately after the transfer; and (iv) the transfer happens during the period beginning on 1 July 2015 and ending on 1 July 2017; or (c) a payment of consideration for the issue to a person of a beneficial interest in an eligible rollover fund (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) in accordance with an application on behalf of that person under section 243 of that Act.

Amendment history: Inserted by No 21 of 2015, effective s 4 and Sch 6 (items 1, 2, 16–25, 73): 19 Mar 2015 (s 2(1) items 1, 7–11, 13) Sch 1 (items 1–17, 49), Sch 3 and Sch 7 (items 13–21): 20 Mar 2015 (s 2(1) items 2, 4, 15) Sch 4 (items 1–5, 9–17): 1 July 2015 (s 2(1) item 5) Sch 6 (items 51–59, 74–79): never commences (s 2(1) items 12, 14)

s 306-15 — Tax on excess untaxed roll ‑ over amounts

(1) This section applies to a * superannuation benefit if: (a) it is a * roll ‑ over superannuation benefit that is paid into a * superannuation plan; and (b) you are taken to receive the benefit under section 307 ‑ 15; and (c) the benefit consists of, or includes, an amount that is an * element untaxed in the fund; and (d) the amount mentioned in paragraph (c) exceeds your * untaxed plan cap amount (see section 307 ‑ 350), for the superannuation plan from which the benefit is paid, just before you are taken to receive the benefit. Note: To work out your untaxed plan cap amount in relation to an unclaimed money payment from the Commissioner, see subsection 307 ‑ 350(2B). (1A) However, this section does not apply to a * roll ‑ over superannuation benefit that is transferred from one * superannuation interest in a * superannuation plan to another superannuation interest in the same plan. Note 1: A superannuation benefit may be paid from one superannuation plan of a superannuation provider to another superannuation plan of the same provider. Such a benefit may be a roll ‑ over superannuation benefit: see section 306 ‑ 10. Note 2: For the treatment of amounts transferred within the same superannuation plan, see subsection 307 ‑ 5(8). (2) The excess untaxed roll ‑ over amount is the amount of the excess mentioned in paragraph (1)(d). (3) You are liable to pay income tax on the * excess untaxed roll ‑ over amount at the rate declared by the Parliament in respect of such amounts. Note 1: The tax is imposed in the Superannuation (Excess Untaxed Roll ‑ over Amounts Tax) Act 2007 , and the amount of tax is set out in that Act. Note 2: See the Taxation Administration Act 1953 for provisions dealing with the payment of the tax.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3) | Amended by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009

s 306-20 — Effect of payment to government of unclaimed superannuation money

An * unclaimed money payment that you are taken to receive under section 307 ‑ 15 because it is paid in accordance with the Superannuation (Unclaimed Money and Lost Members) Act 1999 , or because it is paid as mentioned in subsection 18(4) of that Act, to the Commissioner or a State or Territory authority (within the meaning of that Act) is not assessable income and is not * exempt income.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 117 of 2010, effective Sch 1 (items 15–20, 21(2)) and Sch 4 (items 1–17, 19–24, 26–29, 31, 32): 17 Nov 2010 (s 2(1) items 2, 6) Sch 2 (items 2, 3): 1 Dec 2010 (s 2(1) item 3) Sch 2 (item 6): 1 Jan 2017 (s 2(1) item 4)

s 306-25 — Payments connected with financial claims scheme to RSAs

(1) This section applies if: (a) a person is the holder of an * RSA (the old RSA ) of which an * ADI is the * RSA provider; and (b) an entitlement of the person arises under Division 2AA (Financial claims scheme for account ‑ holders with insolvent ADIs) of Part II of the Banking Act 1959 in connection with the old RSA; and (c) either: (i) the entitlement, so far as it relates to the old RSA, is met wholly or partly by the making of a payment to another RSA (the new RSA ) that the person is the holder of (whether or not the new RSA was established under section 16AH of the Banking Act 1959 ); or (ii) a liquidator of the ADI pays a distribution from the liquidation of the ADI, so far as the distribution is attributable to the old RSA, to another RSA (also the new RSA ) that the person is the holder of (whether or not the new RSA was established under section 16AR of the Banking Act 1959 ). (2) This Part (except this section), and the other provisions of this Act (except this section) so far as they relate to this Part, apply in relation to the payment to the new RSA as if: (a) the payment were made from the old RSA to the new RSA; and (b) the entity that made the payment (rather than the * ADI) were the * RSA provider of the old RSA. Note: The effects of this include: (a) the payment is a superannuation member benefit of the person (because of sections 307 ‑ 5 and 307 ‑ 15); and (b) the payment is a superannuation lump sum under Subdivision 307 ‑ B (unless regulations prevent this); and (c) the payment is a roll ‑ over superannuation benefit under section 306 ‑ 10 (unless regulations prevent this); and (d) reporting obligations (such as those in section 390 ‑ 10 in Schedule 1 to the Taxation Administration Act 1953 ) apply to the entity that made the payment as if it were the RSA provider of the old RSA. (3) However, for the purposes of section 307 ‑ 125, determine the * value of the * superannuation interest, and the amount of each of the * tax free component and the * taxable component of the interest: (a) when the entitlement arose; or (b) if a * superannuation income stream benefit had been paid from the old RSA before that time—at the time the relevant * superannuation income stream commenced. (4) Subsection (3) has effect despite: (a) subsection 307 ‑ 125(3) (as it applies because of subsection (2) of this section); and (b) paragraph 307 ‑ 125(3)(a) of the Income Tax (Transitional Provisions) Act 1997 . (5) This section has effect despite: (a) Division 253; and (b) Division 21 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Inserted by No 42 of 2009, effective Schedule 1 (items 17–26), Schedule 2 (items 2–16, 19–39, 41–48), Schedule 4 (items 2–12), Schedule 5 (items 1–12, 15) and Schedule 8 (items 1, 2, 5): Royal Assent Sch 2 (item 1): 21 June 2007 (s 2(1) item 3) Schedule 3: 1 July 2009 Schedule 8 (items 3, 4): 1 July 2011

s 307-1 — What this Division is about

This Division defines concepts used in Divisions 301 to 306, such as superannuation benefit , and the tax free component and taxable component of such benefits. To work out those components, it is often necessary to work out the corresponding components of the superannuation interest from which the benefit is paid (see Subdivision 307 ‑ D). This Division also defines the element taxed in the fund and the element untaxed in the fund of superannuation benefits, which are relevant to superannuation benefits paid from untaxed funds etc. (see Subdivision 307 ‑ D). Subdivision 307 ‑ F defines the concessional limits used in Division 301 known as the low rate cap amount and untaxed plan cap amount.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-5 — What is a superannuation benefit ?

(1) A superannuation benefit is a payment described in the table or in subsection (1A). Types of superannuation benefits Item Column 1 Superannuation benefit type Column 2 Superannuation member benefit Column 3 Superannuation death benefit 1 superannuation fund payment A payment to you from a * superannuation fund because you are a fund member. A payment to you from a superannuation fund, after another person’s death, because the other person was a fund member. 2 RSA payment A payment to you from an * RSA because you are the holder of the RSA. A payment to you from an RSA, after another person’s death, because the other person was the holder of the RSA. 3 approved deposit fund payment A payment to you from an * approved deposit fund because you are a depositor with the fund. A payment to you from an approved deposit fund after another person’s death, because the other person was a depositor with the fund. 4 small superannuation account payment A payment to you under section 63, 64, 65, 65A, 66, 67 or 67A, or subsection 76(6), of the Small Superannuation Accounts Act 1995 . (These provisions authorise payment of money held under the Act.) A payment to you under section 68 or subsection 76(7) of the Small Superannuation Accounts Act 1995 . (These provisions authorise payment of money held under the Act to the legal personal representative of the deceased.) 5 unclaimed money payment A payment to you: (a) under subsection 17(1), (2) or (2AB), 20F(1) or 20H(2), (2AA) or (2A), section 20QD or subsection 20QF(2) or (5), section 21C or subsection 21E(2) or (5), section 22 or subsection 22B(2) or (5), section 24E or subsection 24G(2) or (3A) or 24NA(2), (3) or (4) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ; or (b) as mentioned in subsection 18(4) or (5) of that Act; otherwise than because of another person’s death . A payment to you: (a) under subsection 17(1), (2), (2AB) or (2AC), 20H(2), (2AA), (2A) or (3), 20QF(2), (5) or (6), 21E(2), (5) or (6), 22B(2), (5) or (6) or 24G(2), (3A) or (3B) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ; or (b) as mentioned in subsection 18(4) or (5) of that Act; because of another person’s death. 6 superannuation co ‑ contribution benefit payment A payment to you under paragraph 15(1)(c) of the Superannuation (Government Co ‑ contribution for Low Income Earners) Act 2003 . A payment to you under paragraph 15(1)(d) of the Superannuation (Government Co ‑ contribution for Low Income Earners) Act 2003 . 7 superannuation guarantee payment A payment to you under section 65A, 66 or 66A of the Superannuation Guarantee (Administration) Act 1992 . (This provides for money collected under the Act to be paid to a person who retires because of incapacity or invalidity, or who has a terminal medical condition.) A payment to you under section 67 of the Superannuation Guarantee (Administration) Act 1992 . (This provides for money collected under the Act to be paid to the legal personal representative of the deceased.) 8 superannuation annuity payment A payment to you: (a) from a * superannuation annuity; or (b) arising from the commutation of a superannuation annuity; because you are the annuitant. A payment to you: (a) from a superannuation annuity; or (b) arising from the commutation of a superannuation annuity; because of the death of the annuitant. 9 repayment when an entitlement to a credit ceases for a release authority relating to an FHSS determination A payment relating to you under subsection 131 ‑ 80(1) or (3) in Schedule 1 to the Taxation Administration Act 1953 . (1A) A payment (a PPL superannuation contribution payment ) to you under paragraph 115F(1)(c) or paragraph 115K(4)(c) of the Paid Parental Leave Act 2010 . (1B) For the purposes of subsection (1A), disregard any amount recovered in relation to the payment under item 3 of the table in subsection 115P(3) of the Paid Parental Leave Act 2010 . (2) A superannuation member benefit is a payment described in column 2 of the table. (4) A superannuation death benefit is a payment described in column 3 of the table or in subsection (1A). (5) Subsection (6) applies if a * contributions ‑ splitting superannuation benefit or a * family law superannuation payment is paid to you because another person is a member of a * superannuation fund, holder of an * RSA or depositor with an * approved deposit fund, or the annuitant under a * superannuation annuity. (6) For the purposes of this section (and despite section 307 ‑ 15): (a) treat yourself as a member of the fund, holder of the * RSA, depositor with the fund or annuitant under the * superannuation annuity; and (b) do not treat the other person as a member of the fund, holder of the RSA, depositor with the fund or annuitant under the superannuation annuity. Note: This means that the benefit is a superannuation benefit for you but not for the other person. (7) A family law superannuation payment is a payment that: (a) is a payment of any of the following kinds: (i) a payment in accordance with Part VIIIB or VIIIC of the Family Law Act 1975 ; (ii) a payment in accordance with prescribed regulations made under the Family Law Act 1975 ; (iii) a payment in accordance with Part 7A of the Superannuation Industry (Supervision) Regulations 1994 ; (iv) a payment in accordance with Part 4A of the Retirement Savings Accounts Regulations 1997 ; (v) a payment specified in the regulations; and (b) satisfies the requirements (if any) specified in the regulations. Treatment of amounts transferred within a superannuation plan (8) If an amount is transferred from one * superannuation interest in a * superannuation plan to another superannuation interest in the same plan, treat the transfer as a payment in determining whether the transfer of the amount is a superannuation benefit or a roll ‑ over superannuation benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 143 of 2007, effective Schedule 1 (items 1, 4, 128–194, 222, 223, 225, 226), Schedule 2, Schedule 5 (items 1–16, 48(1)–(3)), Schedule 6 and Schedule 7 (items 18–68): Royal Assent Schedule 5 (items 31–46): 15 Mar 2007 (s 2(1) item 6) | Amended by No 151 of 2008, effective Sch 1 (items 27–37): 18 Dec 2008 (s 2(1) item 2) | Amended by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009 | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 117 of 2010, effective Sch 1 (items 15–20, 21(2)) and Sch 4 (items 1–17, 19–24, 26–29, 31, 32): 17 Nov 2010 (s 2(1) items 2, 6) Sch 2 (items 2, 3): 1 Dec 2010 (s 2(1) item 3) Sch 2 (item 6): 1 Jan 2017 (s 2(1) item 4) | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 23 of 2018, effective Sch 1 (items 12–19, 21–23, 60–62), Sch 2 (items 1, 2, 6) and Sch 5 (items 7–11, 26–28): 1 Apr 2018 (s 2(1) items 3, 5, 8, 10, 12) Sch 1 (items 75–79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 16 of 2019, effective Sch 3 (items 1–15, 38): 13 Mar 2019 (s 2(1) item 2) | Amended by No 18 of 2020, effective Sch 1 (items 24–26): 6 Sept 2020 (s 2(1) item 1) | Amended by No 112 of 2020, effective Sch 3 (items 39–47): 28 Sept 2022 (s 2(1) item 1) | Amended by No 141 of 2020, effective Sch 1 (item 1) and Sch 4 (items 82–101): 1 Jan 2021 (s 2(1) items 2, 7) Sch 4 (item 146): 18 Dec 2020 (s 2(1) item 16) | Amended by No 24 of 2021, effective Sch 1 (items 1–14): 23 Mar 2021 (s 2(1) item 2) Sch 2 (items 1–14): 29 Mar 2021 (s 2(1) item 3) | Amended by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11) | Amended by No 90 of 2024, effective sch 2 (items 2 ‑ 6): 2 Oct 2024 (s 2(1) item 1)

s 307-10 — Payments that are not superannuation benefits

A payment of any of the following kinds is not a superannuation benefit : (a) an amount payable to a person under an income stream because of the person’s temporary inability to engage in * gainful employment; (aa) a benefit to which subsection 26AF(1) or 26AFA(1) of the Income Tax Assessment Act 1936 applies; (ab) an amount required by the Bankruptcy Act 1966 to be paid to a trustee; (b) an amount: (i) received by you, or to which you are entitled, as the result of the commutation of a pension payable from a * constitutionally protected fund; and (ii) wholly applied in paying any superannuation contributions surcharge (as defined in section 38 of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 ); (c) an amount: (i) received by you, or to which you are entitled, as the result of the commutation of a pension payable by a superannuation provider (within the meaning of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 ); and (ii) wholly applied in paying any superannuation contributions surcharge (as defined in section 43 of that Act); (d) a payment of a pension or an * annuity from a * foreign superannuation fund; (e) a payment that: (i) is paid by the * superannuation provider of a * superannuation fund at your direction or request; and (ii) relates directly to personal advice (within the meaning of the Corporations Act 2001 ) provided to you in relation to your interest in the fund.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3) | Amended by No 67 of 2024, effective sch 1 (items 4 ‑ 7), sch 3 (items 1 ‑ 7), sch 5 (items 49 ‑ 52), sch 6: 1 Oct 2024 (s 2(1) items 3, 7, 10, 12)

s 307-15 — Payments for your benefit or at your direction or request

(1) This section applies for the purposes of: (a) determining whether a payment is a superannuation benefit ; and (b) determining whether a * superannuation benefit is made to you, or received by you. (2) A payment is treated as being made to you, or received by you, if it is made: (a) for your benefit; or (b) to another person or to an entity at your direction or request. Note 1: Paragraph (a) would cover, for example, the reduction of a debt you have. Note 2: Paragraph (b) would cover, for example, a direction by you that a payment be rolled over from your original superannuation fund into another superannuation fund.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 47 of 2026, effective sch 1 (items 6-11): 21 May 2026 (s 2(1) item 1)

s 307-65 — Meaning of superannuation lump sum

(1) A superannuation lump sum is a * superannuation benefit that is not a * superannuation income stream benefit (see section 307 ‑ 70). (2) Treat a lump sum payment arising from a partial commutation of a * superannuation income stream as a superannuation lump sum for the purposes of this Act (other than Subdivision 295 ‑ F).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 307-70 — Meaning of superannuation income stream and superannuation income stream benefit

(1) A superannuation income stream benefit is a * superannuation benefit specified in the regulations that is paid from a * superannuation income stream. (2) A superannuation income stream has the meaning given by the regulations. Note: For the purposes of the transfer balance cap, the meaning of superannuation income stream is affected by subsection 294 ‑ 50(2).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 55 of 2017, effective Sch 1 (items 1–15, 32): 1 July 2017 (s 2(1) items 2, 7)

s 307-75 — Meaning of retirement phase superannuation income stream benefit

(1) A * superannuation income stream benefit is a retirement phase superannuation income stream benefit (or RP superannuation income stream benefit ) of a * superannuation fund at a time if it is payable by the fund at that time from a * superannuation income stream that is in the * retirement phase at that time. (2) A * superannuation income stream benefit is also a retirement phase superannuation income stream benefit (or RP superannuation income stream benefit ) of a * superannuation fund at a time if it is payable by the fund after that time from a * superannuation income stream that: (a) is a * deferred superannuation income stream; and (b) is in the * retirement phase at that time.

Amendment history: Inserted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 307-80 — When a superannuation income stream is in the retirement phase

(1) A * superannuation income stream is in the retirement phase at a time if a * superannuation income stream benefit is payable from it at that time. (2) A * superannuation income stream is also in the retirement phase at a time if: (a) it is a * deferred superannuation income stream; and (b) a * superannuation income stream benefit will be payable from it to a person after that time; and (c) the person has satisfied (whether at or before that time) a condition of release specified in any of the following items of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 : (i) 101 (retirement); (ii) 102A (terminal medical condition); (iii) 103 (permanent incapacity); (iv) 106 (attaining age 65). (3) However, a * superannuation income stream from which a * superannuation income stream benefit is payable is not in the retirement phase at a time if: (a) the superannuation income stream is any of the following: (i) a transition to retirement income stream (within the meaning of Part 6 of the Superannuation Industry (Supervision) Regulations 1994 ); (ii) a non ‑ commutable allocated annuity (within the meaning of those regulations); (iii) a non ‑ commutable allocated pension (within the meaning of those regulations); (iv) a transition to retirement pension (within the meaning of Part 4 of the Retirement Savings Accounts Regulations 1997 ); (v) a non ‑ commutable allocated pension (within the meaning of those regulations); and (aa) the person to whom the benefit is payable is not a reversionary beneficiary; and (b) at or before that time, the person to whom the benefit is payable: (i) has not satisfied a condition of release specified in paragraph (2)(c); or (ii) has satisfied a condition of release specified in subparagraph (2)(c)(i), (ii) or (iii), but has not notified the * superannuation income stream provider for the superannuation income stream of that fact. (4) A * superannuation income stream is also not in the retirement phase in an income year if: (a) the superannuation income stream is specified in a commutation authority issued by the Commissioner under Subdivision 136 ‑ B in Schedule 1 to the Taxation Administration Act 1953 to a * superannuation income stream provider; and (b) the superannuation income stream provider is required by section 136 ‑ 80 in that Schedule to pay a * superannuation lump sum but fails to do so within the 60 ‑ day period mentioned in that section; and (c) the income year is the income year in which the 60 ‑ day period ended, or a later income year. Note: The operation of this subsection in relation to the part of the income year before the end of the 60 ‑ day period is modified for the purposes of the transfer balance cap: see section 294 ‑ 50.

Amendment history: Inserted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 55 of 2017, effective Sch 1 (items 1–15, 32): 1 July 2017 (s 2(1) items 2, 7) | Amended by No 8 of 2019, effective Sch 3 (items 1, 10), Sch 8 (items 8, 10, 11, 13, 35–46), Sch 9 and 10: 1 Apr 2019 (s 2(1) items 3, 11, 13) Sch 11: 1 July 2019 (s 2(1) item 14)

s 307-120 — Components of superannuation benefit

(1) Work out the following components of a * superannuation benefit under this Subdivision: (a) the tax free component ; (b) the taxable component . (2) Work out those components under: (a) if the benefit is not mentioned in paragraph (b), (c), (d), (e) or (f)—section 307 ‑ 125; or (b) if the benefit is a * superannuation guarantee payment—section 307 ‑ 130; or (c) if the benefit is a * superannuation co ‑ contribution benefit payment—section 307 ‑ 135; or (d) if the benefit is a * contributions ‑ splitting superannuation benefit—section 307 ‑ 140; or (e) if the benefit is a payment under subsection 17(2), (2AB) or (2AC), 20H(2), (2AA), (2A) or (3), 20QF(2), (5) or (6), 21E(2), (5) or (6), 22B(2), (5) or (6), 24G(2), (3A) or (3B) or 24NA(2), (3) or (4) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 —section 307 ‑ 142; or (f) if the benefit is a payment by the Commissioner under subsection 131 ‑ 80(1) or (3) in Schedule 1 to the Taxation Administration Act 1953 —section 307 ‑ 143. (3) Those components may be modified under sections 307 ‑ 145 (which deals with certain disability benefits) and 307 ‑ 150 (which deals with certain * elements untaxed in fund).

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 151 of 2008, effective Sch 1 (items 27–37): 18 Dec 2008 (s 2(1) item 2) | Amended by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009 | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 16 of 2019, effective Sch 3 (items 1–15, 38): 13 Mar 2019 (s 2(1) item 2) | Amended by No 141 of 2020, effective Sch 1 (item 1) and Sch 4 (items 82–101): 1 Jan 2021 (s 2(1) items 2, 7) Sch 4 (item 146): 18 Dec 2020 (s 2(1) item 16) | Amended by No 24 of 2021, effective Sch 1 (items 1–14): 23 Mar 2021 (s 2(1) item 2) Sch 2 (items 1–14): 29 Mar 2021 (s 2(1) item 3) | Amended by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11)

s 307-125 — Proportioning rule

(1) The object of this section is to ensure that the * tax free component and * taxable component of a * superannuation benefit are calculated by: (a) first, determining the proportions of the * value of the * superannuation interest that those components represent; and (b) next, applying those proportions to the benefit. (2) The * superannuation benefit is taken to be paid in a way such that each of those components of the benefit bears the same proportion to the amount of the benefit that the corresponding component of the * superannuation interest bears to the * value of the superannuation interest. Example: The amount of a superannuation lump sum is $100. Just before the benefit is paid, the value of the superannuation interest was $1000 (of which $200 was the tax free component and $800 was the taxable component). For the lump sum, the tax free component is $20 and the taxable component is $80. (3) For the purposes of subsection (2), determine the * value of the * superannuation interest, and the amount of each of those components of the interest, at whichever of the following times is applicable: (a) if the * superannuation benefit is a * superannuation income stream benefit—when the relevant * superannuation income stream commenced; (b) if the superannuation benefit is a * superannuation lump sum—just before the benefit is paid; (c) despite paragraphs (a) and (b), if the superannuation benefit arises from the commutation of a superannuation income stream: (i) if subparagraph (ii) does not apply—when the relevant superannuation income stream commenced; or (ii) if the superannuation income stream is a * deferred superannuation income stream that had not commenced before the time the commutation happened—just before the time the commutation happened; (d) despite paragraphs (a) and (b), if: (i) the superannuation benefit is an * involuntary roll ‑ over superannuation benefit paid from a superannuation interest; and (ii) that interest was supporting a superannuation income stream immediately before that benefit was paid; when that superannuation income stream commenced. (4) Subsection (2) does not apply to a * superannuation benefit if any of the following applies: (a) the regulations specify an alternative method for determining those components of the benefit; (b) a determination under subsection (5) specifies an alternative method for determining those components of the benefit; (c) the Commissioner consents in writing to the use of another method for determining those components of the benefit. If so, use that method to determine those components of the benefit. (5) For the purposes of paragraph (4)(b), the Commissioner may determine, by legislative instrument, one or more alternative methods for determining those components of a * superannuation benefit. (6) If the * superannuation benefit is an * unclaimed money payment or a * small superannuation account payment, for the purposes of this section: (a) treat the benefit as a superannuation benefit paid from a * superannuation interest; and (b) treat the amount of the benefit as the * value of that superannuation interest just before the time the benefit is paid.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 21 of 2015, effective s 4 and Sch 6 (items 1, 2, 16–25, 73): 19 Mar 2015 (s 2(1) items 1, 7–11, 13) Sch 1 (items 1–17, 49), Sch 3 and Sch 7 (items 13–21): 20 Mar 2015 (s 2(1) items 2, 4, 15) Sch 4 (items 1–5, 9–17): 1 July 2015 (s 2(1) item 5) Sch 6 (items 51–59, 74–79): never commences (s 2(1) items 12, 14) | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5)

s 307-130 — Superannuation guarantee payment consists entirely of taxable component

The components of a * superannuation benefit that is a * superannuation guarantee payment are as follows: (a) the * tax free component is nil; (b) the * taxable component is the amount of the benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-133 — PPL superannuation contribution payment

The components of a * superannuation benefit that is a * PPL superannuation contribution payment are as follows: (a) the * tax free component is nil; (b) the * taxable component is the amount of the benefit.

Amendment history: Inserted by No 90 of 2024, effective sch 2 (items 2 ‑ 6): 2 Oct 2024 (s 2(1) item 1)

s 307-135 — Superannuation co ‑ contribution benefit payment consists entirely of tax free component

The components of a * superannuation benefit that is a * superannuation co ‑ contribution benefit payment are as follows: (a) the * tax free component is the amount of the benefit; (b) the * taxable component is nil.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-140 — Contributions ‑ splitting superannuation benefit consists entirely of taxable component

The components of a * superannuation benefit that is a * contributions ‑ splitting superannuation benefit are as follows: (a) the * tax free component is nil; (b) the * taxable component is the amount of the benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-142 — Components of certain unclaimed money payments

Preliminary (1) This section explains how to work out the * tax free component, and the * taxable component, of a * superannuation benefit that is a payment by the Commissioner under subsection 17(2), (2AB) or (2AC), 20H(2), (2AA), (2A) or (3), 20QF(2), (5) or (6), 21E(2), (5) or (6), 22B(2), (5) or (6), 24G(2), (3A) or (3B) or 24NA(2), (3) or (4) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 , or by a State or Territory authority as mentioned in subsection 18(5) of that Act, in respect of a person. Tax free component (2) Work out the * tax free component as follows (unless subsection (3B) or (3C) applies): Method statement Step 1. Work out the amount (the unclaimed amount ) (or amounts), set out in column 1 of the table in subsection (3), to which the * superannuation benefit is attributable. Note: A payment made under subsection 17(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 is attributable to a single unclaimed amount set out in item 1 or 2 of the table. A payment under subsection 20H(2) or (3) of that Act may be attributable to more than one unclaimed amount. A payment under subsection 20QF(2) of that Act is attributable to a single unclaimed amount set out in item 3A of the table. A payment under subsection 21E(2) of that Act is attributable to a single unclaimed amount set out in item 3B of the table. A payment under subsection 22B(2) of that Act is attributable to a single unclaimed amount set out in item 3C of the table. A payment made under subsection 24G(2) of that Act is attributable to a single unclaimed amount set out in item 4 of the table. A payment under subsection 24NA(2) or (3) of that Act may be attributable to more than one unclaimed amount. Step 2. Assume that the unclaimed amount (or each unclaimed amount), instead of being paid to the Commissioner, had been paid to the person as the payment (the claimed equivalent ) set out in column 2 of the table. Step 3. The * tax free component of the * superannuation benefit consists of so much of the superannuation benefit as is attributable to the amount set out in column 3 of the table for the claimed equivalent (or as is attributable to the amounts set out in that column for the claimed equivalents). (3) This is the table mentioned in subsection (2): Tax free component Item Column 1 Unclaimed amount Column 2 Claimed equivalent Column 3 Tax free component of claimed equivalent 1 an amount paid, on or after 1 July 2007, to: (a) the Commissioner under subsection 17(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ; or (b) a State or Territory authority, as mentioned in subsection 18(4) of that Act; in respect of the person a * superannuation benefit paid from a * superannuation plan the * tax free component of that superannuation benefit 2 an amount paid, before 1 July 2007, to: (a) the Commissioner under subsection 17(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ; or (b) a State or Territory authority, as mentioned in subsection 18(4) of that Act; in respect of the person an eligible termination payment (within the meaning of subsection 27A(1) of the Income Tax Assessment Act 1936 , as in force just before 1 July 2007) the total of the components, of that eligible termination payment, referred to in subsection 307 ‑ 225(2) of this Act 3 an amount paid to the Commissioner under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person (other than an amount referred to in section 65AA of the Superannuation Guarantee (Administration) Act 199 2) a * superannuation benefit paid from a * superannuation plan the * tax free component of that superannuation benefit 3A an amount paid to the Commissioner under section 20QD of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * tax free component of that superannuation benefit 3B an amount paid to the Commissioner under section 21C of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * tax free component of that superannuation benefit 3C an amount paid to the Commissioner under section 22 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * tax free component of that superannuation benefit 4 an amount paid to the Commissioner under section 24E of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * tax free component of that superannuation benefit Note 1: Section 65AA of the Superannuation Guarantee (Administration) Act 1992 requires certain shortfall components to be treated as amounts paid to the Commissioner under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 . The effect of excluding such shortfall components from item 3 of the table in this subsection is that the taxable component includes so much of the superannuation benefit as is attributable to such a shortfall component. Note 2: The table in this subsection does not cover interest paid by the Commissioner under subsection 20H(2A) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 . The effect of this is that the taxable component includes so much of the superannuation benefit as is attributable to such interest. (3A) Treat the amount set out in column 3 of an item of the table in subsection (3) as being nil, if: (a) the unclaimed amount set out in column 1 of the item is an amount paid to the Commissioner by a State or Territory authority (within the meaning of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ) in the circumstances mentioned in section 18AA, 20JA, 20QH or 24HA of that Act; and (b) the Commissioner does not have sufficient information to work out the amount set out in column 3 of the item. (3B) The * tax free component is the amount of the benefit, if the * superannuation benefit is paid under subsection 17(2AB) or (2AC), 20H(2AA), 20QF(5) or (6), 21E(5) or (6), 22B(5) or (6), 24G(3A) or (3B) or 24NA(4) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (interest). (3C) Despite subsection (3B), the * tax free component is nil, if the * superannuation benefit is paid under subsection 20H(2AA) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (interest) in respect of a person who: (a) is a former temporary resident (within the meaning of that Act) when the payment is made; or (b) if the person died before the payment is made—was a former temporary resident just before dying. Taxable component (4) The * taxable component is so much (if any) of the * superannuation benefit as is not the * tax free component.

Amendment history: Inserted by No 151 of 2008, effective Sch 1 (items 27–37): 18 Dec 2008 (s 2(1) item 2) | Repealed and substituted by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009 | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 117 of 2010, effective Sch 1 (items 15–20, 21(2)) and Sch 4 (items 1–17, 19–24, 26–29, 31, 32): 17 Nov 2010 (s 2(1) items 2, 6) Sch 2 (items 2, 3): 1 Dec 2010 (s 2(1) item 3) Sch 2 (item 6): 1 Jan 2017 (s 2(1) item 4) | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 16 of 2019, effective Sch 3 (items 1–15, 38): 13 Mar 2019 (s 2(1) item 2) | Amended by No 141 of 2020, effective Sch 1 (item 1) and Sch 4 (items 82–101): 1 Jan 2021 (s 2(1) items 2, 7) Sch 4 (item 146): 18 Dec 2020 (s 2(1) item 16) | Amended by No 24 of 2021, effective Sch 1 (items 1–14): 23 Mar 2021 (s 2(1) item 2) Sch 2 (items 1–14): 29 Mar 2021 (s 2(1) item 3)

s 307-143 — Components of a superannuation benefit that is a repayment when an entitlement to a credit ceases for a release authority relating to an FHSS determination

Preliminary (1) This section explains how to work out the * tax free component, and the * taxable component, of your * superannuation benefit that: (a) is a repayment by the Commissioner under subsection 131 ‑ 80(1) in Schedule 1 to the Taxation Administration Act 1953 of an amount (the released amount ) paid to the Commissioner in relation to you; or (b) is a payment by the Commissioner under subsection 131 ‑ 80(3) in Schedule 1 to the Taxation Administration Act 1953 of an equivalent amount to an amount (the released amount ) paid to the Commissioner in relation to you. Tax free component (2) The * tax free component of your * superannuation benefit is equal to the total amount that the released amount reduced the tax free components of your * superannuation interests. Taxable component (3) The * taxable component of your * superannuation benefit is equal to the total amount that the released amount reduced the taxable components of your * superannuation interests.

Amendment history: Inserted by No 75 of 2023, effective sch 4 (items 1-13, 28, 30): 15 Sept 2024 (s 2(1) item 11)

s 307-145 — Modification for disability benefits

(1) Work out the tax free component of the * superannuation benefit under subsection (2) if the benefit is a * superannuation lump sum and a * disability superannuation benefit. Note: This section does not apply to an unclaimed money payment. (2) The tax free component is the sum of: (a) the * tax free component of the benefit worked out apart from this section; and (b) the amount worked out under subsection (3). However, the tax free component cannot exceed the amount of the benefit. (3) Work out the amount by applying the following formula: where: days to retirement is the number of days from the day on which the person stopped being capable of being * gainfully employed to his or her * last retirement day. service days is the number of days in the * service period for the lump sum. (4) The balance of the * superannuation benefit is the taxable component of the benefit.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009

s 307-150 — Modification in respect of superannuation lump sum with element untaxed in fund

(1) This section applies to a * superannuation lump sum if: (a) it is not a * roll ‑ over superannuation benefit; or (b) it is a roll ‑ over superannuation benefit that includes an * element untaxed in the fund, all or part of which will be included in the assessable income of the * superannuation provider in relation to the * superannuation fund into which the benefit is paid. (2) However, this section applies to the * superannuation lump sum only to the extent that it is attributable to a * superannuation interest that existed just before 1 July 2007. (3) If the * superannuation lump sum includes an * element untaxed in the fund: (a) increase the * tax free component of the benefit by the amount that is the lesser of these amounts: (i) the amount worked out under subsection (4); and (ii) the amount of the element untaxed in the fund (apart from this section); and (b) reduce the element untaxed in the fund by the lesser of those amounts. (4) Work out the amount by applying the following formula: where: original tax free component and untaxed element is the sum of: (a) the * tax free component of the * superannuation benefit (apart from this section); and (b) the * element untaxed in the fund of the superannuation benefit (apart from this section). (5) If the benefit is in part attributable to a * crystallised pre ‑ July 83 amount, in working out the * tax free component of the * superannuation benefit (apart from this section) for the purposes of subsection (4), disregard the amount of the benefit that is attributable to the * crystallised segment of the * superannuation interest from which the benefit is paid.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-230A — Total superannuation balance value

(1) The total superannuation balance value , at a particular time, of a * superannuation interest is: (a) if the regulations specify a value, or a method for determining a value, for the purposes of this paragraph—the specified value, or the value determined in accordance with the specified method; or (b) otherwise—the total amount of the * superannuation benefits that would become payable if: (i) the individual to whom the superannuation interest relates had the right to cause the superannuation interest to cease at that time; and (ii) the individual voluntarily caused the superannuation interest to cease at that time. (2) Regulations made for the purposes of paragraph (1)(a) may specify a value or method in different ways depending on any of the following matters: (a) the individual to whom the * superannuation interest relates; (b) whether the superannuation interest is in the * retirement phase; (c) whether the superannuation interest is or includes a * defined benefit interest; (d) the * superannuation income stream (if any) supported by the superannuation interest; (e) if the superannuation interest is an interest in a * superannuation fund or * approved deposit fund—the rules of the fund; (f) if the superannuation interest is an interest in an * RSA—the terms and conditions of the RSA; (g) the * superannuation provider in relation to the * superannuation plan in which the individual holds the superannuation interest; (h) whether the superannuation interest is subject to a * payment split; (i) whether the individual is treated as having the superannuation interest under subsection 307 ‑ 230(3); (j) the death of the individual; (k) any other matter. (3) Regulations made for the purposes of paragraph (1)(a) may provide for a value to be determined wholly or partly by reference to: (a) methods or factors that are approved by legislative instrument by a Minister: (i) for the purposes of the regulations; or (ii) for the purposes of another Act or legislative instrument; or (b) an * actuary’s certificate. (4) Regulations made for the purposes of paragraph (1)(a) may specify circumstances in which a * total superannuation balance value is nil. (5) Subsections (2), (3) and (4) do not limit the regulations that may be made for the purposes of paragraph (1)(a).

Amendment history: Inserted by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 307-200 — Regulations relating to meaning of superannuation interests

(1) In the circumstances specified in the regulations, treat a superannuation interest as two or more superannuation interests in the way specified in the regulations. (2) In the circumstances specified in the regulations, treat 2 or more superannuation interests as one superannuation interest in the way specified in the regulations. (3) Regulations for the purposes of this section may specify a way of treating a * superannuation interest in relation to one or more of the following aspects of the interest: (a) the * tax free component (and the * contributions segment and * crystallised segment relating to that component); (b) the * taxable component; (c) the * element taxed in the fund of the taxable component; (d) the * element untaxed in the fund of the taxable component. (4) Regulations for the purposes of subsection (1) may specify a way of allocating an amount relating to a * superannuation interest treated as two or more superannuation interests in accordance with those regulations to those interests. (5) Subsections (3) and (4) do not limit the regulations that may be made for the purposes of this section.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-205 — Value of superannuation interest

The value of a * superannuation interest at a particular time is: (a) if the regulations specify a method for determining the value of the superannuation interest—that value; or (b) otherwise—the total amount of all the * superannuation lump sums that could be payable from the interest at that time.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 307-210 — Tax free component of superannuation interest

(1) The tax free component of a * superannuation interest is so much of the * value of the interest as consists of: (a) the * contributions segment of the interest; and (b) the * crystallised segment of the interest. Tax free component reduces if a benefit is paid (2) If a * superannuation benefit is paid from the * superannuation interest: (a) the * crystallised segment of the interest is reduced (but not below zero) by an amount equal to the * tax free component of the benefit; and (b) if any of that amount remains, the * contributions segment of the interest is reduced (but not below zero) by that remaining amount. Note: This has the effect of reducing the interest’s tax free component by the amount of the benefit’s tax free component.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 21 of 2015, effective s 4 and Sch 6 (items 1, 2, 16–25, 73): 19 Mar 2015 (s 2(1) items 1, 7–11, 13) Sch 1 (items 1–17, 49), Sch 3 and Sch 7 (items 13–21): 20 Mar 2015 (s 2(1) items 2, 4, 15) Sch 4 (items 1–5, 9–17): 1 July 2015 (s 2(1) item 5) Sch 6 (items 51–59, 74–79): never commences (s 2(1) items 12, 14)

s 307-215 — Taxable component of superannuation interest

The taxable component of a * superannuation interest is the * value of the interest less the * tax free component of the interest.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-220 — What is the contributions segment ?

(1) The contributions segment of a * superannuation interest is the total amount of the contributions to the interest: (a) that were made after 30 June 2007; and (b) to the extent that they have not been and will not be included in the assessable income of the * superannuation provider in relation to the * superannuation plan in which the interest is held. This section has effect subject to subsection 307 ‑ 210(2). Note: This segment may be reduced if a superannuation benefit is paid from the superannuation interest: see subsection 307 ‑ 210(2). (2) For the purposes of this section: (a) in determining whether contributions are included in the contributions segment under subsection (1): (i) disregard the * taxable component of a * roll ‑ over superannuation benefit paid into the interest; and (ia) disregard the * tax free component of an * involuntary roll ‑ over superannuation benefit paid into the interest from another superannuation interest (the earlier interest ) (other than an earlier interest that was supporting a * superannuation income stream immediately before that benefit was paid); and (ib) if subparagraph (ia) applies—include as a contribution an amount equal to the amount referred to in subsection (5); and (ii) for a * superannuation plan that is a * constitutionally protected fund—treat the superannuation plan as if it were not a constitutionally protected fund; and (b) disregard section 295 ‑ 180 and Subdivision 295 ‑ D. (3) For the purposes of subparagraph (2)(a)(i), treat the * excess untaxed roll ‑ over amount (if any) of the * roll ‑ over superannuation benefit as part of the * tax free component of the benefit instead of the * taxable component of the benefit. (4) Subparagraph (2)(a)(i) does not apply to a * roll ‑ over superannuation benefit that is a * departing Australia superannuation payment made under subsection 20H(2), (2AA) or (2A) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 . Note 1: The whole departing Australia superannuation payment is included in the contributions segment of the superannuation interest, as none of the payment has been or will be included in the superannuation provider’s assessable income. Note 2: Including the whole payment in that segment, and thus the tax free component, of the superannuation interest ensures that the amount of the payment, which is taxed by the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 , does not attract more tax when paid as a superannuation benefit from the interest. (5) For the purposes of subparagraph (2)(a)(ib), the amount is: (a) if the * involuntary roll ‑ over superannuation benefit is covered by paragraph 306 ‑ 12(a) or (c)—the sum of the contributions segment, and crystallised segment, of the earlier interest immediately before the benefit was paid; or (b) if the benefit is covered by paragraph 306 ‑ 12(b)—the proportion of that sum that the benefit was to the * value of the earlier interest immediately before the benefit was paid.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 151 of 2008, effective Sch 1 (items 27–37): 18 Dec 2008 (s 2(1) item 2) | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 21 of 2015, effective s 4 and Sch 6 (items 1, 2, 16–25, 73): 19 Mar 2015 (s 2(1) items 1, 7–11, 13) Sch 1 (items 1–17, 49), Sch 3 and Sch 7 (items 13–21): 20 Mar 2015 (s 2(1) items 2, 4, 15) Sch 4 (items 1–5, 9–17): 1 July 2015 (s 2(1) item 5) Sch 6 (items 51–59, 74–79): never commences (s 2(1) items 12, 14)

s 307-225 — What is the crystallised segment ?

(1) To work out the crystallised segment of a * superannuation interest, first assume that: (a) an eligible termination payment had been made in respect of the holder of the interest just before 1 July 2007; and (b) the amount of the eligible termination payment had been equal to the * value of the interest at that time. (2) The crystallised segment of the * superannuation interest is the total amount of the following components of the eligible termination payment: (a) the concessional component; (b) the post ‑ June 1994 invalidity component; (c) the undeducted contributions; (d) the CGT exempt component; (e) the pre ‑ July 83 component. This section has effect subject to subsection 307 ‑ 210(2). Note: This segment may be reduced if a superannuation benefit is paid from the superannuation interest: see subsection 307 ‑ 210(2). (3) For the purposes of paragraph (2)(e), disregard the * value of the interest just before 1 July 2007 to the extent that it would consist, apart from this subsection, of the * element untaxed in the fund of the * taxable component of a * superannuation benefit constituted by the eligible termination payment. (4) In this section, the following terms have the same meaning as in subsection 27A(1) of the Income Tax Assessment Act 1936 (as in force just before 1 July 2007): (a) concessional component ; (b) post ‑ June 1994 invalidity component ; (c) undeducted contributions ; (d) CGT exempt component ; (e) pre ‑ July 83 component ; (f) eligible termination payment .

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 21 of 2015, effective s 4 and Sch 6 (items 1, 2, 16–25, 73): 19 Mar 2015 (s 2(1) items 1, 7–11, 13) Sch 1 (items 1–17, 49), Sch 3 and Sch 7 (items 13–21): 20 Mar 2015 (s 2(1) items 2, 4, 15) Sch 4 (items 1–5, 9–17): 1 July 2015 (s 2(1) item 5) Sch 6 (items 51–59, 74–79): never commences (s 2(1) items 12, 14)

s 307-230 — Total superannuation balance

(1) Your total superannuation balance , at a particular time, is the sum of the following: (a) the * total superannuation balance value, at that time, of each of the following * superannuation interests (other than an interest in a * superannuation plan that, at that time, is a * foreign superannuation fund): (i) a superannuation interest of yours; (ii) a superannuation interest that supports a * superannuation income stream of which you are a * retirement phase recipient because of the death of another person; (c) the amount of each * roll ‑ over superannuation benefit: (i) paid at or before that time; and (ii) received by the * complying superannuation plan, or the entity from which the * superannuation annuity is being purchased, after that time; and (iii) not reflected in the value in paragraph (a); (d) if you have an LRBA amount under section 307 ‑ 231 (about limited recourse borrowing arrangements) in relation to one or more * regulated superannuation funds—the LRBA amounts for each such regulated superannuation fund. Modification for structured settlement contributions (2) However, if a * structured settlement contribution is made at or before a time in respect of you, your total superannuation balance at that time is modified by reducing the sum worked out under subsection (1) by the sum of any such structured settlement contributions. Family law splits (3) For the purposes of the provisions mentioned in subsection (5), you are treated as having a * superannuation interest in a * superannuation plan if: (a) you are a * non ‑ member spouse in relation to a superannuation interest that: (i) is an interest in that superannuation plan; and (ii) is subject to a * payment split but remains an interest of the * member spouse; and (b) circumstances prescribed by the regulations for the purposes of this paragraph exist. (4) For the purposes of the provisions mentioned in subsection (5), the regulations must specify whether the * superannuation interest that you are treated as having is to be treated as being a * defined benefit interest. Note: Regulations made for the purposes of paragraph 307 ‑ 230A(1)(a) may specify the total superannuation balance value of the interest. (5) The provisions are the following: (a) subsection (1) of this section; (b) section 307 ‑ 230A; (c) the * Division 296 tax law.

Amendment history: Inserted by No 81 of 2016, effective Sch 1 (items 2–6, 26–32, 36), Sch 2 (items 1–8, 13–18, 20), Sch 3 (items 1–5, 9), Sch 5–8, Sch 9 (items 1–3, 5), Sch 10 (items 72–80, 93) and Sch 11: 1 Jan 2017 (s 2(1) items 2, 4, 6, 9) Sch 10 (items 2–27, 49–54): 1 July 2018 (s 2(1) item 5) | Amended by No 78 of 2019, effective Sch 2 and Sch 3 (items 1, 2): 1 Jan 2020 (s 2(1) item 3) | Amended by No 8 of 2026, effective sch 1 (items 12 ‑ 23), sch 2 (items 1 ‑ 10), sch 3 (items 1 ‑ 4): 1 Apr 2026 (s 2(1) items 2, 3)

s 307-231 — Limited recourse borrowing arrangements

(1) You have an amount under this section (an LRBA amount ), in relation to a * regulated superannuation fund in which you have one or more * superannuation interests, if: (a) the * superannuation provider in relation to the fund has a * borrowing under an * arrangement that is covered by the exception in subsection 67A(1) of the Superannuation Industry (Supervision) Act 1993 (which is about limited recourse borrowing arrangements); and (b) the borrowing has not been repaid at the time of working out your * total superannuation balance; and (c) at that time, the asset or assets that secure the borrowing support, to an extent, a superannuation interest of yours; and (d) the fund is a * small superannuation fund at that time; and (e) either: (i) you have satisfied (whether at or before that time) a condition of release specified in paragraph 307 ‑ 80(2)(c); or (ii) the lender is an * associate of the superannuation provider. Note: Subsection 318(3) of the Income Tax Assessment Act 1936 sets out when an entity is an associate of a trustee. (2) The amount of your LRBA amount in relation to the * regulated superannuation fund is the sum of the amounts worked out under subsection (3) for: (a) if subparagraph (1)(e)(i) applies—each * borrowing that satisfies paragraphs (1)(a), (b) and (c); or (b) if subparagraph (1)(e)(i) does not apply—each borrowing that satisfies paragraphs (1)(a), (b) and (c) and subparagraph (1)(e)(ii). (3) The amount under this subsection, in respect of a * borrowing, is worked out using the following formula: where: outstanding balance means the outstanding balance on the * borrowing at the time of working out your * total superannuation balance. value of all supported super interests means the sum of the * values at that time of all * superannuation interests in the * regulated superannuation fund that are supported by the asset or assets that secure the * borrowing. value of your supported super interests means the sum of the * values at that time of each * superannuation interest of yours that is supported by the asset or assets that secure the * borrowing.

Amendment history: Inserted by No 78 of 2019, effective Sch 2 and Sch 3 (items 1, 2): 1 Jan 2020 (s 2(1) item 3) | Amended by No 47 of 2021, effective Sch 1 (items 4–9): 1 July 2021 (s 2(1) item 1)

s 307-275 — Element taxed in the fund and element untaxed in the fund of superannuation benefits

(1) The * taxable component of a * superannuation benefit consists of an element taxed in the fund or an element untaxed in the fund , or both. (2) The * taxable component of a * superannuation benefit consists wholly of an element taxed in the fund except as provided in a later section of this Subdivision. (3) Despite subsection (2), the * taxable component of any of the following kinds of * superannuation benefit consists wholly of an element untaxed in the fund : (a) a * small superannuation account payment; (b) a * superannuation guarantee payment.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-280 — Superannuation benefits from constitutionally protected funds etc.

(1) The * taxable component of a * superannuation benefit paid from a * superannuation fund that is a * constitutionally protected fund consists wholly of an element untaxed in the fund . (2) Despite subsection (1), if: (a) the benefit is a * superannuation lump sum; and (b) the benefit is attributable to one or more * roll ‑ over superannuation benefits that consisted of, or included, an * element taxed in the fund; the * taxable component of the benefit has an element taxed in the fund equal to the total of those elements taxed in the fund. (3) The * taxable component of a * superannuation income stream benefit consists wholly of an element untaxed in the fund if it is paid from a * superannuation fund that was a * constitutionally protected fund on the first day of the period to which the * superannuation income stream relates.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-285 — Trustee can choose to convert element taxed in the fund to element untaxed in the fund

(1) If: (a) you receive a * superannuation benefit from a * public sector superannuation scheme; and (b) the trustee of the scheme gives you written notice specifying an amount as the * element untaxed in the fund of the * taxable component of the benefit; and (c) the notice is given within the time and in the manner approved by the Commissioner in writing; and (d) the scheme came into operation on or before 5 September 2006; the taxable component consists of an element untaxed in the fund equal to the specified amount. (2) The trustee of the scheme can give only one notice under subsection (1) in relation to a particular * superannuation lump sum.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 307-290 — Taxed and untaxed elements of death benefit superannuation lump sums

(1) This section applies to a * superannuation death benefit that is a * superannuation lump sum, in relation to which a deduction has been, or is to be, claimed under section 295 ‑ 465 or 295 ‑ 470. Note 1: Those sections allow deductions for insurance premiums that have been paid, and for liability for future benefits. Note 2: Deductions made under former section 279 or 279B of the Income Tax Assessment Act 1936 are treated for the purposes of this section as having been made under section 295 ‑ 465 or 295 ‑ 470 (see section 307 ‑ 290 of the Income Tax (Transitional Provisions) Act 1997 ). (2) The * taxable component of the * superannuation lump sum includes an element taxed in the fund worked out as follows: (a) first, work out the amount under the formula in subsection (3); (b) next, reduce that amount (but not below zero) by the * tax free component (if any) of the superannuation lump sum. (3) For the purposes of paragraph (2)(a), the formula is: where: days to retirement is the number of days from the day on which the deceased died to the deceased’s * last retirement day. service days is the number of days in the * service period for the lump sum. (4) The element untaxed in the fund of the * taxable component is the balance of the taxable component.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 143 of 2007, effective Schedule 1 (items 1, 4, 128–194, 222, 223, 225, 226), Schedule 2, Schedule 5 (items 1–16, 48(1)–(3)), Schedule 6 and Schedule 7 (items 18–68): Royal Assent Schedule 5 (items 31–46): 15 Mar 2007 (s 2(1) item 6) | Amended by No 15 of 2017, effective Sch 1 (item 1): 1 Mar 2017 (s 2(1) item 2) Sch 2 and Sch 4 (items 26–69, 71–83): 1 Apr 2017 (s 2(1) items 3, 8, 10) Sch 4 (item 70): 19 Mar 2015 (s 2(1) item 9)

s 307-295 — Superannuation benefits from public sector superannuation schemes may include untaxed element

(1) This section applies to a * superannuation benefit that is paid from a * public sector superannuation scheme that is not a * constitutionally protected fund. (2) If the * superannuation benefit paid is not sourced to any extent from contributions made into a * superannuation fund or earnings on such contributions, the * taxable component of the superannuation benefit consists wholly of an element untaxed in the fund . (3) If the benefit is a * superannuation lump sum that is partly sourced from contributions made into a * superannuation fund or earnings on such contributions, the element taxed in the fund and the element untaxed in the fund of the * taxable component of the benefit are worked out as follows: Method statement Step 1. Subdivide the * taxable component of the * superannuation lump sum (the original benefit ) into 2 notional superannuation lump sums as follows: (a) the amount sourced from contributions made into a * superannuation fund or earnings on such contributions (the fund benefit ); (b) the remainder of the taxable component of the lump sum (the non ‑ fund benefit ). Step 2. The fund benefit consists of an element taxed in the fund , an element untaxed in the fund , or both, as worked out under this Subdivision. Step 3. The non ‑ fund benefit consists wholly of an element untaxed in the fund . Step 4. The element taxed in the fund of the original benefit equals the element taxed in the fund of the fund benefit. Step 5. The element untaxed in the fund of the original benefit is the sum of the elements untaxed in the fund worked out under steps 2 and 3.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3)

s 307-297 — Public sector superannuation schemes—elements set by regulations

(1) This section applies to a * superannuation benefit that is paid from a * public sector superannuation scheme that is not a * constitutionally protected fund. (2) Despite any other provision of this Subdivision, the * taxable component of the * superannuation benefit consists of an element untaxed in the fund equal to the amount (if any) specified by the regulations in relation to the benefit for the purposes of this section. (3) The amount specified must not be less than the amount that would be the * element untaxed in the fund under the other provisions of this Subdivision.

Amendment history: Inserted by No 117 of 2010, effective Sch 1 (items 15–20, 21(2)) and Sch 4 (items 1–17, 19–24, 26–29, 31, 32): 17 Nov 2010 (s 2(1) items 2, 6) Sch 2 (items 2, 3): 1 Dec 2010 (s 2(1) item 3) Sch 2 (item 6): 1 Jan 2017 (s 2(1) item 4)

s 307-300 — Certain unclaimed money payments

Preliminary (1) This section explains how to work out the * element taxed in the fund, and the * element untaxed in the fund, of the * taxable component of a * superannuation benefit that is a payment by the Commissioner under subsection 17(2), 20H(2), (2AA), (2A) or (3), 20QF(2), 21E(2), 22B(2), 24G(2) or 24NA(2) or (3) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 . Element taxed in the fund (2) Work out the element taxed in the fund as follows (unless subsection (3A) applies): Method statement Step 1. Work out the amount (the unclaimed amount ) (or amounts), set out in column 1 of the table in subsection (3), to which the * taxable component is attributable. Note: A payment made under subsection 17(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 is attributable to a single unclaimed amount set out in item 1 or 2 of the table. A payment under subsection 20H(2) or (3) of that Act may be attributable to more than one unclaimed amount. A payment under subsection 20QF(2) of that Act is attributable to a single unclaimed amount set out in item 3A of the table. A payment under subsection 21E(2) of that Act is attributable to a single unclaimed amount set out in item 3B of the table. A payment under subsection 22B(2) of that Act is attributable to a single unclaimed amount set out in item 3C of the table. A payment made under subsection 24G(2) of that Act is attributable to a single unclaimed amount set out in item 4 of the table. A payment under subsection 24NA(2) or (3) of that Act may be attributable to more than one unclaimed amount. Step 2. Assume that the unclaimed amount (or each unclaimed amount), instead of being paid to the Commissioner, had been paid to the person as the payment (the claimed equivalent ) set out in column 2 of the table. Step 3. The element taxed in the fund of the * taxable component consists of so much of the taxable component as is attributable to the amount set out in column 3 of the table for the claimed equivalent (or as is attributable to the amounts set out in that column for the claimed equivalents). (3) This is the table mentioned in subsection (2): Element taxed in the fund Item Column 1 Unclaimed amount Column 2 Claimed equivalent Column 3 Taxed element of claimed equivalent 1 an amount paid, on or after 1 July 2007, to the Commissioner under subsection 17(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * element taxed in the fund of the * taxable component of that superannuation benefit 2 an amount paid, before 1 July 2007, to the Commissioner under subsection 17(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person an eligible termination payment (within the meaning of subsection 27A(1) of the Income Tax Assessment Act 1936 , as in force just before 1 July 2007) the taxed element of the post ‑ June 83 component of that eligible termination payment under Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 , as in force just before 1 July 2007 3 an amount paid to the Commissioner under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person (other than an amount referred to in section 65AA of the Superannuation Guarantee (Administration) Act 199 2) a * superannuation benefit paid from a * superannuation plan the * element taxed in the fund of the * taxable component of that superannuation benefit 3A an amount paid to the Commissioner under section 20QD of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * element taxed in the fund of the * taxable component of that superannuation benefit 3B an amount paid to the Commissioner under section 21C of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * element taxed in the fund of the * taxable component of that superannuation benefit 3C an amount paid to the Commissioner under section 22 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * element taxed in the fund of the * taxable component of that superannuation benefit 4 an amount paid to the Commissioner under section 24E of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of the person a * superannuation benefit paid from a * superannuation plan the * element taxed in the fund of the * taxable component of that superannuation benefit Note 1: Section 65AA of the Superannuation Guarantee (Administration) Act 1992 requires certain shortfall components to be treated as amounts paid to the Commissioner under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 . The effect of excluding such shortfall components from item 3 of the table in this subsection is that the element untaxed in the fund includes so much of the superannuation benefit as is attributable to such a shortfall component. Note 2: The table in this subsection does not cover interest paid by the Commissioner under subsection 20H(2A) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 . The effect of this is that the element untaxed in the fund of the taxable component includes so much of the superannuation benefit as is attributable to such interest. (3A) The element taxed in the fund is nil, if the * superannuation benefit is paid under subsection 20H(2AA) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (interest). Note: The taxable component of a superannuation benefit paid by the Commissioner under subsection 17(2AB) or (2AC), 20QF(5) or (6), 21E(5) or (6), 22B(5) or (6) or 24G(3A) or (3B) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 , or under subsection 20H(2AA) in respect of a person who is not a former temporary resident, is nil: see subsections 307 ‑ 142(3B) and (4) of this Act. Element untaxed in the fund (4) The element untaxed in the fund of the * taxable component is so much (if any) of the taxable component as is not the element taxed in the fund.

Amendment history: Inserted by No 151 of 2008, effective Sch 1 (items 27–37): 18 Dec 2008 (s 2(1) item 2) | Repealed and substituted by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009 | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 16 of 2019, effective Sch 3 (items 1–15, 38): 13 Mar 2019 (s 2(1) item 2) | Amended by No 141 of 2020, effective Sch 1 (item 1) and Sch 4 (items 82–101): 1 Jan 2021 (s 2(1) items 2, 7) Sch 4 (item 146): 18 Dec 2020 (s 2(1) item 16) | Amended by No 24 of 2021, effective Sch 1 (items 1–14): 23 Mar 2021 (s 2(1) item 2) Sch 2 (items 1–14): 29 Mar 2021 (s 2(1) item 3)

s 307-345 — Low rate cap amount

Starting amount (1) Your low rate cap amount for the 2007 ‑ 2008 income year is $140,000. Note: However, if you became entitled to a rebate under the corresponding provision of the Income Tax Assessment Act 1936 , see section 307 ‑ 345 of the Income Tax (Transitional Provisions) Act 1997 . Reductions and increases (2) If you receive one or more * superannuation member benefits that are * superannuation lump sums in an income year, reduce your low rate cap amount for the next income year (but not below zero) by the total of the amounts that: (a) are included in your assessable income for the first year in respect of those lump sums; and (b) are counted towards your entitlement to a * tax offset under subsection 301 ‑ 20(2) or 301 ‑ 105(4) for the first year. (3) At the start of each income year after the 2007 ‑ 2008 income year, increase your low rate cap amount by the amount (if any) by which the index amount for that income year exceeds the index amount for the previous income year. (4) For the purposes of subsection (3), the index amount for the 2007 ‑ 2008 income year is $140,000. The index amount is then indexed annually. Note: Subdivision 960 ‑ M shows how to index amounts. However, annual indexation does not necessarily increase the index amount: see section 960 ‑ 285.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 307-350 — Untaxed plan cap amount

(1) Your untaxed plan cap amount for a * superannuation plan at the start of the 2007 ‑ 2008 income year is $1,000,000. Reductions and increases (1A) Subsection (2) applies if: (a) you receive one or more * superannuation member benefits from a * superannuation plan at a time; and (b) the benefit, or one or more of the benefits: (i) is a * superannuation lump sum; and (ii) includes an * element untaxed in the fund. (2) Reduce your untaxed plan cap amount just after that time: (a) if the total of the * elements untaxed in the fund of the * superannuation member benefits to which paragraph (1A)(b) applies falls short of your untaxed plan cap amount at that time—by that total; or (b) otherwise—to nil. (2A) For the purposes of subsections (1A) and (2), disregard subsection 307 ‑ 5(8). (2B) For the purposes of the application of this section in relation to * superannuation lump sums paid by the Commissioner under subsections 17(2), 20H(2), (2AA), (2A) and (3), 20QF(2), 21E(2), 22B(2) and 24G(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 , treat all such lump sums as if they were paid from a single * superannuation plan. (3) At the start of each income year after the 2007 ‑ 2008 income year, increase your untaxed plan cap amount for the * superannuation plan by the amount (if any) by which the index amount for that income year exceeds the index amount for the previous income year. (4) For the purposes of subsection (3), the index amount for the 2007 ‑ 2008 income year is $1,000,000. The index amount is then indexed annually. Note: Subdivision 960 ‑ M shows how to index amounts. However, annual indexation does not necessarily increase the index amount: see section 960 ‑ 285.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent | Amended by No 15 of 2007, effective s 4, Sch 1 (items 150–236, 240, 242–260, 406(1)–(3)), Sch 3 (items 8–44, 66) and Sch 4 (items 1–8): 15 Mar 2007 (s 2(1) items 1, 2, 6, 8, 9) Sch 2: 12 Apr 2007 (s 2(1) item 3) | Amended by No 27 of 2009, effective Schedule 2 (items 43–52) and Schedule 3 (items 6–10, 44–47, 102(1)): 27 Mar 2009 | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29) | Amended by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15) | Amended by No 16 of 2019, effective Sch 3 (items 1–15, 38): 13 Mar 2019 (s 2(1) item 2) | Amended by No 24 of 2021, effective Sch 1 (items 1–14): 23 Mar 2021 (s 2(1) item 2) Sch 2 (items 1–14): 29 Mar 2021 (s 2(1) item 3)

s 307-400 — Meaning of service period for a superannuation lump sum

(1) The service period for a * superannuation lump sum consists of each day that is in the period worked out under the table or a period covered by subsection (2). Service period for superannuation lump sum types Item For this superannuation lump sum type: The service period includes: 1 * Superannuation fund payment The following: (a) if some or all of the * superannuation lump sum accrued while you were, or the deceased was, a member of the * superannuation fund—the period of membership; (b) if some or all of the superannuation lump sum accrued while you were, or the deceased was, employed (or you or the deceased held office)—each period of employment (or of holding office) to which the lump sum relates. 2 * approved deposit fund payment The period starting when you or the deceased first made a deposit to the * approved deposit fund and ending when the payment is made. 3 * RSA payment The following: (a) if some or all of the * superannuation lump sum accrued while you were, or the deceased was, the holder of the * RSA—the period during which you were, or the deceased was, the holder of the RSA; (b) if some or all of the superannuation lump sum accrued while you were, or the deceased was, employed (or you or the deceased held office)—each period of employment (or of holding office) to which the lump sum relates. (2) The service period for the * superannuation lump sum (the later lump sum ) also includes each day that is in the * service period for an earlier superannuation lump sum if some or all of the later lump sum is attributable, directly or indirectly, to some or all of the earlier lump sum through the payment of one or more * roll ‑ over superannuation benefits.

Amendment history: Inserted by No 9 of 2007, effective Schedule 1 (items 1, 2, 5–17, 24(1)), Schedule 2 (items 1, 2), Schedule 3, Schedule 5 (items 6–8, 36(1)) and Schedule 10: Royal Assent

s 310-1 — What this Division is about

This Division sets out special rules for certain merging superannuation funds. These rules relate to the transfer of losses, the treatment of CGT events related to the merger and the treatment of assets related to the merger. Note: This Division applies to mergers happening between 24 December 2008 and 30 June 2011 (or, in certain cases, 30 September 2011), or mergers happening on or after 1 October 2011 (see Part 3 of Schedule 2 to the Tax Laws Amendment (2009 Measures No. 6) Act 2010 ).

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 147 of 2011, effective s. 4, Schedule 1, Schedule 5 (items 1–9, 16–20), Schedule 6 (items 1, 6) and Schedule 9: Royal Assent Schedule 8 (items 2–9, 37, 38, 41): 1 Jan 2012 | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3) | Amended by No 23 of 2018, effective Sch 1 (items 12–19, 21–23, 60–62), Sch 2 (items 1, 2, 6) and Sch 5 (items 7–11, 26–28): 1 Apr 2018 (s 2(1) items 3, 5, 8, 10, 12) Sch 1 (items 75–79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 49 of 2020, effective Sch 1 (items 1–17, 21) and Sch 2 (items 1, 7): 1 July 2020 (s 2(1) item 1)

s 310-5 — Object

The main object of this Division is to facilitate the consolidation of the superannuation industry by allowing certain merging * superannuation funds to retain the value, for income tax purposes, of certain losses that might otherwise cease to be able to be utilised as a result of the merger.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13)

s 310-10 — Original fund’s assets extend beyond life insurance policies and units in pooled superannuation trusts

(1) A trustee of: (a) a * complying superannuation fund (other than a * self managed superannuation fund) (the transferring entity or the original fund ); or (b) a * complying approved deposit fund (the transferring entity or the original fund ); can choose to transfer losses if an * arrangement is made for which the conditions in this section are satisfied. Transferring entity’s assets include other assets (2) The first condition is satisfied if, just before the * arrangement was made, the transferring entity’s assets included assets other than: (a) a * complying superannuation life insurance policy; or (b) units in a * pooled superannuation trust. Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the transferring entity holds a complying superannuation life insurance policy or units in a pooled superannuation trust. Original fund’s members transfer to a continuing fund (3) The second condition is satisfied if, under the * arrangement: (a) the transferring entity ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) at a particular time (the completion time ); and (b) the individuals who cease to be members (within the meaning of that Act) of the transferring entity become members (within the meaning of that Act) of one or more * complying superannuation funds (the continuing funds ). Continuing funds will usually not be able to be small funds (4) The third condition is satisfied if either: (a) none of the continuing funds was a * small superannuation fund, and all existed, just before the * arrangement was made; or (b) the following subparagraphs apply: (i) only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made; (ii) under the arrangement, a * complying superannuation fund or * complying approved deposit fund, other than the original fund, ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ); (iii) under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund; (iv) either the other fund or the original fund was not a small superannuation fund just before the arrangement was made; (v) the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act). Ignore members who cannot transfer to a continuing fund (5) For the purposes of subsections (3) and (4), ignore an individual who remains a member of a * complying superannuation fund or * complying approved deposit fund because of circumstances beyond the control of the trustee of that fund.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-15 — Original fund’s assets include a complying superannuation life insurance policy

(1) A * life insurance company (the transferring entity ) can choose to transfer losses if an * arrangement is made for which the conditions in this section are satisfied. Original fund holds a complying superannuation life insurance policy (2) The first condition is satisfied if, just before the * arrangement was made, a * complying superannuation life insurance policy issued by the transferring entity was held by: (a) a * complying superannuation fund (the original fund ); or (b) a * complying approved deposit fund (the original fund ). Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the original fund holds other assets. Original fund’s members transfer to a continuing fund (3) The second condition is satisfied if, under the * arrangement: (a) the original fund ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) at a particular time (the completion time ); and (b) the individuals who cease to be members (within the meaning of that Act) of the original fund become members (within the meaning of that Act) of one or more * complying superannuation funds (the continuing funds ). Continuing funds will usually not be able to be small funds (4) The third condition is satisfied if either: (a) none of the continuing funds was a * small superannuation fund, and all existed, just before the * arrangement was made; or (b) the following subparagraphs apply: (i) only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made; (ii) under the arrangement, a * complying superannuation fund or * complying approved deposit fund, other than the original fund, ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ); (iii) under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund; (iv) either the other fund or the original fund was not a small superannuation fund just before the arrangement was made; (v) the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act). Ignore members who cannot transfer to a continuing fund (5) For the purposes of subsections (3) and (4), ignore an individual who remains a member of a * complying superannuation fund or * complying approved deposit fund because of circumstances beyond the control of the trustee of that fund.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-20 — Original fund’s assets include units in a pooled superannuation trust

(1) A trustee of a * pooled superannuation trust (the transferring entity ) can choose to transfer losses if an * arrangement is made for which the conditions in this section are satisfied. Units in the trust were held by the original fund (2) The first condition is satisfied if, just before the * arrangement was made, units in the transferring entity were held by: (a) a * complying superannuation fund (the original fund ); or (b) a * complying approved deposit fund (the original fund ). Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the original fund holds other assets. Original fund’s members transfer to a continuing fund (3) The second condition is satisfied if, under the * arrangement: (a) the original fund ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) at a particular time (the completion time ); and (b) the individuals who cease to be members (within the meaning of that Act) of the original fund become members (within the meaning of that Act) of one or more * complying superannuation funds (the continuing funds ). Continuing funds will usually not be able to be small funds (4) The third condition is satisfied if either: (a) none of the continuing funds was a * small superannuation fund, and all existed, just before the * arrangement was made; or (b) the following subparagraphs apply: (i) only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made; (ii) under the arrangement, a * complying superannuation fund or * complying approved deposit fund, other than the original fund, ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ); (iii) under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund; (iv) either the other fund or the original fund was not a small superannuation fund just before the arrangement was made; (v) the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act). Ignore members who cannot transfer to a continuing fund (5) For the purposes of subsections (3) and (4), ignore an individual who remains a member of a * complying superannuation fund or * complying approved deposit fund because of circumstances beyond the control of the trustee of that fund.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13)

s 310-25 — Who losses can be transferred to

An entity choosing under Subdivision 310 ‑ B to transfer losses can choose to transfer any or all of the transferring entity’s losses set out in section 310 ‑ 30, in whole or in part, to one or more of the following entities (a receiving entity ): (a) a continuing fund for the choice; (b) a * pooled superannuation trust in which units are held by a continuing fund for the choice just after the completion time; (c) a * life insurance company with which a * complying superannuation life insurance policy is held by a continuing fund for the choice just after the completion time.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-30 — Losses that can be transferred

(1) The transferring entity’s losses that can be transferred are: (a) any of its * net capital losses for income years earlier than the income year for the transferring entity that includes the completion time (the transfer year ), to the extent that it was not * utilised before the completion time (an earlier year net capital loss ); and (b) any net capital loss it would have made for the transfer year were the transfer year to have ended at the completion time (a transfer year net capital loss ); and (c) any of its * tax losses for income years earlier than the transfer year, to the extent that it was not utilised before the completion time (an earlier year tax loss ); and (d) any tax loss it would have incurred for the transfer year were the transfer year to have ended at the completion time (a transfer year tax loss ); worked out subject to the modifications set out in this section. Note: If the entity choosing to transfer losses also chooses an asset roll ‑ over under Subdivision 310 ‑ D for the same arrangement, none of the transfer events for the roll ‑ over will contribute towards a loss transferred under this Subdivision (see subsections 310 ‑ 55(1), 310 ‑ 60(3), 310 ‑ 65(1) and 310 ‑ 70(1)). (2) For a choice under section 310 ‑ 15 (life insurance companies), work out those losses by only considering the following to the extent that they relate to assets reasonably attributable to a * complying superannuation life insurance policy issued by the transferring entity and held by the original fund: (a) * capital gains from * complying superannuation assets; (b) * capital losses from complying superannuation assets; (c) assessable income covered by subsection 320 ‑ 137(2) (about complying superannuation assets); (d) deductions covered by subsection 320 ‑ 137(4) (about complying superannuation assets). (3) For a choice under section 310 ‑ 20 (pooled superannuation trusts), work out those losses by only considering * capital gains, * capital losses, assessable income and deductions to the extent that they relate to assets reasonably attributable to units in the transferring entity held by the original fund.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-35 — Effect of transferring a net capital loss

(1) To the extent that an earlier year net capital loss is transferred to a receiving entity: (a) the transferring entity is taken not to have made the loss for that earlier income year; and (b) an amount equal to the transferred amount is taken to be: (i) if the receiving entity is a * life insurance company—a * capital loss from * complying superannuation assets made by the receiving entity for the transfer year; and (ii) otherwise—a capital loss made by the receiving entity for the transfer year. (2) To the extent that a transfer year net capital loss is transferred to a receiving entity: (a) if the transferring entity is a * life insurance company—the sum of the transferring entity’s * capital losses from * complying superannuation assets for the transfer year is reduced by an amount equal to the transferred amount; and (b) if the transferring entity is not a life insurance company—the sum of the transferring entity’s capital losses for the transfer year is reduced by an amount equal to the transferred amount; and (c) if the receiving entity is a life insurance company—an amount equal to the transferred amount is taken to be a capital loss from complying superannuation assets made by the receiving entity for the transfer year; and (d) if the receiving entity is not a life insurance company—an amount equal to the transferred amount is taken to be a capital loss made by the receiving entity for the transfer year.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-40 — Effect of transferring a tax loss

(1) To the extent that an earlier year tax loss is transferred to a receiving entity: (a) the transferring entity is taken not to have incurred the loss for that earlier income year; and (b) for the purposes of section 36 ‑ 15, an amount equal to the transferred amount is taken to be: (i) if the receiving entity is a * life insurance company—a * tax loss of the * complying superannuation class incurred by the receiving entity for the income year immediately prior to the transfer year; and (ii) otherwise—a tax loss incurred by the receiving entity for the income year immediately prior to the transfer year; and (c) for all other purposes of this Act, an amount equal to the transferred amount is taken to be: (i) if the receiving entity is a life insurance company—a tax loss of the complying superannuation class incurred by the receiving entity for the transfer year; and (ii) otherwise—a tax loss incurred by the receiving entity for the transfer year. (2) To the extent that a transfer year tax loss is transferred to a receiving entity: (a) if the transferring entity is a * life insurance company—the sum of the transferring entity’s deductions covered by subsection 320 ‑ 137(4) (about complying superannuation assets) for the transfer year is reduced by an amount equal to the transferred amount; and (b) if the transferring entity is not a life insurance company—the sum of the transferring entity’s deductions for the transfer year is reduced by an amount equal to the transferred amount; and (c) if the receiving entity is a life insurance company—an amount equal to the transferred amount is taken to be a * tax loss of the * complying superannuation class incurred by the receiving entity for the transfer year; and (d) if the receiving entity is not a life insurance company—an amount equal to the transferred amount is taken to be a tax loss incurred by the receiving entity for the transfer year.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-45 — Choosing the assets roll ‑ over

(1) An entity can choose a roll ‑ over under this Subdivision if: (a) the entity makes or could make a choice under Subdivision 310 ‑ B (the losses choice ) to transfer the losses of an entity (the transferring entity ); and (b) the conditions in this section are satisfied for the * arrangement to which the losses choice relates. (2) The first condition is that, under the * arrangement, one or more * CGT events (the transfer events ) happen in relation to the following assets (the original assets ) of the transferring entity with the result that it ceases to own those assets: (a) for a losses choice under section 310 ‑ 10 (original funds)—all of its * CGT assets; (b) for a losses choice under section 310 ‑ 15 (life insurance companies)—all of its CGT assets reasonably attributable to the * complying superannuation life insurance policy held by the original fund for the losses choice just before the arrangement was made; (c) for a losses choice under section 310 ‑ 20 (pooled superannuation trusts)—all of its CGT assets reasonably attributable to the units in that entity held by the original fund for the losses choice just before the arrangement was made. (3) The second condition is that the transfer events all happen in the income year (the transfer year ) for the transferring entity that includes the completion time for the losses choice. (4) The third condition is that, for each transfer event, an asset (the received asset ) becomes an asset of one of the following (the receiving entity ) as a result of the event: (a) a continuing fund for the losses choice; (b) a * pooled superannuation trust in which units are held by a continuing fund for the losses choice just after the completion time; (c) a * life insurance company with which a * complying superannuation life insurance policy is held by a continuing fund for the losses choice just after the completion time. (5) For the purposes of subsection (2), ignore any * CGT assets retained by the transferring entity: (a) to pay its existing or expected debts relating to the * arrangement; or (b) to meet its liabilities relating to individuals who have remained members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) of the original fund because of circumstances beyond the control of the trustee of that fund.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 310-50 — Choosing the form of the assets roll ‑ over

(1) An entity that chooses a roll ‑ over under this Subdivision must choose the form of the roll ‑ over that applies to each of the following: (a) the original assets that are not * revenue assets; (b) the original assets that are revenue assets. (2) In respect of original assets that are not * revenue assets, the entity choosing the roll ‑ over must choose either section 310 ‑ 55 (global asset approach) or 310 ‑ 60 (individual asset approach) to apply to the original assets and the corresponding received assets. (3) In respect of original assets that are * revenue assets, the entity choosing the roll ‑ over must choose either section 310 ‑ 65 (global asset approach) or 310 ‑ 70 (individual asset approach) to apply to the original assets and the corresponding received assets. Note: The entity choosing the form of the roll ‑ over may choose different forms of roll ‑ over for its CGT assets and revenue assets.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Repealed and substituted by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3)

s 310-55 — CGT assets—if global asset approach chosen

Consequences for transferring entity (1) For each of the original assets to which this section applies, the transferring entity’s * capital proceeds from the relevant transfer event are taken to be an amount equal to: (a) if, apart from this subsection, the event would result in a * capital gain—the asset’s * cost base just before the event; or (b) if, apart from this subsection, the event would result in a * capital loss—the asset’s * reduced cost base just before the event. Note: This section only applies if it is chosen to apply under subsection 310 ‑ 50(2). Consequences for receiving entity (2) For each of the received assets to which this section applies, the first element of the * cost base of the asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the corresponding original asset just before the relevant transfer event. (3) For each of the received assets to which this section applies, the first element of the * reduced cost base of the asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the corresponding original asset just before the relevant transfer event.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3)

s 310-60 — CGT assets—individual asset approach

Consequences for transferring entity (1) The transferring entity may disregard any * capital gain or * capital loss for a transfer event relating to an original asset to which this section applies. Note: This section only applies if it is chosen to apply under subsection 310 ‑ 50(2). (2) Subsections (3), (4) and (5) apply if under subsection (1) the transferring entity disregards a * capital gain or * capital loss for a transfer event relating to an original asset. (3) The transferring entity’s * capital proceeds from the transfer event are taken to be an amount equal to: (a) if, apart from this subsection, the event would result in a * capital gain—the asset’s * cost base just before the event; or (b) if, apart from this subsection, the event would result in a * capital loss—the asset’s * reduced cost base just before the event. Consequences for receiving entity (4) The first element of the * cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the original asset just before the event. (5) The first element of the * reduced cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the original asset just before the event.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3)

s 310-65 — Revenue assets—if global asset approach chosen

Consequences for transferring entity (1) For each of the original assets to which this section applies, the transferring entity’s gross proceeds for the relevant transfer event are taken to be the amount (the deemed proceeds ) the transferring entity would need to have received in order to have a nil profit and nil loss for the event. Note: This section only applies if it is chosen to apply under subsection 310 ‑ 50(3). Consequences for receiving entity (2) For each of the received assets to which this section applies, the receiving entity is taken, for the purposes of this Act, to have paid an amount for that asset at the time of the transfer event that is equal to the deemed proceeds for the corresponding original asset.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3)

s 310-70 — Revenue assets—individual asset approach

Consequences for transferring entity (1) If the transferring entity derives assessable income (other than a * capital gain) or incurs a * tax loss for a transfer event relating to an original asset to which this section applies, the entity choosing the roll ‑ over can choose for the transferring entity’s gross proceeds for the event to be taken to be the amount (the deemed proceeds ) the transferring entity would need to have received in order to have a nil profit and nil loss for the event. Note: This section only applies if it is chosen to apply under subsection 310 ‑ 50(3). Consequences for receiving entity (2) If a choice is made under subsection (1), the receiving entity is taken to have paid an amount for the corresponding received asset at the time of the transfer event that is equal to the deemed proceeds for the event.

Amendment history: Inserted by No 19 of 2010, effective Sch 1 (items 1–13, 16–20), Sch 3 (items 11, 12), Sch 4 (items 3–6) and Sch 5 (item 6): 24 Mar 2010 (s 2(1) items 2, 9, 11, 14) Sch 2 (items 1–11): 25 Mar 2010 (s 2(1) item 3) Sch 2 (items 12–26):repealed before commencing (s 2(1) item 4) Sch 3 (items 1, 2): 30 June 2000 (s 2(1) item 5) Sch 3 (items 4–8): 15 Mar 2007 (s 2(1) item 7) Sch 4 (items 1, 2): 4 June 2009 (s 2(1) item 10) Sch 5 (items 2, 3): 25 Feb 2009 (s 2(1) item 12) Sch 5 (items 4, 5): 1 July 2011 (s 2(1) item 13) | Amended by No 158 of 2012, effective Sch 1 (items 1, 2, 19): 28 Nov 2012 (s 2(1) items 2, 4) Sch 1 (items 5–18): 1 Oct 2011 (s 2(1) item 3)