Income Tax Assessment Act 1997

s 293-150 — Low tax contributions — modification for CPFs

(1) This section applies for the purpose of working out under section 293 ‑ 25 or 293 ‑ 105 the amount of the individual’s * low tax contributions for the * financial year corresponding to the income year. Modified low tax contributed amounts in CPFs (2) Despite section 293 ‑ 30, the low tax contributed amounts covered by that section for the * financial year do not include any contributions to a * constitutionally protected fund, other than contributions covered by section 293 ‑ 160 (about salary packaged contributions). Modified defined benefit contributions in CPFs (3) Despite section 293 ‑ 115, the individual’s defined benefit contributions for the * financial year in respect of a * defined benefit interest in a * constitutionally protected fund are equal to: (a) unless paragraph (b) applies—nil; or (b) if, having regard to subsection (2) of this section, the low tax contributed amounts covered by section 293 ‑ 30 for the year include contributions in respect of the defined benefit interest—the amount of those contributions.

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)

s 293-155 — High income threshold—effect of modification

(1) For the purpose of working out the extent (if any) to which the sum mentioned in subsection 293 ‑ 20(1) for the individual exceeds the $250,000 threshold mentioned in that subsection, disregard section 293 ‑ 150. (2) To avoid doubt, the effect of subsection (1) is that the amount of the individual’s * taxable contributions for an income year is the lesser of: (a) the excess (if any) mentioned in subsection 293 ‑ 20(1) (worked out disregarding section 293 ‑ 150) for the income year; and (b) the individual’s * low tax contributions for the corresponding * financial year (worked out having regard to section 293 ‑ 150).

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)

s 293-160 — Salary packaged contributions

(1) A contribution made to a * complying superannuation plan in respect of an individual is covered by this section if it is made because the individual agreed with an entity, or an * associate of an entity: (a) for the contribution to be made; and (b) in return, for the * withholding payments covered by subsection (2) that are to be made to the individual by the entity to be reduced (including to nil). (2) This subsection covers a * withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table. Withholding payments covered Item Provision Subject matter 1 Section 12 ‑ 35 Payment to employee 2 Section 12 ‑ 40 Payment to company director 3 Section 12 ‑ 45 Payment to office holder 4 Section 12 ‑ 55 Voluntary agreement to withhold 5 Section 12 ‑ 60 Payment under labour hire arrangement, or specified by regulations

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)

s 293-185 — What this Subdivision is about

Division 293 tax is not payable by Commonwealth justices and judges in respect of contributions to a defined benefit interest established under the Judges’ Pensions Act 1968 . Table of sections Operative provisions 293 ‑ 190 Who this Subdivision applies to 293 ‑ 195 Defined benefit contributions — modified treatment of contributions under the Judges’ Pensions Act 1968 293 ‑ 200 High income threshold—effect of modification

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)

s 293-190 — Who this Subdivision applies to

(1) This Subdivision applies to an individual if the individual is a Justice of the High Court, or a justice or judge of a court created by the Parliament, at any time on or after the start of the individual’s 2012 ‑ 13 income year. (2) Nothing in this Subdivision limits section 6 of the Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013 . Note: Section 6 of the Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013 provides that Division 293 tax is not imposed in relation to a person if the imposition would exceed the legislative power of the Commonwealth.

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)

s 293-195 — Defined benefit contributions— modified treatment of contributions under the Judges’ Pensions Act 1968

(1) This section applies for the purpose of working out under section 293 ‑ 105 the amount of the individual’s * low tax contributions for any * financial year. (2) Despite section 293 ‑ 115 and subsection 293 ‑ 150(3), the individual’s defined benefit contributions for a * financial year for a * defined benefit interest in a * superannuation fund established under the Judges’ Pensions Act 1968 are nil.

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)

s 293-200 — High income threshold—effect of modification

(1) For the purpose of working out the extent (if any) to which the sum mentioned in subsection 293 ‑ 20(1) for the individual exceeds the $250,000 threshold mentioned in that subsection, disregard section 293 ‑ 195. (2) To avoid doubt, the effect of subsection (1) is that the amount of the individual’s * taxable contributions for an income year is the lesser of: (a) the excess (if any) mentioned in subsection 293 ‑ 20(1) (worked out disregarding section 293 ‑ 195) for the income year; and (b) the individual’s * low tax contributions for the corresponding * financial year (worked out having regard to section 293 ‑ 195).

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)

s 293-225 — What this Subdivision is about

If you receive a departing Australia superannuation payment, you are entitled to a refund of any Division 293 tax you have paid. Table of sections Operative provisions 293 ‑ 230 Who is entitled to a refund 293 ‑ 235 Amount of the refund 293 ‑ 240 Entitlement to refund stops all Division 293 tax liabilities

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)

s 293-230 — 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 293 tax; (ii) a voluntary payment made under section 133 ‑ 70 in Schedule 1 to the Taxation Administration Act 1953 for the purpose of reducing the amount by which a debt account for a * superannuation interest is in debit; (iii) * 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 82 of 2013, effective Sch 1 (item 1) and Sch 3 (items 1, 6–11, 39): 28 June 2013 (s 2)

s 293-235 — Amount of the refund

(1) The amount of the refund to which you are entitled is the sum of the payments mentioned in paragraph 293 ‑ 230(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 293 tax attributable to period when you are an Australian resident (3) Despite subsection (1), if: (a) at any time in your 2012 ‑ 13 income year, or a later income year, you are an Australian resident (but not a * temporary resident); and (b) a payment mentioned in paragraph 293 ‑ 230(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 82 of 2013, effective Sch 1 (item 1) and Sch 3 (items 1, 6–11, 39): 28 June 2013 (s 2)

s 293-240 — Entitlement to refund stops all Division 293 tax liabilities

(1) The Commissioner may decide to release you from any existing or future liability to pay * Division 293 tax or * debt account discharge liability if: (a) you become entitled to a refund under section 293 ‑ 230; or (b) you would become entitled to such a refund, if you were to pay the liability and paragraph 293 ‑ 230(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 82 of 2013, effective Sch 1 (item 1) and Sch 3 (items 1, 6–11, 39): 28 June 2013 (s 2)

s 293-245 — What this Subdivision is about

This Division has effect despite subsection 73(3A) of the Australian Capital Territory (Self ‑ Government) Act 1988 . Table of sections Operative provisions 293 ‑ 250 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 293-250 — 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 294-1 — What this Division is about

There is a cap on the total amount you can transfer into the retirement phase of superannuation (where earnings are exempt from taxation). Credits are added to a transfer balance account when you transfer amounts. If the balance in your account exceeds the cap, you will be required to remove the excess from the retirement phase, and you will be liable to pay excess transfer balance tax. Note: Division 136 in Schedule 1 to the Taxation Administration Act 1953 contains rules about excess transfer balance determinations and commutation authorities.

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 294-5 — Object of this Division

The object of this Division is to limit the total amount of an individual’s * superannuation income streams that receive an earnings tax exemption.

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 294-10 — What this Subdivision is about

This Subdivision creates a transfer balance account for you, and credits it, if you have a superannuation income stream in the retirement phase. It also provides for a transfer balance cap and identifies when you have excess transfer balance. Table of sections Operative provisions 294 ‑ 15 When you have a transfer balance account 294 ‑ 20 Meaning of retirement phase recipient 294 ‑ 25 Transfer balance credits 294 ‑ 30 Excess transfer balance 294 ‑ 35 Your transfer balance cap 294 ‑ 40 Proportionally indexed transfer balance cap 294 ‑ 45 Transfer balance account ends 294 ‑ 50 Assumptions about income streams 294 ‑ 55 Repayment of limited recourse borrowing arrangement

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 294-15 — When you have a transfer balance account

(1) You have a transfer balance account if you are, or have at any time been, the * retirement phase recipient of a * superannuation income stream. (2) You start to have the * transfer balance account on the later of: (a) 1 July 2017; and (b) the day you first start to be a * retirement phase recipient of a * superannuation 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 294-20 — Meaning of retirement phase recipient

(1) You are the retirement phase recipient of a * superannuation income stream at a time if: (a) the superannuation income stream is in the * retirement phase at that time; and (b) a * superannuation income stream benefit from the superannuation income stream is payable to you at that time. (2) You are also the retirement phase recipient of a * superannuation income stream at a time if: (a) the superannuation income stream is in the * retirement phase at that time; and (b) the superannuation income stream is a * deferred superannuation income stream; and (c) a * superannuation income stream benefit from the superannuation income stream will be payable to you after 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 294-25 — Transfer balance credits

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

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 294-30 — Excess transfer balance

(1) You have excess transfer balance at a particular time if, at that time, the * transfer balance in your * transfer balance account exceeds your * transfer balance cap at that time. The amount of the excess transfer balance is the amount of the excess. Note: There is a modification for certain capped defined benefit income streams: see Subdivision 294 ‑ D. (2) The transfer balance in your * transfer balance account at a time equals: (a) the sum of the * transfer balance credits in the account at that time; less (b) the sum of the * transfer balance debits (if any) in the account at that time. Note 1: For transfer balance debits , see Subdivision 294 ‑ C. Note 2: There is no consequence for having a negative transfer balance.

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 294-35 — Your transfer balance cap

(1) Your transfer balance cap for the * financial year in which you first start to have a * transfer balance account is equal to the * general transfer balance cap for that financial year. Note: The amount of the transfer balance cap is modified for child recipients: see Subdivision 294 ‑ E. (2) Your transfer balance cap for a later * financial year is equal to your transfer balance cap for the previous year, subject to section 294 ‑ 40 (which is about proportional indexation). (3) The general transfer balance cap is: (a) for the 2017 ‑ 2018 * financial year—$1,600,000; or (b) for the 2018 ‑ 2019 financial year or a later financial year—the amount worked out by indexing annually the amount mentioned in paragraph (a). Note: Subdivision 960 ‑ M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap: see section 960 ‑ 285.

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 294-40 — Proportionally indexed transfer balance cap

(1) This section applies to increase your transfer balance cap for a * financial year (other than the financial year in which you first start to have a * transfer balance account) if: (a) the * general transfer balance cap is increased as a result of indexation for the financial year; and (b) at no time before the start of that financial year has the * transfer balance in your transfer balance account at the end of a day exceeded your transfer balance cap. (2) Your transfer balance cap is increased for the * financial year by the amount worked out using the following formula: where: indexation increase means the amount by which the * general transfer balance cap for the * financial year increased as a result of indexation. unused cap percentage is worked out by: (a) identifying the highest * transfer balance in your * transfer balance account at the end of any day up to the end of the previous * financial year; and (b) identifying the day on which the transfer balance account had that transfer balance at the end of the day, or, if your transfer balance account had that transfer balance at the end of more than one day, the earliest of those days; and (c) expressing the transfer balance identified in paragraph (a) as a percentage (rounded down to the nearest whole number) of your * transfer balance cap on the day identified in paragraph (b); and (d) subtracting the result of paragraph (c) from 100%. (3) However, if the highest * transfer balance mentioned in paragraph (a) of the definition of unused cap percentage in subsection (2) is less than nil, that unused cap percentage is taken to be 100%.

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 294-45 — Transfer balance account ends

The * transfer balance account ceases when the * retirement phase recipient dies.

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 294-50 — Assumptions about income streams

(1) Subsections (2) and (3) apply for the purposes of working out the following matters at a time: (a) whether you have a * transfer balance account; (b) the * transfer balance in your transfer balance account. (2) In working out whether there is a superannuation income stream at a time: (a) have regard only to facts and circumstances that exist at that time; and (b) assume a requirement will be met, to the extent (if any) that: (i) the requirement arises under a provision of the * taxation law or under any rules or standards under which a benefit is, or is purported to be, provided; and (ii) meeting the requirement is a condition for there to be a superannuation income stream at that time; and (iii) it is not possible to determine, having regard only to facts and circumstances that exist at that time, whether or not the requirement has been met. (3) In working out whether a * superannuation income stream is in the retirement phase at a time, disregard the operation of subsection 307 ‑ 80(4), if the time is before the end of the 60 ‑ day period mentioned in paragraph (c) of that subsection.

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) | Repealed and substituted by No 55 of 2017, effective Sch 1 (items 1–15, 32): 1 July 2017 (s 2(1) items 2, 7)

s 294-55 — Repayment of limited recourse borrowing arrangement

(1) A * transfer balance credit arises in your * transfer balance account if: (a) a * superannuation provider makes a payment in respect of 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) as a result, there is an increase in the * value of a * superannuation interest that supports a * superannuation income stream of which you are the * retirement phase recipient; and (c) the superannuation interest is in a * small superannuation fund at the time of the payment. (2) The amount of the credit is the amount of the increase in * value. (3) The credit arises at the time of the payment.

Amendment history: Inserted by No 55 of 2017, effective Sch 1 (items 1–15, 32): 1 July 2017 (s 2(1) items 2, 7) | Amended by No 47 of 2021, effective Sch 1 (items 4–9): 1 July 2021 (s 2(1) item 1)

s 294-75 — What this Subdivision is about

A debit arises in your transfer balance account when superannuation income streams that were previously credited (because they receive the earnings tax exemption) are reduced (other than by draw ‑ downs or investment losses) or lose the earnings tax exemption. A debit also arises in your transfer balance account when you make a contribution relating to a structured settlement or personal injury, or where certain events occur that result in you having reduced superannuation. Table of sections Operative provisions 294 ‑ 80 Transfer balance debits 294 ‑ 85 Certain events that result in reduced superannuation 294 ‑ 90 Payment splits 294 ‑ 95 Payment splits—no double debiting

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 294-80 — Transfer balance debits

(1) The following table sets out when a debit arises in your * transfer balance account and the amount of the debit. The debit is called a transfer balance debit . Debits in the transfer balance account Item If: A debit of: Arises: 1 you receive a * superannuation lump sum because a * superannuation income stream of which you are a * retirement phase recipient is commuted, in full or in part the amount of the superannuation lump sum at the time you receive the superannuation lump sum 2 a * structured settlement contribution is made in respect of you the amount of the contribution at the later of: (a) the time the contribution is made; and (b) the start of the day you first start to have a * transfer balance account 3 a * transfer balance debit arises under section 294 ‑ 85 because of an event that results in reduced superannuation the amount of the debit specified in section 294 ‑ 85 at the time provided by section 294 ‑ 85 4 a * transfer balance debit arises under section 294 ‑ 90 because of a * payment split the amount of the debit specified in section 294 ‑ 90 at the time provided by section 294 ‑ 90 5 a * superannuation income stream of which you are a * retirement phase recipient stops being in the * retirement phase under subsection 307 ‑ 80(4) the * value of the * superannuation interest that supports the superannuation income stream at the end of the period within which the commutation authority mentioned in that subsection was required to be complied with at the end of the period within which the commutation authority mentioned in that subsection was required to be complied with 6 a * superannuation income stream of which you were a * retirement phase recipient stops being a superannuation income stream that is in the * retirement phase at a time (the stop time ), but items 1 and 5 do not apply the * value of the * superannuation interest that supported the superannuation income stream just before the stop time at the stop time 7 the Commissioner gives you a notice under section 136 ‑ 70 in Schedule 1 to the Taxation Administration Act 1953 (about non ‑ commutable excess transfer balance) the amount of the * excess transfer balance stated in the notice at the time the Commissioner issues the notice 8 a * transfer balance debit arises under regulations made for the purposes of this item the amount of the debit worked out in accordance with the regulations at the time specified in the regulations Structured settlement contributions (2) Each of the following is a structured settlement contribution in respect of you: (a) a contribution to a * complying superannuation plan in respect of you that is covered under section 292 ‑ 95 (about structured settlements or orders for personal injuries); (b) a contribution to a complying superannuation plan in respect of you that would be covered under section 292 ‑ 95 if: (i) the section applied to contributions made before 10 May 2006; and (ii) paragraphs 292 ‑ 95(1)(b) and (d) were disregarded. Regulations may provide for exceptions (3) The regulations may provide that an item of the table in subsection (1) does not apply to a class of * superannuation income streams specified in the regulations.

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 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 294-85 — Certain events that result in reduced superannuation

(1) A * transfer balance debit arises in your * transfer balance account if: (a) subsection (2) or (5) provides that the debit arises; and (b) you notify the Commissioner in the * approved form that the debit has arisen. Fraud or dishonesty (2) A debit arises if: (a) a loss is suffered by a * superannuation income stream provider; and (b) as a result, the * value of the * superannuation interest that supports a * superannuation income stream of which you are the * retirement phase recipient is reduced; and (c) the loss is a result of fraud or dishonesty; and (d) an individual has been convicted of an offence involving that fraud or dishonesty. (3) The amount of the debit equals the amount by which the * value of the * superannuation interest is reduced as a result of the loss . (4) The debit arises at the time of the loss. Payments under section 139ZQ of the Bankruptcy Act 1966 (5) A debit arises if: (a) an amount is paid in compliance with a notice given under section 139ZQ of the Bankruptcy Act 1966 ; and (b) as a result, the * value of a * superannuation interest that supports a * superannuation income stream of which you are the * retirement phase recipient is reduced. (6) The amount of the debit is the amount paid to the trustee in bankruptcy. (7) The debit arises at the time of the payment.

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 294-90 — Payment splits

(1) A * transfer balance debit arises in your * transfer balance account if: (a) subsection (2) provides that the debit arises; and (b) the Commissioner is notified in the * approved form that the debit has arisen. Payment splits (2) A debit arises if: (a) a * superannuation interest is subject to a * payment split but remains an interest of the * member spouse; and (b) the superannuation interest supports a * superannuation income stream that is in the * retirement phase; and (c) as a result of the payment split, a proportion of all * superannuation income stream benefits from the income stream is to be paid to a * non ‑ member spouse; and (d) as a result, the member spouse and the non ‑ member spouse are both * retirement phase recipients of the superannuation income stream. (3) The amount of the debit is: (a) if you are the * member spouse—the proportion mentioned in paragraph (2)(c); and (b) if you are the * non ‑ member spouse—the remaining proportion; of the * value, on the day the debit arises, of the * superannuation interest that supports the * superannuation income stream affected by the * payment split. (4) The debit arises at the later of: (a) the operative time (within the meaning of Part VIIIB or VIIIC (as the case may be) of the Family Law Act 1975 ) for the * payment split; and (b) at the start of the day you first start to have a * transfer balance account.

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 112 of 2020, effective Sch 3 (items 39–47): 28 Sept 2022 (s 2(1) item 1)

s 294-95 — Payment splits—no double debiting

If a * transfer balance debit, worked out by reference to a particular proportion, arises in your * transfer balance account because a * superannuation interest is subject to a * payment split, each of the following debits arising in your account at a later time in respect of the same interest is to be reduced by the same proportion: (a) a debit that arises under item 1 of the table in subsection 294 ‑ 80(1) (about commutations), but only if the commuted income stream is a * capped defined benefit income stream; (b) a debit that arises under item 3 of that table (about events that result in reduced superannuation); (c) a debit that arises under item 5 or 6 of that table (about income streams that stop being in the retirement phase).

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 294-120 — What this Subdivision is about

Certain defined benefit lifetime pensions that are subject to commutation restrictions cannot result in excess transfer balance (instead, Subdivision 303 ‑ A applies to the superannuation income stream benefits). Certain commutation ‑ restricted income streams started before 1 July 2017 are covered by the same modification. Table of sections Operative provisions 294 ‑ 125 When this Subdivision applies 294 ‑ 130 Meaning of capped defined benefit income stream 294 ‑ 135 Transfer balance credit—special rule for capped defined benefit income streams 294 ‑ 140 Excess transfer balance—special rule for capped defined benefit income streams 294 ‑ 145 Transfer balance debits—special rules for capped defined benefit income streams

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 294-125 — When this Subdivision applies

This Subdivision applies to you if you are the * retirement phase recipient of 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 294-130 — Meaning of capped defined benefit income stream

(1) A * superannuation income stream is a capped defined benefit income stream if it is: (a) covered by an item of the following table; and (b) if it is covered by any of items 2 to 7 of that table—it is in the * retirement phase just before 1 July 2017. Capped defined benefit income streams Item Topic A superannuation income stream is covered if: 1 Lifetime pension it is a pension for the purposes of the Superannuation Industry (Supervision) Act 1993 (the SIS Act ) that is provided under rules that meet the standards of subregulation 1.06(2) of the Superannuation Industry (Supervision) Regulations 1994 (the SIS Regulations ) 2 Lifetime annuity it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(2) of the SIS Regulations 3 Life expectancy pension it is a pension for the purposes of the SIS Act that is provided under rules that meet the standards of subregulation 1.06(7) of the SIS Regulations 4 Life expectancy annuity it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(9) of the SIS Regulations 5 Market linked pension it is a pension for the purposes of the SIS Act that is provided under rules that meet the standards of subregulation 1.06(8) of the SIS Regulations 6 Market linked annuity it is an annuity for the purposes of the SIS Act that is provided under a contract that meets the standards of subregulation 1.05(10) of the SIS Regulations 7 Market linked pension (RSA) it is a pension for the purposes of the Retirement Savings Accounts Act 1997 that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the Retirement Savings Accounts Regulations 1997 (2) A * superannuation income stream is also a capped defined benefit income stream if the income stream is prescribed by the regulations for the purposes of this subsection.

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 294-135 — Transfer balance credit—special rule for capped defined benefit income streams

(1) Section 294 ‑ 25 applies in relation to a * capped defined benefit income stream as if a reference in that section to the * value of a * superannuation interest were a reference to the * special value of the superannuation interest. Meaning of special value—lifetime products (2) The special value , at a particular time, of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294 ‑ 130(1), is the amount worked out using the formula: where: annual entitlement is worked out by: (a) dividing the amount of the first * superannuation income stream benefit you are entitled to receive from the income stream just after that time by the number of whole days to which that benefit relates; and (b) multiplying the result by 365. Meaning of special value—life expectancy and market linked products (3) The special value , at a particular time, of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294 ‑ 130(1), is the amount worked out using the formula: where: annual entitlement has the same meaning as in subsection (2) of this section. remaining term means the number of years remaining at that time in the period throughout which * superannuation income stream benefits are payable under the income stream, rounded up to the next whole number. Regulations (4) The regulations may specify a method for determining the special value of a * superannuation interest that supports a * superannuation income stream prescribed by regulations made for the purposes of subsection 294 ‑ 130(2).

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 294-140 — Excess transfer balance—special rule for capped defined benefit income streams

(1) Despite section 294 ‑ 30, you have excess transfer balance at a particular time if, at that time, the * transfer balance in your * transfer balance account: (a) exceeds your * transfer balance cap at that time; and (b) exceeds your capped defined benefit balance from subsection (3) of this section at that time. (2) The amount of the excess transfer balance is the lesser of the 2 excesses. Note: For modifications of the tax treatment of benefits paid from capped defined benefit income streams, see Subdivision 303 ‑ A. Your capped defined benefit balance (3) You have an amount under this subsection (a capped defined benefit balance ) at a time equal to: (a) the sum of the * transfer balance credits in your * transfer balance account at that time in respect of * capped defined benefit income streams; less (b) the sum of the * transfer balance debits (if any) in your transfer balance account at that time in respect of capped defined benefit income streams.

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 294-145 — Transfer balance debits—special rules for capped defined benefit income streams

Debit for commutation (1) Item 1 of the table in subsection 294 ‑ 80(1) applies in relation to a * capped defined benefit income stream as if the reference in column 2 of that item to the amount of the * superannuation lump sum were a reference to: (a) in a case where the commutation mentioned in column 1 of that item is a commutation in full—the * debit value, just before the commutation takes place, of the * superannuation interest that supports the capped defined benefit income stream; or (b) in a case where that commutation is a commutation in part: (i) if the capped defined benefit income stream is, or was at any time, covered by item 1 or 2 of the table in subsection 294 ‑ 130(1)—the debit value mentioned in paragraph (a), multiplied by the fraction mentioned in subsection (1A); or (ii) if the capped defined benefit income stream is, or was at any time, covered by any of items 3 to 7 of the table in subsection 294 ‑ 130(1)—the amount mentioned in subsection (1B). (1A) For the purposes of subparagraph (1)(b)(i), the fraction is: where: SV just after commutation means the * special value, just after the commutation takes place, of the * superannuation interest that supports the * capped defined benefit income stream. SV just before commutation means the * special value, just before the commutation takes place, of the * superannuation interest that supports the * capped defined benefit income stream. (1B) For the purposes of subparagraph (1)(b)(ii), the amount is the lesser of the following: (a) the * debit value mentioned in paragraph (1)(a); (b) the amount (disregarding this section) of the * superannuation lump sum you received because of the commutation (as mentioned in item 1 of the table in subsection 294 ‑ 80(1)). Debit for events that result in reduced superannuation (2) Item 3 of the table in subsection 294 ‑ 80(1) (about events that result in reduced superannuation) applies in relation to a * capped defined benefit income stream as if the amount of the debit provided for in section 294 ‑ 85 was the * debit value, just before the loss or payment reduces the * value of the * superannuation interest that supports the capped defined benefit income stream, multiplied by the amount worked out using the following formula: where: SV just after event means the * special value, worked out just after the loss or payment reduces the * value of the * superannuation interest that supports the * capped defined benefit income stream. SV just before event means the * special value, worked out just before the loss or payment reduces the * value of the * superannuation interest that supports the * capped defined benefit income stream. Debit for payment split (3) Item 4 of the table in subsection 294 ‑ 80(1) (about a debit for a payment split) applies in relation to a * capped defined benefit income stream as if the reference in section 294 ‑ 90 to the * value of the * superannuation interest were a reference to the * debit value of the superannuation interest. Debits for loss of earnings exemption (4) Items 5 and 6 of the table in subsection 294 ‑ 80(1) apply in relation to an income stream that is, or was, a * capped defined benefit income stream as if the reference in the item to the * value of a * superannuation interest were a reference to the * debit value of the superannuation interest. Meaning of debit value (5) The debit value , at a particular time, of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream covered by item 1 or 2 of the table in subsection 294 ‑ 130(1), is: (a) the amount of the * transfer balance credit that arose in your * transfer balance account in respect of the income stream; less (b) the amount of any * transfer balance debits (apart from debits arising under item 4 of the table in subsection 294 ‑ 80(1)) that have arisen in your transfer balance account in respect of the income stream before that time. (6) The debit value , at a particular time, of a * superannuation interest that supports an income stream that is, or was at any time, a * capped defined benefit income stream covered by any of items 3 to 7 of the table in subsection 294 ‑ 130(1) is: (a) the amount of the * transfer balance credit that arose in your * transfer balance account in respect of the income stream; less (b) the sum of the following: (i) the amount of any * transfer balance debits (apart from debits arising under item 4 of the table in subsection 294 ‑ 80(1)) that have arisen in your transfer balance account in respect of the income stream before that time; (ii) if item 1 of the table in subsection 294 ‑ 80(1) applies in relation to the income stream because the income stream is commuted—the amount worked out under subsection (6A). (6A) The amount is the sum of the following: (a) the total amount of * superannuation income stream benefits that you were entitled to receive from the income stream before the start of the financial year in which the commutation takes place; (b) if regulation 1.07B of the Superannuation Industry (Supervision) Regulations 1994 applies to the income stream—the greater of the following: (i) the minimum amount under subregulation 1.07B(4) of those regulations for the income stream for that financial year; (ii) the total amount of superannuation income stream benefits that you received from the income stream in that financial year (other than superannuation income stream benefits that you were entitled to receive from the income stream before the start of that financial year); (c) if regulation 1.07C of the Superannuation Industry (Supervision) Regulations 1994 applies to the income stream—the greater of the following: (i) the minimum amount under subregulation 1.07C(3) of those regulations for the income stream for that financial year; (ii) the total amount of superannuation income stream benefits that you received from the income stream in that financial year (other than superannuation income stream benefits that you were entitled to receive from the income stream before the start of that financial year); (d) if regulation 1.08 of the Retirement Savings Accounts Regulations 1997 applies to the income stream—the greater of the following: (i) the minimum amount under regulation 1.08 of those regulations for the income stream for that financial year; (ii) the total amount of superannuation income stream benefits that you received from the income stream in that financial year (other than superannuation income stream benefits that you were entitled to receive from the income stream before the start of that financial year). Regulations (7) The regulations may specify a method for determining the debit value of a * superannuation interest that supports a * superannuation income stream prescribed by regulations made for the purposes of subsection 294 ‑ 130(2).

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 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 294-170 — What this Subdivision is about

If you are a death benefits dependant, and a child, you are not required to use your retirement transfer balance cap to receive a death benefits income stream. However, there is a cap on the total amount of your death benefits income streams that receives the earnings tax exemption. This cap is based on the deceased’s superannuation interests in the retirement phase, or, if the deceased did not have any superannuation interests in the retirement phase, on the transfer balance cap. Table of sections Operative provisions 294 ‑ 175 When this Subdivision applies 294 ‑ 180 Transfer balance account ends 294 ‑ 185 Transfer balance cap—special rule for child recipient 294 ‑ 190 Cap increment—child recipient just before 1 July 2017 294 ‑ 195 Cap increment—child recipient on or after 1 July 2017, deceased had no transfer balance account 294 ‑ 200 Cap increment—child recipient on or after 1 July 2017, deceased had transfer balance account

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 294-175 — When this Subdivision applies

(1) This Subdivision applies to you if you are a * child recipient of a * superannuation income stream. (2) You are a child recipient of a * superannuation income stream if: (a) because of the death of a person, you are a * retirement phase recipient of the superannuation income stream; and (b) you are a * child, and a * death benefits dependant, of the deceased; and (c) you are covered by paragraph 6.21(2A)(b) of the Superannuation Industry (Supervision) Regulations 1994 or paragraph 4.24(3A)(b) of the Retirement Savings Accounts Regulations 1997 (which are about children who are under age 18, or under age 25 and financially dependent or who have a disability).

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 294-180 — Transfer balance account ends

(1) Despite sections 294 ‑ 15 and 294 ‑ 45, your * transfer balance account ceases at a time if: (a) just before that time, you were a * child recipient of one or more * superannuation income streams; and (b) just after that time, you are no longer a child recipient of any superannuation income stream; and (c) no * transfer balance credits arose in the transfer balance account in respect of a superannuation income stream of which you were a * retirement phase recipient, but not a child recipient. (2) If you again start to have a * transfer balance account at a later time, this Division applies in relation to that later transfer balance account as if it were the only transfer balance account you have had.

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 294-185 — Transfer balance cap—special rule for child recipient

(1) Despite section 294 ‑ 35, your transfer balance cap on a day is the sum of the cap increments that have arisen under this Subdivision on and before that day. Note: Your transfer balance cap is not worked out on a financial year basis and it is not indexed. (2) However, if there are one or more * superannuation income streams of which you are, on that day, a * retirement phase recipient but not a * child recipient, your transfer balance cap on that day is the sum of: (a) the sum of the cap increments that have arisen under this Subdivision on and before that day; and (b) your transfer balance cap for the * financial year in which the day falls, worked out disregarding: (i) any cap increments that arise under this Subdivision; and (ii) any * transfer balance credits or * transfer balance debits that have arisen in your * transfer balance account in respect of superannuation income streams of which you are a child recipient. Note: Paragraph (b) is the transfer balance cap you would have if you were not a child recipient of any income stream. Disregarding credits, debits and cap increments allows this cap to be indexed appropriately under section 294 ‑ 40 (which is about proportional indexation).

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 294-190 — Cap increment—child recipient just before 1 July 2017

(1) A cap increment arises if, just before 1 July 2017, you are the * child recipient of a * superannuation income stream. (2) The amount of the cap increment is the * general transfer balance cap. (3) The cap increment arises on 1 July 2017.

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 294-195 — Cap increment—child recipient on or after 1 July 2017, deceased had no transfer balance account

(1) A cap increment arises if: (a) on a day (the starting day ) on or after 1 July 2017, you start to be the * child recipient of a * superannuation income stream; and (b) the deceased did not have a * transfer balance account just before death. (2) The amount of the cap increment is: (a) the * general transfer balance cap, unless paragraph (b) applies; or (b) if you are not the only person to receive a * superannuation death benefit because of the death of the person—the proportion of the general transfer balance cap that corresponds to your share of the deceased’s * superannuation interests. (3) The cap increment arises on the starting day.

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 294-200 — Cap increment—child recipient on or after 1 July 2017, deceased had transfer balance account

(1) A cap increment arises if: (a) on a day (the starting day ) on or after 1 July 2017, you start to be the * child recipient of a * superannuation income stream; and (b) the deceased had a * transfer balance account just before death. Income stream fully funded by deceased’s retirement phase interests (2) If the * superannuation interest that supports the * superannuation income stream is wholly attributable to one or more superannuation interests of the deceased that were in the * retirement phase, the amount of the cap increment equals the amount of the * transfer balance credit that arises in your * transfer balance account in respect of the * superannuation income stream. Income stream fully funded by deceased’s accumulation phase interests (3) If the * superannuation interest that supports the * superannuation income stream is wholly attributable to one or more superannuation interests of the deceased that were not in the * retirement phase, the amount of the cap increment is nil. Note: A superannuation income stream covered by this subsection will generally result in excess transfer balance. The exceptions are: where you have additional cap increments under section 294 ‑ 190 or 294 ‑ 195, or where you have a higher cap under subsection 294 ‑ 185(2) because you also receive a non ‑ death benefit income stream. Income stream partly funded by deceased’s accumulation interests (4) If the * superannuation interest that supports the * superannuation income stream is: (a) in part (the retirement phase part ) attributable to a superannuation interest of the deceased that was in the * retirement phase; and (b) in part attributable to a superannuation interest of the deceased that was not in the retirement phase; the amount of the cap increment is so much of the * transfer balance credit that arises in your * transfer balance account in respect of the superannuation income stream as represents the retirement phase part. Note: A superannuation income stream covered by this subsection will generally result in excess transfer balance. The exceptions are: where you have additional cap increments under section 294 ‑ 190 or 294 ‑ 195, or where you have a higher cap under subsection 294 ‑ 185(2) because you also receive a non ‑ death benefit income stream. Reduced increment for excess transfer balance (5) Despite subsections (2) and (4), the cap increment is reduced if there was * excess transfer balance in the deceased’s * transfer balance account just before death. The amount of the reduction is: (a) the proportion of the excess transfer balance that corresponds to your share of the deceased’s * superannuation interests that were in the * retirement phase; less (b) the amount of any * superannuation lump sum paid to you, because of the death of the person from a superannuation interest of the deceased that was in the retirement phase. When cap increment arises (6) The cap increment arises: (a) on the starting day, unless paragraph (b) applies; or (b) if you are a reversionary beneficiary—at the end of the period of 12 months beginning on the starting day. Treatment of investment earnings after death (7) For the purposes of working out under this section the extent to which a * superannuation interest is attributable to another superannuation interest, if: (a) a superannuation interest of the deceased was in the * retirement phase; and (b) on or after the death of the deceased, an amount of investment earnings is added to the superannuation interest; the superannuation interest is taken to include that amount of investment earnings, except to the extent that the amount of investment earnings includes an amount paid under a policy of insurance on the life of the deceased or an amount arising from self ‑ insurance.

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 294-225 — What this Subdivision is about

This Subdivision neutralises the earnings tax exemption on retirement phase income streams that result in excess transfer balance. Table of sections Operative provisions 294 ‑ 230 Excess transfer balance tax 294 ‑ 235 Your excess transfer balance earnings 294 ‑ 240 When tax is payable—original assessments 294 ‑ 245 When tax is payable—amended assessments 294 ‑ 250 General interest charge

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 294-230 — Excess transfer balance tax

(1) If there is an * excess transfer balance period for your * transfer balance account, you are liable to pay * excess transfer balance tax imposed by the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 for the period. Note: The amount of the tax is set out in the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 . (2) An excess transfer balance period for a * transfer balance account is a continuous period of one or more days during which, at the end of each day, there is * excess transfer balance in the account. (3) Your * excess transfer balance tax is worked out by reference to the sum of: (a) your * excess transfer balance earnings for each day in the * excess transfer balance period; and (b) for each day in the excess transfer balance period that is also a day in the period mentioned in subsection 294 ‑ 25(2) (the determination period )—the amount worked out by multiplying the rate mentioned in subsection 294 ‑ 235(2) for the day by the sum of your excess transfer balance earnings for each previous day in the determination period.

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 294-235 — Your excess transfer balance earnings

(1) Your excess transfer balance earnings for a day is worked out by multiplying the rate mentioned in subsection (2) for that day by the amount of your * excess transfer balance at the end of that day. (2) The rate is the lower of: (a) the rate worked out under subsection 8AAD(1) of the Taxation Administration Act 1953 for the day; and (b) a rate determined under subsection (3) for the day. (3) The Minister may, by legislative instrument, determine a rate for a day.

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 294-240 — When tax is payable—original assessments

Your * assessed excess transfer balance tax is due and payable at the end of 21 days after the Commissioner gives you notice of the assessment of the amount of the * excess transfer balance tax. Note: For assessments of excess transfer balance tax, see Division 155 in Schedule 1 to the Taxation Administration Act 1953 .

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 294-245 — When tax is payable—amended assessments

If the Commissioner amends your assessment, any extra * assessed excess transfer balance tax resulting from the amendment is due and payable 21 days after the day the Commissioner gives you notice of the amended assessment.

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 294-250 — General interest charge

If an amount of * assessed excess transfer balance 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 excess transfer balance tax; (ii) general interest charge on any of the assessed excess transfer balance tax. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .

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 295-1 — What this Division is about

This Division sets out special rules about the taxation of superannuation entities. It sets out how to calculate the taxable income of those entities and to identify the components of that taxable income for the purpose of applying the appropriate tax rate. It sets out how to calculate the no ‑ TFN contributions income of relevant entities for an income year for the purpose of applying the appropriate tax rate.

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 295-5 — Entities to which Division applies

(1) This Division applies to these entities: (a) a * complying superannuation fund; (b) a * non ‑ complying superannuation fund; (c) a * complying approved deposit fund; (d) a * non ‑ complying approved deposit fund; (e) a * pooled superannuation trust; whether they are established by an * Australian law, by a public authority constituted by or under such a law or in some other way. (2) The * superannuation provider in relation to an entity referred to in paragraph (1)(a) to (d) is liable to pay tax on the taxable income of the entity. Note: A superannuation provider in relation to an entity referred to in paragraphs (1)(a) and (b) or in relation to an RSA is liable to pay tax on the no ‑ TFN contributions income of the entity: see section 295 ‑ 605. (3) The trustee of a * pooled superannuation trust is liable to pay tax on the taxable income of the trust. (4) This Division also applies to an * RSA provider that is not a * life insurance company. Note 1: Division 320 deals with RSA providers that are life insurance companies. Note 2: However, Subdivisions 295 ‑ I and 295 ‑ J apply to RSA providers that are life insurance companies: see section 320 ‑ 155.

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 295-10 — How to work out the tax payable by superannuation entities

(1) Use this method for * superannuation funds, * approved deposit funds and * pooled superannuation trusts: Method statement Step 1. For a * superannuation fund, work out the * no ‑ TFN contributions income. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to that income. Step 2. Work out the entity’s assessable income and deductions taking account of the special rules in this Division. The special rules modify some provisions of this Act. They also include amounts in assessable income, allow deductions and exempt amounts from income tax. Step 3. Work out the entity’s taxable income as if its trustee: (a) were an Australian resident (except where paragraph (b) applies); or (b) for a * non ‑ complying superannuation fund that is a * foreign superannuation fund for the income year—were not an Australian resident. Step 4. For a * complying superannuation entity, work out the * low tax component and * non ‑ arm’s length component of the entity’s taxable income. Step 5. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to: (a) if step 4 applies to the entity—the components worked out under that step; or (b) otherwise—the entity’s taxable income. Step 6. Subtract the entity’s * tax offsets from the step 5 amount or, for a * superannuation fund, from the sum of the fund’s step 1 and step 5 amounts. (2) Use this method for * RSA providers: Method statement Step 1. Work out the entity’s * no ‑ TFN contributions income. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to that income. Step 2. Work out the entity’s assessable income and deductions taking account of the special rules in this Division. Step 3. Work out the * RSA component and * standard component of the entity’s taxable income. Step 5. Apply the applicable rates as set out in the Income Tax Rates Act 1986 to the components. The * RSA component is taxed at a concessional rate. Step 6. Subtract the entity’s * tax offsets from the sum of the entity’s step 1 and step 5 amounts.

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 45 of 2008, effective 26 June 2008 | 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 | Amended by No 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-15 — Division does not impose a tax on property of a State

This Division does not impose a tax on property of any kind belonging to a State (within the meaning of section 114 of the Constitution).

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 295-20 — Exempting laws ineffective

A * Commonwealth law (other than this Act) does not have the effect of exempting the trustee of an entity to which this Division applies from the liability to pay tax unless it does so expressly.

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 295-25 — Assessments on basis of anticipated SIS Act notice

(1) The Commissioner may make an assessment for a fund or trust that is not a * complying superannuation entity for the income year as if it were such an entity if the Commissioner considers it likely that a notice will be given under section 40 of the Superannuation Industry (Supervision) Act 1993 having the effect that it will become such an entity. (2) However, the grounds for making an assessment under subsection (1) are taken never to have existed if: (a) the Commissioner becomes satisfied that the notice will not be given; or (b) * APRA does not receive the documents referred to in subsection 36(1) of the Superannuation Industry (Supervision) Act 1993 about the fund or trust before the end of 12 months after the assessment is made.

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 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-30 — Effect of revocation etc. of SIS Act notices

This Division has effect as if a notice given under section 342 of the Superannuation Industry (Supervision) Act 1993 (about pre ‑ 1 July 88 funding credits) or under regulations made for the purposes of that section had never been given if: (a) the notice is revoked; or (b) the decision to give the notice is set aside.

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 295-35 — Acronyms used in tables

In tables in this Division, these acronyms are used for these entities: Acronyms used in tables Item Entity Acronym 1 * Complying superannuation fund CSF 2 * Non ‑ complying superannuation fund N ‑ CSF 3 * Complying approved deposit fund CADF 4 * Non ‑ complying approved deposit fund N ‑ CADF 5 * Pooled superannuation trust PST

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 295-85 — CGT to be primary code for calculating gains or losses

(1) The modifications in subsection (2) apply if a * CGT event happens involving a * CGT asset that was owned by a * complying superannuation entity just before the time of the event. (2) These provisions do not apply to the * CGT event: (a) sections 6 ‑ 5 (about * ordinary income), 8 ‑ 1 (about amounts you can deduct), and 15 ‑ 15 and 25 ‑ 40 (about profit ‑ making undertakings or plans); (aa) section 230 ‑ 15 (about financial arrangements); (b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit ‑ making undertakings or schemes). Exceptions (3) The provisions referred to in subsection (2) can apply to the * CGT event if: (a) any * capital gain or * capital loss from the event is attributable to currency exchange rate fluctuations; or (b) the * CGT asset is one of these: (i) debenture stock, a bond, * debenture, certificate of entitlement, bill of exchange, promissory note or other security; (ii) a deposit with a bank, building society or other financial institution; (iii) a loan (secured or not); (iv) some other contract under which an entity is liable to pay an amount (whether the liability is secured or not). (4) The provisions referred to in subsection (2) can also apply to the * CGT event if a * capital gain or * capital loss from the event is disregarded because of one of the provisions in this table: Where gain or loss disregarded because of CGT provision Item Provision Brief description 1 Paragraph 104 ‑ 15(4)(a) Title in a CGT asset does not pass when a hire purchase or similar agreement ends 2 Section 118 ‑ 5 Cars, motor cycles and valour decorations 3 Section 118 ‑ 10 Collectables and personal use assets 4 Section 118 ‑ 13 Shares in a PDF 5 Section 118 ‑ 25 Trading stock 6 Section 118 ‑ 30 Film copyright 7 Section 118 ‑ 35 R&D 8 Section 118 ‑ 55 Foreign currency hedging gains and losses 9 Section 118 ‑ 60 Certain gifts 10 Subsection 118 ‑ 300(1), for general insurance policies covered by table item 2 in that subsection General insurance policies for property 11 Section 118 ‑ 305 Superannuation 12 Section 118 ‑ 310 CGT event happens to right to, or part of, RSA Note: For item 5, certain assets (particularly shares, units in a unit trust, and land) are not trading stock when owned by the entity (see paragraph 70 ‑ 10(2)(b)).

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 2009, effective Sch 1 (items 1–30, 52–97, 102–105): 26 Mar 2009 (s 2(1) item 2) Sch 1 (items 106–112, 114): 17 Dec 2003 (s 2(1) item 3) | Amended by No 93 of 2011, effective Schedule 1, Schedule 3 (items 1–4, 15–42, 54–107) and Schedule 4 (items 1–9): Royal Assent | Amended by No 71 of 2012, effective Sch 1, Sch 2 and Sch 3 (items 1, 2): 27 June 2012 (s 2(1) items 2, 3) Sch 5 (items 1–3): 1 July 2012 (s 2(1) item 6) | 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 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-90 — CGT rules for pre ‑ 30 June 1988 assets

(1) This section applies to the trustee of a * complying superannuation entity. (2) Parts 3 ‑ 1 and 3 ‑ 3 (about capital gains and losses) apply to a * CGT asset that: (a) the trustee or a former trustee owned at the end of 30 June 1988; and (b) the trustee owned at the commencement of this section; as if the trustee had * acquired the asset on 30 June 1988. (3) Subsection (2) does not affect how to work out the asset’s * cost base or * reduced cost base. Note: See Subdivision 295 ‑ B of the Income Tax (Transitional Provisions) Act 1997 for rules about cost base. (4) Subsection 104 ‑ 30(5) applies to an option granted by the trustee as if the reference in that subsection to 20 September 1985 were a reference to 1 July 1988.

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 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-95 — Deductions related to contributions

(1) Provisions of this Act about deducting amounts apply to these entities as if all contributions made to them were included in their assessable income: (a) * complying superannuation funds; (b) * non ‑ complying superannuation funds that are * Australian superannuation funds; (c) * complying approved deposit funds; (d) * non ‑ complying approved deposit funds; (e) * RSA providers. Note 1: This means that the entities can deduct amounts incurred in obtaining the contributions. Note 2: Examples of contributions that are not assessable are: • contributions which the contributor cannot deduct; • contributions excluded from assessable income under Subdivision 295 ‑ D. (2) A * superannuation fund is an Australian superannuation fund at a time, and for the income year in which that time occurs, if: (a) the fund was established in Australia, or any asset of the fund is situated in Australia at that time; and (b) at that time, the central management and control of the fund is ordinarily in Australia; and (c) at that time either the fund had no member covered by subsection (3) (an active member ) or at least 50% of: (i) the total * market value of the fund’s assets attributable to * superannuation interests held by active members; or (ii) the sum of the amounts that would be payable to or in respect of active members if they voluntarily ceased to be members; is attributable to superannuation interests held by active members who are Australian residents. (3) A member is covered by this subsection at a time if the member is: (a) a contributor to the fund at that time; or (b) an individual on whose behalf contributions have been made, other than an individual: (i) who is a foreign resident; and (ii) who is not a contributor at that time; and (iii) for whom contributions made to the fund on the individual’s behalf after the individual became a foreign resident are only payments in respect of a time when the individual was an Australian resident. (4) To avoid doubt, the central management and control of a * superannuation fund is ordinarily in Australia at a time even if that central management and control is temporarily outside Australia for a period of not more than 2 years.

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 295-100 — Deductions for investing in PSTs and life policies

(1) Provisions of this Act about deducting amounts apply to * complying superannuation funds and * complying approved deposit funds as if * ordinary income and * statutory income received from these investments were included in their assessable income: (a) units in a * pooled superannuation trust; (b) * life insurance policies issued by a * life insurance company; (c) an interest in a trust whose assets consist only of life insurance policies issued by a life insurance company. Note: Income from these investments is not assessable: see for example sections 295 ‑ 105 and 118 ‑ 350. (2) A * complying superannuation fund cannot deduct an amount (otherwise than under section 295 ‑ 465) for fees or charges incurred for: (a) * complying superannuation life insurance policies; or (b) * exempt life insurance policies; or (c) units in a * pooled superannuation trust that are * segregated current pension assets of 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 45 of 2008, effective 26 June 2008 | 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 295-105 — Distributions to PST unitholders

The assessable income of a * complying superannuation entity does not include amounts * derived by the entity because it holds units in a * pooled superannuation trust. Note: The entity will not be subject to any tax liability when it disposes of the units: see subsection 295 ‑ 85(2) and section 118 ‑ 350.

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 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-155 — What this Subdivision is about

There are basically 3 types of assessable contributions: (a) those made by a contributor (for example, an employer) on behalf of someone else (for example, an employee); and (b) those made on the contributor’s own behalf for which the contributor is entitled to a deduction; and (c) those transferred from a foreign superannuation fund to an Australian superannuation fund. There are some additions and exceptions. Table of sections Contributions and payments 295 ‑ 160 Contributions and payments 295 ‑ 165 Exception—spouse contributions 295 ‑ 170 Exception—Government co ‑ contributions and contributions for a child 295 ‑ 173 Exception—trustee contributions 295 ‑ 175 Exception—payments by a member spouse 295 ‑ 180 Exception—choice to exclude certain contributions 295 ‑ 185 Exception—temporary residents Personal contributions and roll ‑ over amounts 295 ‑ 190 Personal contributions and roll ‑ over amounts 295 ‑ 195 Exclusion of personal contributions—contributions 295 ‑ 197 Exclusion of personal contributions—successor funds Transfers from foreign funds 295 ‑ 200 Transfers from foreign superannuation funds Application of tables to RSA providers 295 ‑ 205 Application of tables to RSA providers Former constitutionally protected funds 295 ‑ 210 Former constitutionally protected 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 295-160 — Contributions and payments

The assessable income of an entity includes contributions or payments as set out in this table for the income year in which the contributions or payments are received. Note: For an explanation of the acronyms used, see section 295 ‑ 35. Contributions and payments included in assessable income Item Assessable income of this entity: Includes: 1 CSF N ‑ CSF that is an * Australian superannuation fund for the income year * RSA provider Contribution to provide * superannuation benefits for someone else (except a contribution that is a * roll ‑ over superannuation benefit) 2 N ‑ CSF that is a * foreign superannuation fund for the income year Contribution to provide * superannuation benefits for someone else to the extent that it relates to a period when that person was: (a) an Australian resident; or (b) a foreign resident who * derives * withholding payments covered by subsection 900 ‑ 12(3) (except a contribution that is a * roll ‑ over superannuation benefit) 3 CSF CADF * RSA provider Payment under section 65 of the Superannuation Guarantee (Administration) Act 1992 4 CSF * RSA provider Payment under section 61 or 61A of the Small Superannuation Accounts Act 1995

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 295-165 — Exception—spouse contributions

(1) Item 1 of the table in section 295 ‑ 160 does not include in assessable income a contribution made by an individual to a * complying superannuation fund or an * RSA: (a) to provide * superannuation benefits for the individual’s * spouse (regardless whether the benefits are payable to the individual’s spouse’s * SIS dependants if the individual’s spouse dies before or after becoming entitled to receive the benefits); and (b) that the individual cannot deduct under Subdivision 290 ‑ B. (2) Paragraph (1)(a) does not apply to * superannuation benefits for a * spouse living permanently separately and apart from the individual.

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 295-170 — Exception—Government co ‑ contributions and contributions for a child

(1) Item 1 of the table in section 295 ‑ 160 does not include in assessable income a contribution: (a) that is a Government co ‑ contribution made under the Superannuation (Government Co ‑ contribution for Low Income Earners) Act 2003 ; or (b) for the benefit of a person under 18 that is not made by or on behalf of the person’s employer. (2) Item 4 of the table in section 295 ‑ 160 does not include in assessable income a payment to the extent to which it represents a Government co ‑ contribution or co ‑ contributions made under the Superannuation (Government Co ‑ contribution for Low Income Earners) Act 2003 .

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 295-173 — Exception—trustee contributions

Item 1 of the table in section 295 ‑ 160 does not include in assessable income: (a) a contribution made by an entity that was, when the contribution was made, the trustee of a * complying superannuation entity; or (b) a contribution made out of the * complying superannuation assets, or out of the * segregated exempt assets, of a * life insurance company.

Amendment history: Inserted 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 75 of 2010, effective Sch 1 (items 34, 35) and Sch 6 (items 7–10): 29 June 2010 (s 2(1) items 2, 9) Sch 2 (item 26): 1 July 2010 (s 2(1) item 4) Sch 2 (item 27): never commenced (s 2(1) item 5) Sch 3, Sch 4 and Sch 5 (items 1, 7–9): 28 June 2010 (s 2(1) items 6, 7) Sch 5 (items 10, 11): 1 Jan 2018 (s 2(1) item 8) | Repealed and substituted by No 53 of 2016, effective Sch 1 (item 1), Sch 2, Sch 3 (items 2–4), Sch 4 (items 1–5), Sch 5 (items 2, 29–67, 75), Sch 6 (items 21–34), Sch 8 (item 1) and Sch 9: 5 May 2016 (s 2(1) items 2, 4) | Amended by No 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-175 — Exception—payments by a member spouse

Contributions are not included in assessable income under section 295 ‑ 160 if they are an amount paid by a member spouse, as mentioned in regulations under the Family Law Act 1975 , to a * regulated superannuation fund, or to an * RSA provider, to be held for the benefit of the * non ‑ member spouse in satisfaction of the non ‑ member spouse’s entitlement in respect of the * superannuation interest concerned.

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 130 of 2015, effective s 4, Sch 1 (items 1–3, 5–21) and Sch 3 (items 1–5): 16 Sept 2015 (s 2(1) items 1, 2, 4) Sch 2: 1 July 2015 (s 2(1) item 3) Sch 4 (items 1–52, 54–58): 17 Sept 2015 (s 2(1) item 5)

s 295-180 — Exception—choice to exclude certain contributions

(1) Item 1 of the table in section 295 ‑ 160 does not include an amount in the assessable income of a * public sector superannuation scheme for an income year to the extent that the trustee chooses that it not be included. (2) The entity that made the contributions must consent to the choice. Note: Making this choice effectively shifts the liability for tax on the contributions to the recipient of the benefit. The benefit is treated as an element untaxed in the fund: see Subdivision 301 ‑ C. (3) However, the choice cannot be made for an income year for an amount that exceeds the sum of amounts covered by notices given by the trustee under section 307 ‑ 285 for * superannuation benefits paid in the income year. (4) A choice under this section cannot be revoked or withdrawn. (5) A choice under this section cannot be made in relation to a * public sector superannuation scheme that comes into operation after 5 September 2006.

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 295-185 — Exception—temporary residents

Item 2 of the table in section 295 ‑ 160 does not include a contribution in the assessable income of an entity if the individual (for whom it was made) is a * temporary resident at the end of the income year to which the contribution 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 295-190 — Personal contributions and roll ‑ over amounts

(1) The assessable income of an entity includes amounts as set out in this table. Note: For an explanation of the acronyms used, see section 295 ‑ 35. Personal contributions and roll ‑ over amounts included in assessable income Item Assessable income of this entity: Includes: 1 CSF * RSA provider A contribution: (a) made to the CSF or * RSA; and (b) covered by a valid and acknowledged notice given to the * superannuation provider of the CSF or RSA under section 290 ‑ 170 2 CSF CADF N ‑ CADF * RSA provider A * roll ‑ over superannuation benefit that an individual is taken to receive under section 307 ‑ 15 to the extent that: (a) it consists of an * element untaxed in the fund (other than an element untaxed in the fund under subsection 307 ‑ 290(4)); and (b) is not an * excess untaxed roll ‑ over amount for that individual 2A CSF * RSA provider A * roll ‑ over superannuation benefit that an individual is taken to receive under section 307 ‑ 15 to the extent that: (a) the CSF or * RSA is a * successor fund; and (b) the benefit relates to a contribution that, before it was transferred to the successor fund, was not covered by a valid and acknowledged notice given to any * superannuation provider under section 290 ‑ 170; and (c) while the benefit is held in the successor fund, the contribution becomes covered by a valid and acknowledged notice given to the superannuation provider of the successor fund under that section 3 CSF CADF * RSA provider The * taxable component of a directed termination payment (within the meaning of section 82 ‑ 10F of the Income Tax (Transitional Provisions) Act 1997 ) (1A) Items 2 and 2A of the table in subsection (1) do 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 . Income years in which amounts are included in assessable income (2) A contribution referred to in item 1 is included in the income year in which it is received if the notice is received by the * superannuation provider by the day the provider lodges its * income tax return for that income year. (3) Otherwise it is included in the income year in which the notice is received. (4) A payment referred to in item 2 or 3 is included in the income year in which it is received by the * superannuation provider. (5) A benefit referred to in item 2A is included in the income year in which it is received if the notice is received by the * superannuation provider by the day the provider lodges its * income tax return for that income year. (6) Otherwise it is included in the income year in which the notice is received.

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 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 89 of 2013, effective Sch 1 (items 1–13): 28 June 2013 (s 2(1) items 2–5) Sch 1 (items 14–25): 2 July 2019 (s 2(1) items 6–8) | Amended by No 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-195 — Exclusion of personal contributions—contributions

Variation notice received before return lodged (1) A contribution is not included in the assessable income of a * complying superannuation fund or * RSA provider under item 1 of the table in subsection 295 ‑ 190(1) to the extent that it has been reduced by a notice under section 290 ‑ 180 if the notice is received by the * superannuation provider before it has lodged its * income tax return for the income year in which the contribution was made. Variation notice received after return lodged (2) A contribution is not included in the assessable income of a * complying superannuation fund or * RSA provider under item 1 of the table in subsection 295 ‑ 190(1) for the income year in which the contribution was made to the extent that it has been reduced by a notice under section 290 ‑ 180 if: (a) the notice is received by the * superannuation provider after it has lodged its * income tax return for the income year; and (b) the provider exercises the option mentioned in subsection (3). (3) An amount referred to in subsection (2) may, at the option of the provider, be excluded from the assessable income of the fund or * RSA provider for the income year referred to in subsection (2) if excluding it would result in a greater reduction in tax for that year than the reduction that would occur for the income year in which the notice is received if a deduction were allowed under item 2 of the table in subsection 295 ‑ 490(1). Note: The exclusion is an alternative to the fund deducting the amount under item 2 of the table in subsection 295 ‑ 490(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 | 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 295-197 — Exclusion of personal contributions—successor funds

Scope (1) This section applies to the * superannuation provider (the successor provider ) of a * complying superannuation fund or * RSA if, apart from this section, a * roll ‑ over superannuation benefit would be included in the assessable income of the fund or * RSA provider under item 2A of the table in subsection 295 ‑ 190(1). Variation notice received before return lodged (2) The benefit is not so included, to the extent that the relevant contribution has been reduced by a notice under section 290 ‑ 180, if the notice is received by the successor provider before the successor provider has lodged its * income tax return for the income year in which the benefit was transferred. Variation notice received after return lodged (3) The benefit is not so included in the assessable income for the income year in which the benefit was transferred, to the extent that the relevant contribution has been reduced by a notice under section 290 ‑ 180, if: (a) the notice is received by the successor provider after the successor provider has lodged its * income tax return for the income year; and (b) the successor provider exercises the option mentioned in subsection (4). (4) An amount referred to in subsection (3) may, at the option of the successor provider, be excluded from the assessable income of the fund or * RSA provider for the income year referred to in subsection (3) if excluding it would result in a greater reduction in tax for that year than the reduction that would occur for the income year in which the notice is received if a deduction were allowed under item 2B of the table in subsection 295 ‑ 490(1). Note: The exclusion is an alternative to the fund deducting the amount under item 2B of the table in subsection 295 ‑ 490(1).

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 295-200 — Transfers from foreign superannuation funds

(1) The assessable income of a fund that is an * Australian superannuation fund for the income year includes an amount transferred to the fund from a fund that was a * foreign superannuation fund for the income year in relation to a member of the foreign fund to the extent that the amount transferred exceeds amounts vested in the member at the time of the transfer. (2) The assessable income of a fund that is a * complying superannuation fund for the income year includes so much of an amount transferred to the fund from a fund that was a * foreign superannuation fund for the income year as is specified in a choice made by a former member of the foreign fund under section 305 ‑ 80. (3) The amount is included in the income year in which the transfer happens. (4) This section also applies to an amount transferred 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.

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 295-205 — Application of tables to RSA providers

The tables in this Subdivision apply to * RSA providers only to the extent that amounts are paid to * RSAs they provide.

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 295-210 — Former constitutionally protected funds

(1) This section applies to a * complying superannuation fund for an income year if the fund ceased to be a * constitutionally protected fund during the year or at the end of the previous year. (2) The assessable income of the fund for the income year includes the sum of the * roll ‑ over superannuation benefits to the extent that they consist of the * element untaxed in the fund of the * taxable component that would be included in that assessable income if all contributions and earnings accumulated in the fund when the fund ceased to be a * constitutionally protected fund: (a) had been paid out of the fund immediately before it ceased to be a constitutionally protected fund; and (b) were paid to the fund as roll ‑ over superannuation benefits immediately after 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

s 295-260 — Transfer of liability to investment vehicle

(1) The * superannuation provider in relation to a * complying superannuation fund or a * complying approved deposit fund (the transferor ) may reduce the amount that would otherwise be included in the fund’s assessable income for an income year under Subdivision 295 ‑ C by agreement with another entity (the transferee ) in which it holds investments. What the transferee must be (2) The transferee must be a * life insurance company or a * pooled superannuation trust. Note: Amounts transferred are included in the transferee’s assessable income: see section 295 ‑ 320 (for PSTs) and paragraph 320 ‑ 15(1)(i) (for life insurance companies). Agreement requirements (3) The transferor may make one agreement only for an income year with a particular transferee. (4) An agreement: (a) must be in writing, and must be signed by or for the transferor and transferee; and (b) must be made by the day the transferor lodges its * income tax return for its income year to which the agreement relates; and (c) cannot be revoked. Limits on transfer (5) The total amount covered by the agreements cannot exceed the amount that would otherwise be included in the transferor’s assessable income under Subdivision 295 ‑ C for that income year. (6) The amount covered by an agreement with a particular transferee cannot exceed this amount: where: greatest equity value is the greatest of these amounts during the transferor’s income year: (a) if the transferee is a * pooled superannuation trust—the * market value of the transferor’s investment in units in the trust; (b) if not—the market value of the transferor’s investment in: (i) * life insurance policies issued by the transferee; or (ii) a trust whose assets consist only of life insurance policies issued by the transferee. transferor’s low tax component tax rate is the rate of tax imposed on the * low tax component of the fund’s taxable income 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 295-265 — Application of pre ‑ 1 July 88 funding credits

Choice to reduce contributions included in assessable income (1) The * superannuation provider in relation to a * complying superannuation fund can choose to reduce the amount of contributions that would otherwise be included in the fund’s assessable income for an income year under item 1 of the table in section 295 ‑ 160 if it has pre ‑ 1 July 88 funding credits available for the income year. When funding credits are available (2) Use this method to work out whether a fund has pre ‑ 1 July 88 funding credits available for an income year: Method statement Step 1. Identify the amount of pre ‑ 1 July 88 funding credits unused at the end of the previous income year. Step 2. Index that amount. Note: Subdivision 960 ‑ M shows you how to index amounts. Step 3. Add any pre ‑ 1 July 88 funding credits transferred to the fund in the income year under regulations made for the purposes of subsection 342(7) of the Superannuation Industry (Supervision) Act 1993 . Step 4. Deduct from the step 3 amount: (a) pre ‑ 1 July 88 funding credits transferred from the fund in the income year under regulations made for the purposes of subsection 342(7) of that Act; and (b) amounts specified in a notice given to the * superannuation provider in relation to the fund under subsection 342(6) of that Act for the income year. Step 5. The result is the pre ‑ 1 July 88 funding credits available to the fund for the income year. That amount, reduced by any amount specified in a choice made under subsection (1) for the income year, is the amount of pre ‑ 1 July 88 funding credits unused at the end of the income year. Note 1: Regulations under subsection 342(7) of the SIS Act allow APRA to approve transfers of pre ‑ 1 July 88 funding credits between funds. Note 2: Subsection 342(6) of that Act covers the situation where the fund’s rules are changed to produce a reduction in pre ‑ 1 July 88 funding credits and the trustee notifies APRA of the change. (3) If a notice is given to the * superannuation provider in relation to the fund under subsection 342(2) of the Superannuation Industry (Supervision) Act 1993 granting the trustee a pre ‑ 1 July 88 funding credit, this section applies as if the pre ‑ 1 July 88 funding credit had arisen at the beginning of the income year in which 1 July 1988 occurred. (4) However, if a notice is given to the * superannuation provider in relation to the fund under subsection 342(4) of the Superannuation Industry (Supervision) Act 1993 for the income year, the fund has no pre ‑ 1 July 88 funding credits. Note: Subsection 342(4) of that Act covers the situation where the fund’s rules are changed to produce a reduction in pre ‑ 1 July 88 funding credits and the provider fails to notify APRA of the change. Limit on choice (5) The total amount covered by the choice cannot exceed the pre ‑ 1 July 88 funding credits available to the fund for the income year. (6) The total amount covered by the choice also cannot exceed the amount of contributions that would otherwise be included in the fund’s assessable income for the income year under item 1 of the table in section 295 ‑ 160 that are used to fund liabilities that accrued before 1 July 1988. (7) The regulations may prescribe either or both of the following: (a) the manner in which the * superannuation provider in relation to a * superannuation fund is to work out the amount applicable to the fund under subsection (6) for an income year; (b) methods (other than the method specified in subsection (6)) of working out how the provider of a superannuation fund can apply pre ‑ 1 July 88 funding credits. (8) Methods prescribed under paragraph (7)(b) may be applicable to particular * superannuation funds or to a class or classes of 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 295-270 — Anticipated funding credits

(1) Subsection (2) has effect if the * superannuation provider in relation to a * complying superannuation fund expects a notice to be given under subsection 342(2) of the Superannuation Industry (Supervision) Act 1993 or under regulations made for the purposes of subsection 342(7) of that Act to the effect that pre ‑ 1 July 88 funding credits of a particular amount will be available to the fund for the income year. (2) Section 295 ‑ 265 applies to the fund as if pre ‑ 1 July 88 funding credits of the anticipated amount were available to the fund for the income year (in addition to any other pre ‑ 1 July 88 funding credits available to the fund for the year). (3) However, section 295 ‑ 265 applies to the fund for the income year as if pre ‑ 1 July 88 funding credits of the anticipated amount were not available to the fund for the income year if: (a) it becomes clear that the expected notice will not be given or that the specified amount of pre ‑ 1 July 88 funding credits will not be available; or (b) * APRA does not receive the things referred to in subsection 342(3) of the Superannuation Industry (Supervision) Act 1993 (for a notice expected under subsection 342(2) of that Act) or the things required to be given under regulations made for the purposes of subsection 342(7) of that Act (for a notice under those regulations) before the earlier of: (i) the end of 12 months after the fund’s assessment is made for the income year; and (ii) the time the things are required to be given by 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 295-320 — Other amounts included in assessable income

The assessable income of an entity includes the amounts as set out in this table. Note: For an explanation of the acronyms used, see section 295 ‑ 35. Amounts included in assessable income Item Assessable income of this entity: Includes: For the income year: 1 PST Amount transferred to it by a CSF or CADF under section 295 ‑ 260 Of the PST that includes the last day of the transferor’s income year to which the agreement relates 2 N ‑ CSF that was a CSF for the previous income year * Ordinary income and * statutory income from previous years worked out under section 295 ‑ 325 Following the income year in which it was a CSF 3 CSF; or N ‑ CSF that is an * Australian superannuation fund for the income year and that was a * foreign superannuation fund for the previous income year * Ordinary income and * statutory income from previous years worked out under section 295 ‑ 330 Following the income year in which it was a foreign superannuation fund 4 CSF The part of a rebate or refund of an insurance premium that is attributable to an amount deducted under an item of the table in subsection 295 ‑ 465(1) In which the rebate or refund is received 5 * RSA provider The part of a rebate or refund of an insurance premium that is attributable to an amount deducted under section 295 ‑ 475 In which the rebate or refund is received

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 295-325 — Previously complying funds

The amount of * ordinary income and * statutory income from previous years included in the assessable income of a fund in an income year under item 2 of the table in section 295 ‑ 320 is:

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 295-330 — Previously foreign funds

The amount of * ordinary income and * statutory income from previous years included in the assessable income of a fund in an income year under item 3 of the table in section 295 ‑ 320 is:

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 295-335 — Amounts excluded from assessable income

The assessable income of an entity does not include the amounts set out in this table. Note: For an explanation of the acronyms used, see section 295 ‑ 35. Amounts excluded from assessable income Item This entity: Does not include this in assessable income: 1 CSF CADF PST A bonus on a * life insurance policy (except a reversionary bonus) 2 PST Amount attributable to amounts received from a * constitutionally protected fund 3 * RSA provider A bonus on a * life insurance policy that is an * RSA (except a reversionary bonus)

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 295-385 — Income from assets set aside to meet current pension liabilities

(1) The * ordinary income and * statutory income of a * complying superannuation fund for an income year is exempt from income tax to the extent that: (a) it would otherwise be assessable income; and (b) it is from * segregated current pension assets. Exception (2) Subsection (1) does not apply to: (a) * non ‑ arm’s length income; or (b) amounts included in assessable income under Subdivision 295 ‑ C. Meaning of segregated current pension assets (3) Assets of a * complying superannuation fund are segregated current pension assets at a time if: (a) the assets are invested, held in reserve or otherwise dealt with at that time solely to enable the fund to discharge all or part of its liabilities (contingent or not) in respect of * RP superannuation income stream benefits of the fund at that time; and (b) the trustee of the fund obtains an * actuary’s certificate before the date for lodgment of the fund’s * income tax return for the income year to the effect that the assets and the earnings that the actuary expects will be made from them would provide the amount required to discharge in full those liabilities, or that part of those liabilities, as they fall due. (4) Assets of a * complying superannuation fund are also segregated current pension assets of the fund at a time if the assets are invested, held in reserve or otherwise being dealt with at that time for the sole purpose of enabling the fund to discharge all or part of its liabilities (contingent or not), as they become due, in respect of * superannuation income stream benefits: (a) that are * RP superannuation income stream benefits of the fund at that time; and (b) prescribed by the regulations for the purposes of this section. (5) Subsection (4) does not apply unless, at all times during the income year, the liabilities of the fund (contingent or not) to pay * RP superannuation income stream benefits of the fund were liabilities in respect of superannuation income stream benefits that are prescribed by the regulations for the purposes of this section. (6) However, assets of a * complying superannuation fund that are supporting a * superannuation income stream benefit that is prescribed by the regulations for the purposes of this section are not segregated current pension assets to the extent that the * market value of the assets exceeds the account balance supporting the benefit. (7) Also, * disregarded small fund assets are not segregated current pension assets. Meaning of segregated current pension assets —trustee choice (8) Despite subsections (3) to (6), none of the assets of a * complying superannuation fund are segregated current pension assets of the fund at any time in an income year if the trustee of the fund chooses under subsection (9) to treat all of the assets as not being segregated current pension assets for the year. (9) The trustee of a * complying superannuation fund may choose to treat all of the assets of the fund as not being * segregated current pension assets of the fund for an income year if, at one or more times in the year, all * superannuation interests in the fund are in the * retirement phase. (10) Subsections (8) and (9) do not apply if: (a) at all times in the year, all * superannuation interests in the fund are in the * retirement phase; or (b) the assets of the fund are * disregarded small fund assets at all times in the 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 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 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 10 of 2022, effective sch 3-5: 1 Apr 2022 (s 2(1) item 3)

s 295-387 — Disregarded small fund assets

(1) The assets of a * complying superannuation fund are disregarded small fund assets at all times in an income year if the fund is covered by subsection (2) for the income year. (2) A * complying superannuation fund is covered by this subsection for an income year if: (a) the fund is a * small superannuation fund at a time during the income year; and (b) at a time during the income year, there is at least one * superannuation interest in the fund that is in the * retirement phase; and (c) just before the start of the income year: (i) a person has a * total superannuation balance that exceeds $1.6 million; and (ii) the person is the * retirement phase recipient of a * superannuation income stream (whether or not the fund is the * superannuation income stream provider for the superannuation income stream); and (d) at a time during the income year, the person has a superannuation interest in the fund (whether or not the superannuation interest is the superannuation interest mentioned in paragraph (b)). (3) However, the fund is not covered by subsection (2) for an income year if, at all times during the income year, all of the assets of the superannuation fund would, apart from subsection 295 ‑ 385(7), be * segregated current pension assets.

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 47 of 2021, effective Sch 1 (items 4–9): 1 July 2021 (s 2(1) item 1) | Amended by No 111 of 2021, effective Sch 1 and 3: 1 Oct 2021 (s 2(1) items 2, 4)

s 295-390 — Income from other assets used to meet current pension liabilities

(1) A proportion of the * ordinary income and * statutory income of a * complying superannuation fund that would otherwise be assessable income is exempt from income tax under this section. The proportion is worked out under subsection (3). Exception (2) Subsection (1) does not apply to: (a) * non ‑ arm’s length income; or (b) amounts included in assessable income under Subdivision 295 ‑ C; or (c) income * derived from * segregated non ‑ current assets; or (d) income that is exempt from income tax under section 295 ‑ 385. Formula (3) The proportion is: where: average value of current pension liabilities is the average value for the income year of the fund’s current liabilities (contingent or not) in respect of * RP superannuation income stream benefits of the fund at any time in that year. This does not include liabilities for which * segregated current pension assets are held. average value of superannuation liabilities is the average value for the income year of the fund’s current and future liabilities (contingent or not) in respect of * superannuation benefits in respect of which contributions have, or were liable to have, been made. This does not include liabilities for which * segregated current pension assets or * segregated non ‑ current assets are held. Actuary’s certificate (4) The value of particular liabilities of the fund at a particular time is the amount of the fund’s assets, together with future contributions in respect of the benefits concerned and expected earnings on the assets and contributions after that time, that would provide the amount required to discharge those liabilities as they fall due. This must be specified in an * actuary’s certificate obtained by the trustee of the fund before the date for lodgment of the fund’s * income tax return for the income year. (5) The expected earnings are worked out at the rate the actuary expects will be the rate of the fund’s earnings on its assets (except * segregated current pension assets or * segregated non ‑ current assets). Superannuation liabilities where no current certificate (6) The superannuation liabilities do not have to be valued by an actuary for the income year if the fund has no * segregated current pension assets or * segregated non ‑ current assets for the income year. Instead, the value can be worked out using this formula: where: current value of assets is the value of all of the fund’s assets at a time in the income year, as specified in an * actuary’s certificate obtained by the trustee of the fund before the date for lodgment of the fund’s * income tax return for the income year. last value of assets is the most recent value of all of the fund’s assets specified in an * actuary’s certificate. last value of superannuation liabilities is the value, at the time of that most recent valuation, of the fund’s superannuation liabilities specified in an * actuary’s certificate. Note: This allows a fund to avoid the expense of an actuarial valuation of its superannuation liabilities, except in those years that a valuation is required by the SIS Act in order for the fund to continue to be complying. (7) Subsections (4), (5) and (6) do not apply in working out the amounts to be used in the formula in subsection (3) if, at all times during the income year, the liabilities of the fund in respect of * RP superannuation income stream benefits of the fund at those times were liabilities in respect of superannuation income stream benefits that are prescribed by the regulations for the purposes of this subsection.

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 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 295-395 — Meaning of segregated non ‑ current assets

(1) Assets of a * complying superannuation fund are segregated non ‑ current assets at a time in an income year if: (a) the assets are invested, held in reserve or otherwise dealt with at that time solely to enable the fund to discharge all or part of its current and future liabilities (contingent or not) to pay benefits in respect of which contributions have, or were liable to have, been made; and (b) the trustee of the fund obtains an * actuary’s certificate before the date for lodgment of the fund’s * income tax return for the income year to the effect that the amount of the assets, together with any future contributions, and the earnings that the actuary expects will be made from them will provide the amount required to discharge in full those liabilities, or that part of those liabilities, as they fall due. (2) The liabilities referred to in paragraph (1)(a) do not include liabilities (contingent or not) in respect of * RP superannuation income stream benefits of the fund at that time. (3) However, * disregarded small fund assets are not segregated non ‑ current assets.

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 295-400 — Income of a PST attributable to current pension liabilities

(1) This proportion of the * ordinary income and * statutory income that would otherwise be assessable income of a * pooled superannuation trust is * exempt income: Exceptions (2) Subsection (1) does not apply to: (a) * non ‑ arm’s length income; or (b) amounts included in assessable income under item 1 of the table in section 295 ‑ 320. Alternative exemption (3) However, the trustee of the * pooled superannuation trust can choose that a different amount be * exempt income of the trust under this section if a percentage of the assessable income of the trust would have been exempt income under section 295 ‑ 385 or 295 ‑ 390 if it had been * derived instead by the unitholders in the trust in proportion to their holdings. (4) That percentage of the trust’s * ordinary income and * statutory income is then * 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 295-405 — Other exempt income

The * ordinary income or * statutory income of an entity is exempt from income tax as set out in this table. Note: For an explanation of the acronyms used, see section 295 ‑ 35. Exempt income Item For this entity: This is exempt: 1 CSF N ‑ CSF CADF N ‑ CADF A grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 2 * RSA provider Amount credited to the * RSA where a * superannuation income stream covered by section 295 ‑ 407 was paid from the RSA for all of the period in the income year that the RSA existed 3 * RSA provider Part of an amount credited to the * RSA (worked out under section 295 ‑ 410) where a * superannuation income stream covered by section 295 ‑ 407 was paid from the RSA for part of the period in the income year that the RSA existed

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 | 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)

s 295-407 — Covered superannuation income streams—RSAs

A * superannuation income stream is covered by this section if: (a) it is a pension (within the meaning of the Retirement Savings Accounts Act 1997 ); and (b) it is in the * retirement phase.

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 295-410 — Amount credited to RSA

For item 3 of the table in section 295 ‑ 405, the part of the amount credited to the * RSA that is * exempt income is worked out by: (a) multiplying the amount by the number of days in the income year for which the pension covered by section 295 ‑ 407 was paid; and (b) dividing the result by the number of days in the income year that the RSA existed.

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 295-460 — Benefits for which deductions are available

Sections 295 ‑ 465 (about deductions for complying funds for insurance premiums), 295 ‑ 470 (about deductions for complying funds for future liability to pay benefits) and 295 ‑ 475 (about deductions for * RSA providers for insurance premiums) apply to these benefits: (a) a * superannuation death benefit; (aa) a benefit consisting of an amount payable to an individual because a * terminal medical condition exists in relation to the individual; (b) a * disability superannuation benefit; (c) a benefit consisting of an amount payable to an individual under an income stream because of the individual’s temporary inability to engage in * gainful employment, that is payable for no longer than: (i) 2 years; or (ii) if an approval under section 62 of the Superannuation Industry (Supervision) Act 1993 is in force for benefits of that kind and the approval specifies a longer maximum period—that longer period; or (iii) if there is no such approval in force—a longer period allowed by the Commissioner. Note 1: The fund can deduct amounts in relation to these benefits under either section 295 ‑ 465 or 295 ‑ 470, but not both. Note 2: The taxable component of the superannuation lump sums will contain an element untaxed in the fund: see section 307 ‑ 290.

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 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 43 of 2011, effective s. 4, Schedule 2 (items 4–6) and Schedule 3 (items 1–9): Royal Assent | Amended by No 61 of 2011, effective s. 4, Schedule 1, Schedule 2 (items 1–8), Schedule 3, Schedule 4 and Schedule 7: Royal Assent

s 295-465 — Complying funds—deductions for insurance premiums

Deductions for insurance premiums (1) A * complying superannuation fund can deduct the proportions specified in this table of premiums it pays for insurance policies that are (wholly or partly) for current or contingent liabilities of the fund to provide benefits referred to in section 295 ‑ 460 for its members. It can deduct the amounts for the income year in which the premiums are paid. Deductions of * complying superannuation funds Item The fund can deduct this amount: 1 30% of the premium for a * whole of life policy if all individuals whose lives are insured are members of the fund 2 10% of the premium for an * endowment policy if all individuals whose lives are insured are members of the fund 3 30% of the part of an insurance policy premium (for a policy that is not a * whole of life policy or an * endowment policy) that is specified in the policy as being for a distinct part of the policy, if that part would have been a whole of life policy had it been a separate policy 4 10% of the part of an insurance policy premium (for a policy that is not a * whole of life policy or an * endowment policy) that is specified in the policy as being for a distinct part of the policy, if that part would have been an endowment policy had it been a separate policy 5 The part of a premium that is specified in the policy as being wholly for the liability to provide certain benefits, if those benefits are benefits referred to in section 295 ‑ 460 6 So much of other insurance policy premiums as are attributable to the liability to provide benefits referred to in section 295 ‑ 460 Note: If the fund receives a rebate or refund of an insurance premium, the amount may be included in its assessable income: see table item 4 in section 295 ‑ 320. (1A) If item 5 of the table applies to part, but not all, of an insurance policy premium, item 6 of the table applies to the rest of the premium as if item 5 did not apply to the premium. (1B) For the purposes of item 6 of the table, the regulations may provide that a specified proportion of a specified insurance policy premium may be treated as being attributable to the * complying superannuation fund’s liability to provide benefits referred to in section 295 ‑ 460. Note: The fund may deduct a proportion other than that specified in the regulations for the premium, but must obtain an actuary’s certificate in accordance with subsection (3) in order to do so. The same applies if the insurance policy premium is not specified in the regulations. Deductions for self ‑ insurance (2) A * complying superannuation fund can also deduct the amount it could reasonably be expected to pay in an * arm’s length transaction to obtain an insurance policy to cover it for that part of its current or contingent liabilities to provide benefits referred to in section 295 ‑ 460 for which it does not have insurance coverage. It can deduct the amount for the income year when it has the liability. (2A) For the purposes of subsection (2), the regulations may provide that a specified proportion of an amount mentioned in subsection (2B) may be treated as being the amount the fund could reasonably be expected to pay in an * arm’s length transaction to obtain an insurance policy to cover it for its current or contingent liabilities to provide benefits referred to in section 295 ‑ 460. Example: If: (a) an actuary certifies the amount a fund could reasonably be expected to pay in an arm’s length transaction to obtain an insurance policy; and (b) the insurance policy covers liabilities of the fund to provide a class of total and permanent disability benefits broader than that covered by section 295 ‑ 460; and (c) the insurance policy is specified in the regulations; and (d) the fund does not have insurance coverage for the liabilities; the fund may deduct, under subsection (2), so much of that certified amount as is specified in the regulations. (2B) The amount is the amount a * complying superannuation fund could reasonably be expected to pay in an * arm’s length transaction to obtain an insurance policy specified in the regulations. Actuary’s certificate (3) The trustee must obtain an * actuary’s certificate before the date for lodgment of the fund’s * income tax return for the income year in order to deduct an amount referred to in item 6 of the table or in subsection (2). (3A) Subsection (3) does not apply to an amount referred to in item 6 of the table in relation to an insurance policy premium, if the trustee deducts, under that item, only the proportion (if any) of the premium specified in the regulations made for the purposes of subsection (1B). Choice not to deduct amounts under this section (4) The trustee may choose not to deduct amounts under this section for an income year and to deduct instead (under section 295 ‑ 470) amounts based on the fund’s future liability to pay the benefits. (5) The choice applies also to future income years unless the Commissioner decides that it should not.

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) | Amended by No 43 of 2011, effective s. 4, Schedule 2 (items 4–6) and Schedule 3 (items 1–9): Royal Assent

s 295-470 — Complying funds—deductions for future liability to pay benefits

(1) A * complying superannuation fund can deduct an amount under this section for an income year if: (a) the trustee of the fund makes a choice under subsection 295 ‑ 465(4) and the choice applies to the income year; and (b) the trustee pays: (i) a benefit referred to in paragraph 295 ‑ 460(a), (aa) or (b) for the income year in consequence of the termination of a member’s employment; or (ii) a benefit referred to in paragraph 295 ‑ 460(c). (2) The amount the fund can deduct is: where: benefit amount is: (a) for a benefit that is a * superannuation lump sum—the amount of the lump sum; or (b) for a benefit that is a * superannuation income stream—the * value of the * superannuation interest supporting the income stream; or (c) for a benefit referred to in paragraph 295 ‑ 460(c)—the total of the amounts paid during the income year. future service days is the number of days in the period starting when: (a) the termination happened; or (b) for a benefit referred to in paragraph 295 ‑ 460(c)—the member became unable to engage in * gainful employment; and ending on the member’s * last retirement day. total service days is the sum of future service days and the number of days in: (a) for a benefit that is a * superannuation lump sum—the * service period for the superannuation lump sum; or (b) for another benefit—the period ending on the first day of the period to which the first payment of the benefit relates and starting on the earliest of: (i) the day on which the member joined the relevant * superannuation fund; and (ii) the first day of the period of employment to which the benefit relates (including a qualifying period before the member could join the fund and any period when the member was not a member of the fund); and (iii) the day applicable under subsection (3). (3) The applicable day is the first day of the * service period for a * superannuation lump sum that is a * roll ‑ over superannuation benefit if all or part of the * value of the other benefit is attributable to the 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 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 61 of 2011, effective s. 4, Schedule 1, Schedule 2 (items 1–8), Schedule 3, Schedule 4 and Schedule 7: Royal Assent

s 295-475 — RSA providers—deductions for insurance premiums

An * RSA provider can deduct premiums it pays for insurance policies that are wholly for its liability to provide benefits referred to in section 295 ‑ 460 for its * RSA holders. It can deduct the amounts for the income year in which the premiums are paid. Note: If the RSA provider receives a rebate or refund of an insurance premium, the amount may be included in its assessable income: see table item 5 in section 295 ‑ 320.

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 295-480 — Meaning of whole of life policy and endowment policy

(1) A whole of life policy is an insurance policy: (a) that includes an investment component; and (b) the premiums for which are not dissected; and (c) where the sum insured (and any bonuses) are payable on: (i) the death of the individual insured; or (ii) the earlier of the death of the individual insured and the individual attaining the age specified in the policy (being at least the age of 85). (2) An endowment policy is an insurance policy: (a) that includes an investment component; and (b) the premiums for which are not dissected; and (c) where the sum insured (and any bonuses) are payable on: (i) a day specified in, or worked out under, the policy; or (ii) the death of the individual insured if that happens before that day; but does not include a * whole of life policy.

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 295-490 — Other deductions

(1) An entity can deduct amounts as set out in this table. Note: For an explanation of the acronyms used, see section 295 ‑ 35. Other deductions Item This entity: Can deduct: For the income year in which: 1 CSF N ‑ CSF CADF N ‑ CADF PST An amount included in the entity’s assessable income under Subdivision 295 ‑ C that is a * fringe benefit The contribution is included in assessable income 2 CSF * RSA provider Contributions made to the CSF or * RSA to the extent they have been reduced by a notice under section 290 ‑ 180 received by the * superannuation provider of the CSF or RSA after it lodged its * income tax return for the income year in which the contributions were made, but only if the provider has not exercised the option mentioned in subsection 295 ‑ 195(3) The notice is received 2A CSF * RSA provider A * roll ‑ over superannuation benefit, to the extent that: (a) the CSF or * RSA is a * successor fund; and (b) the benefit relates to a contribution that, before it was transferred to the successor fund, was covered by a valid and acknowledged notice given to any * superannuation provider under section 290 ‑ 170; and (c) the contribution is reduced by a notice under section 290 ‑ 180 received by the superannuation provider of the successor fund (whether or not the contribution has previously been reduced by a notice given to any superannuation provider under that section) The notice mentioned in paragraph (c) is received 2B CSF * RSA provider A * roll ‑ over superannuation benefit, to the extent that: (a) the benefit is included in the assessable income of the CSF or RSA provider under item 2A of the table in subsection 295 ‑ 190(1); and (b) the relevant contribution has been reduced by a notice under section 290 ‑ 180 received by the * superannuation provider of the CSF or * RSA after it lodged its * income tax return for the income year in which the transfer occurred; and (c) the provider has not exercised the option mentioned in subsection 295 ‑ 197(4) The notice mentioned in paragraph (b) is received 3 CSF N ‑ CSF CADF N ‑ CADF A levy imposed by regulations under section 6 of the Superannuation (Financial Assistance Funding) Levy Act 1993 The levy is incurred 4 Entity that is a N ‑ CSF and has been since 1 July 1988, or since it came into existence if that was later An amount paid to an entity who includes it in assessable income under section 290 ‑ 100 It is included in the entity’s assessable income 5 CSF N ‑ CSF An amount paid by the * superannuation provider of the CSF or N ‑ CSF to the extent: (a) the amount is for a cost incurred because of the provision of personal advice (within the meaning of the Corporations Act 2001 ) to a member of the fund about the member’s interest in the fund (regardless of whether that cost was incurred by the provider, the member or another entity); and (b) the amount is paid at the request, or with the consent, of the member; and (c) the provider has a copy of the written request or consent; and (d) the amount is not incurred in relation to gaining or producing the fund’s * exempt income or * non ‑ assessable non ‑ exempt income The superannuation provider paid the amount (2) A fund cannot deduct an amount under item 3 of the table for a levy imposed by regulations under section 6 of the Superannuation (Financial Assistance Funding) Levy Act 1993 to the extent that: (a) the levy is remitted; or (b) there is a refund or other application of an overpayment of the levy. (3) No other provision of this Act affects a fund’s * income tax liability in relation to the levy.

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) | Amended by No 89 of 2013, effective Sch 1 (items 1–13): 28 June 2013 (s 2(1) items 2–5) Sch 1 (items 14–25): 2 July 2019 (s 2(1) items 6–8) | 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 92 of 2020, effective Sch 1 (items 18–21, 24): 15 Oct 2020 (s 2(1) item 4) Sch 1 (items 25–27): 1 July 2022 (s 2(1) item 5) Sch 2 (items 1–3, 16–35), Sch 3 (items 25–36, 40), Sch 4 (items 1–11, 14), Sch 5 (items 11–38, 56) and Sch 7 (items 5–8, 12–25): 1 Jan 2021 (s 2(1) item 7) | 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 295-495 — Amounts that cannot be deducted

These entities cannot deduct anything for these amounts: Note: For an explanation of the acronyms used, see section 295 ‑ 35. Amounts that cannot be deducted Item This entity Cannot deduct anything for: 1 CSF * Superannuation benefits 2 N ‑ CSF * Superannuation benefits (except amounts paid as mentioned in item 4 of the table in section 295 ‑ 490) 3 * RSA provider * Superannuation benefits paid from, or amounts withdrawn from, * RSAs 4 * RSA provider Amounts credited to * RSAs 5 CSF N ‑ CSF CADF N ‑ CADF A repayment of a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 6 CSF N ‑ CSF * RSA provider An amount payable to a person under an income stream because of the person’s temporary inability to engage in * gainful employment

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 92 of 2008, effective Schedule 1 (items 10–22, 26): 1 Oct 2008 | 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 | 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)

s 295-545 — Components of taxable income—complying superannuation funds, complying ADFs and PSTs

(1) The taxable income of a * complying superannuation entity is split into a * non ‑ arm’s length component and a * low tax component. Note: A concessional rate applies to the low tax component, while the non ‑ arm’s length component is taxed at the highest marginal rate. The rates are set out in the Income Tax Rates Act 1986 . (2) If an entity is not of a kind referred to in paragraph 295 ‑ 550(8)(a) (about certain small entities), the non ‑ arm’s length component for an income year is the entity’s * non ‑ arm’s length income for that year less any deductions to the extent that they are attributable to that income. (2A) If the entity is of a kind referred to in paragraph 295 ‑ 550(8)(a) (about certain small entities), the non ‑ arm’s length component for an income year is the lesser of: (a) the sum of: (i) each amount of the entity’s * non ‑ arm’s length income under subsection 295 ‑ 550(1), (2), (4) or (5) for that year less any deductions to the extent that they are attributable to that income; and (ii) each amount of the entity’s non ‑ arm’s length income under subsection 295 ‑ 550(8) or (9) for that year; and (b) the entity’s taxable income for the income year: (i) less the contributions that are included in the entity’s assessable income under Subdivision 295 ‑ C for the income year; and (ii) plus any deductions to the extent that they are attributable to those contributions. (3) The low tax component is any remaining part of the entity’s taxable income 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 | Amended by No 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7) | Amended by No 52 of 2024, effective sch 3 (items 1 ‑ 5): 29 June 2024 (s 2(1) item 3) sch 4 ‑ 7: 1 July 2024 (s 2(1) item 4)

s 295-550 — Meaning of non ‑ arm’s length income

(1) An amount of * ordinary income or * statutory income is non ‑ arm’s length income of a * complying superannuation entity if, as a result of a * scheme the parties to which were not dealing with each other at * arm’s length in relation to the scheme, one or more of the following applies: (a) the amount of the income is more than the amount that the entity might have been expected to derive if those parties had been dealing with each other at arm’s length in relation to the scheme; (b) if the entity is of a kind referred to in paragraph (8)(a) (about certain small entities): (i) in gaining or producing the income, the entity incurs a loss, outgoing or expenditure of an amount that is less than the amount of a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm’s length in relation to the scheme; and (ii) subsection (8) does not apply to the loss, outgoing or expenditure; (c) if the entity is of a kind referred to in paragraph (8)(a) (about certain small entities): (i) in gaining or producing the income, the entity does not incur a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm’s length in relation to the scheme; and (ii) subsection (9) does not apply to the loss, outgoing or expenditure that the entity might have been expected to incur. This subsection does not apply to an amount to which subsection (2) applies or an amount * derived by the entity in the capacity of beneficiary of a trust. (2) An amount of * ordinary income or * statutory income is also non ‑ arm’s length income of the entity if it is: (a) a * dividend paid to the entity by a * private company; or (b) ordinary income or statutory income that is reasonably attributable to such a dividend; unless the amount is consistent with an * arm’s length dealing. (3) In deciding whether an amount is consistent with an * arm’s length dealing under subsection (2), have regard to: (a) the value of * shares in the company that are assets of the entity; and (b) the cost to the entity of the shares on which the * dividend was paid; and (c) the rate of that dividend; and (d) whether the company has paid a dividend on other shares in the company and, if so, the rate of that dividend; and (e) whether the company has issued any shares to the entity in satisfaction of a dividend paid by the company (or part of it) and, if so, the circumstances of the issue; and (f) any other relevant matters. (4) Income * derived by the entity as a beneficiary of a trust, other than because of holding a fixed entitlement to the income, is non ‑ arm’s length income of the entity. (5) Other income * derived by the entity as a beneficiary of a trust through holding a fixed entitlement to the income of the trust is non ‑ arm’s length income of the entity if, as a result of a * scheme the parties to which were not dealing with each other at * arm’s length in relation to the scheme, one or more of the following applies: (a) the amount of the income is more than the amount that the entity might have been expected to derive if those parties had been dealing with each other at arm’s length in relation to the scheme; (b) if the entity is of a kind referred to in paragraph (8)(a) (about certain small entities)—in acquiring the entitlement or in gaining or producing the income, the entity incurs a loss, outgoing or expenditure of an amount that is less than the amount of a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm’s length in relation to the scheme; (c) if the entity is of a kind referred to in paragraph (8)(a) (about certain small entities)—in acquiring the entitlement or in gaining or producing the income, the entity does not incur a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm’s length in relation to the scheme. (6) This section: (a) applies to a * non ‑ share equity interest in the same way as it applies to a * share; and (b) applies to an * equity holder in a company in the same way as it applies to a shareholder in the company; and (c) applies to a * non ‑ share dividend in the same way as it applies to a * dividend. (7) Paragraphs (1)(b) and (c) and (5)(b) and (c) apply to a loss, outgoing or expenditure whether or not it is of capital or of a capital nature. Certain small entities—general expenses (8) If: (a) a * complying superannuation entity is: (i) a * regulated superannuation fund with no more than 6 members; or (ii) a * self managed superannuation fund; and (b) as a result of a * scheme the parties to which were not dealing with each other at * arm’s length in relation to the scheme: (i) in gaining or producing the * ordinary income and * statutory income of the entity (but not in gaining or producing income in relation to any particular asset or assets of the entity), the entity incurs a loss, outgoing or expenditure of an amount; and (ii) the amount is less than the amount of a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm’s length in relation to the scheme; an amount of the entity’s ordinary income and statutory income equal to twice the difference between the amount that the entity did incur and the amount that the entity might have been expected to incur is non ‑ arm’s length income of the entity. (9) If: (a) a * complying superannuation entity is of a kind referred to in paragraph (8)(a) (about certain small entities); and (b) as a result of a * scheme the parties to which were not dealing with each other at * arm’s length in relation to the scheme, in gaining or producing the * ordinary income and * statutory income of the entity (but not in gaining or producing income in relation to any particular asset or assets of the entity), the entity does not incur a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm’s length in relation to the scheme; an amount of the entity’s ordinary income and statutory income equal to twice the amount that the entity might have been expected to incur is non ‑ arm’s length income of the entity.

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 78 of 2019, effective Sch 2 and Sch 3 (items 1, 2): 1 Jan 2020 (s 2(1) item 3) | Amended by No 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7) | Amended by No 52 of 2024, effective sch 3 (items 1 ‑ 5): 29 June 2024 (s 2(1) item 3) sch 4 ‑ 7: 1 July 2024 (s 2(1) item 4)

s 295-555 — Components of taxable income—RSA providers

(1) The taxable income of an * RSA provider is split into: (a) an * RSA component; and (c) a * standard component. Note: The RSA component is taxed at the same concessional rate that applies to the low tax component of complying superannuation entities (see section 23 of the Income Tax Rates Act 1986 ). The standard component is taxed at the standard company rate. (2) The RSA component for an income year is worked out in this way: Method statement Step 1. Add these amounts included in the provider’s assessable income for the income year: (a) amounts included under Subdivision 295 ‑ C; and (b) other amounts credited during the year to * RSAs that it provides. Step 2. Subtract from the step 1 amount amounts paid from those * RSAs (except benefits for the RSA holders or tax). Step 3. The result is the RSA component . (3) However, if the * RSA component is more than the * RSA provider’s taxable income: (a) the provider’s taxable income is equal to that sum; and (b) this Act applies to the provider as if it had a * tax loss for the income year of an amount that would have been that loss if the RSA component were not * ordinary income or * statutory income. (4) The standard component is the remaining part (if any) of the * RSA provider’s taxable income for the income year after subtracting the * RSA 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 45 of 2008, effective 26 June 2008 | 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 | Amended by No 64 of 2020, effective Sch 3 (items 72–122): 1 July 2020 (s 2(1) item 5) Sch 3 (items 228–239, 325, 326): 1 Oct 2020 (s 2(1) item 6) Sch 3 (items 327–330): 1 July 2017 (s 2(1) item 7)

s 295-605 — Liability for tax on no ‑ TFN contributions income

(1) A * superannuation provider in relation to a * complying superannuation fund is liable to pay tax on the * no ‑ TFN contributions income of the fund for an income year. (2) A * superannuation provider in relation to a * non ‑ complying superannuation fund is liable to pay tax on the * no ‑ TFN contributions income of the fund for an income year. (3) An * RSA provider is liable to pay tax on its * no ‑ TFN contributions income for an income year. Note 1: The tax is imposed by the Income Tax Act 1986 . Note 2: The no ‑ TFN contributions income is subject to a special rate of tax under the Income Tax Rates Act 1986. Note 3: The Commissioner may make an assessment of the amount of income tax on the no ‑ TFN contributions income: see section 169 of the Income Tax Assessment Act 1936.

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 295-610 — No ‑ TFN contributions income

(1) An amount included by Subdivision 295 ‑ C in the assessable income of a * complying superannuation fund, a * non ‑ complying superannuation fund or an * RSA provider for an income year is no ‑ TFN contributions income for the year if: (a) it is included by that Subdivision in the assessable income of the income year of the fund or RSA provider in which 1 July 2007 occurs, or a later income year; and (b) it is a contribution made to the fund or * RSA on or after 1 July 2007 to provide * superannuation benefits for an individual; and (c) by the end of the income year, the individual has not * quoted (for superannuation purposes) his or her * tax file number to the * superannuation provider. Exception (2) However, an amount is not no ‑ TFN contributions income if: (a) the contribution was made in relation to a * superannuation interest or an * RSA of the individual that existed prior to 1 July 2007; and (b) the total contributions made in relation to the superannuation interest or RSA for the income year that are included in assessable income under Subdivision 295 ‑ C did not exceed $1,000.

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 295-615 — Meaning of quoted (for superannuation purposes)

(1) An individual has quoted (for superannuation purposes) a * tax file number to an entity at a time if the individual: (a) quotes his or her tax file number to the entity at that time; or (b) is taken by the Superannuation Industry (Supervision) Act 1993 , the Retirement Savings Accounts Act 1997 or this Act to quote his or her tax file number to the entity at that time; in connection with the operation or the possible future operation of one or more of the following Acts: (c) the Superannuation Acts (within the meaning of Part 25A of the Superannuation Industry (Supervision) Act 1993 ); (d) the Retirement Savings Accounts Act 1997 . (2) An individual is taken to have quoted (for superannuation purposes) a * tax file number to an entity at a time if the Commissioner gives notice of the individual’s tax file number to the entity 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 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 92 of 2008, effective Schedule 1 (items 10–22, 26): 1 Oct 2008 | 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 295-620 — No reduction under Subdivision 295 ‑ D

There is no reduction of the amount of * no ‑ TFN contributions income by Subdivision 295 ‑ D. Note: Subdivision 295 ‑ D can reduce an amount that would otherwise be included in assessable income. It does not reduce the amount of no ‑ TFN contributions income. An amount is still no ‑ TFN contributions income even if, because of Subdivision 295 ‑ D, the amount (or part of it) is not included in 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 295-625 — Assessments

(2) If the conditions in subsection (3) are met, the Commissioner is taken to have made an assessment of a kind set out in subsection (4). (3) The conditions are: (a) one of the following gives the Commissioner an * income tax return for an income year on a particular day (the return day ): (i) a * superannuation provider in relation to a * complying superannuation fund; (ii) a superannuation provider in relation to a * non ‑ complying superannuation fund; (iii) an * RSA provider; and (b) the return is the first income tax return given by the provider for the year; and (c) the Commissioner has not already made an assessment of a kind set out in subsection (4) for the provider for the year. (4) The assessment is taken to have been made for the provider for the income year on the return day, and to be an assessment, in accordance with the information stated in the return, of the amount of income tax payable on the * no ‑ TFN contributions income (if any) of the provider (or to be an assessment that no tax is payable). (5) The return is taken to be notice of the assessment signed by the Commissioner and given to the provider on the return day. Note: The return may also be taken to be a notice of another assessment: see section 166A of the Income Tax Assessment Act 1936 .

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 295-675 — Entitlement to a tax offset

(1) A * superannuation provider in relation to a * superannuation fund or an * RSA provider is entitled to a * tax offset for an income year of the provider (the current year ) commencing on or after 1 July 2007 for amounts of tax that count towards the offset for the provider for the current year. Note: In certain circumstances the superannuation provider or RSA provider can get a refund of the tax offset under Division 67. (2) An amount of tax counts towards the offset for the provider for the current year if subsection (3), (4) or (5) applies for the provider and the tax. Superannuation providers and RSA providers—main case (3) This subsection applies for the provider and the tax if: (a) the tax was payable by the provider in one of the most recent 3 income years of the provider ending before the current year; and (b) the tax was payable on an amount of * no ‑ TFN contributions income of the fund or * RSA provider; and (c) the amount of no ‑ TFN contributions income was a contribution made to the fund or provider to provide * superannuation benefits for an individual who, in the current year, has * quoted (for superannuation purposes) the individual’s * tax file number to the provider for the first time. Superannuation providers of successor funds (4) This subsection applies for the provider (the current provider ) and the tax if: (a) the tax was payable on an amount of * no ‑ TFN contributions income that: (i) was no ‑ TFN contributions income of another * superannuation fund (the previous fund ); and (ii) was a contribution made to the previous fund to provide * superannuation benefits for an individual; and (b) the tax was so payable by the * superannuation provider (the previous provider ) of the previous fund; and (c) the tax was so payable in: (i) one of the most recent 3 income years of the previous provider ending before the current year; or (ii) an income year of the previous provider ending or starting in the current year; and (d) the current provider is the superannuation provider of a * successor fund in relation to the individual and the previous fund; and (e) the individual: (i) never * quoted (for superannuation purposes) the individual’s * tax file number to the previous provider; but (ii) has, in the current year, done so to the current provider for the first time. RSA providers of successor funds (5) This subsection applies for the provider (the current provider ) and the tax if: (a) the tax was payable on an amount of * no ‑ TFN contributions income that: (i) was no ‑ TFN contributions income of another * RSA provider (the previous provider ); and (ii) was a contribution made to the previous provider to provide * superannuation benefits for an individual; and (b) the tax was so payable by the previous provider; and (c) the tax was so payable in: (i) one of the most recent 3 income years of the previous provider ending before the current year; or (ii) an income year of the previous provider ending or starting in the current year; and (d) the current provider is the * superannuation provider of a * successor fund in relation to the individual and an * RSA of the previous provider; and (e) the individual: (i) never * quoted (for superannuation purposes) the individual’s * tax file number to the previous provider but (ii) has, in the current year, done so to the current provider for the first 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 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)

s 295-680 — Amount of the tax offset

The amount of the * tax offset is the sum of each amount of tax that counts towards the offset for the provider for the current 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 296-1 — What this Division is about

This Division reduces the concessional tax treatment of superannuation earnings for individuals with total superannuation balances that, just before the start of an income year or at the end of the year, are greater than the large superannuation balance threshold for the year. There are special rules for foreign superannuation funds, constitutionally protected State higher level office holders, certain justices of the Commonwealth, the Australian Capital Territory and the Northern Territory, non ‑ complying superannuation plans and temporary residents who depart Australia. Note: Part 3 ‑ 20 in Schedule 1 to the Taxation Administration Act 1953 contains rules about the administration of the Division 296 tax.

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 296-5 — Object of this Division

The object of this Division is to reduce the concessional tax treatment of superannuation earnings for individuals with * total superannuation balances that, just before the start of an income year or at the end of the year, are greater than the * large superannuation balance threshold for the year.

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 296-10 — What this Subdivision is about

Subject to certain exceptions, a tax is payable on a proportion of your earnings in relation to superannuation interests if your total superannuation balance just before the start of the year or at the end of the year exceeds the large superannuation balance threshold for the year. A higher amount of tax is payable to the extent that the total superannuation balance exceeds the very large superannuation balance threshold for the year. Table of sections Liability for tax 296 ‑ 15 Liability for tax 296 ‑ 20 Exception—child recipients of superannuation income streams 296 ‑ 25 Exception—structured settlement contributions Large superannuation balance threshold and very large superannuation balance threshold 296 ‑ 30 Large superannuation balance threshold 296 ‑ 35 Very large superannuation balance threshold Taxable superannuation earnings and related concepts 296 ‑ 40 Your taxable superannuation earnings 296 ‑ 45 Your very large superannuation balance earnings component 296 ‑ 50 Total superannuation balance taken to be nil after death 296 ‑ 55 Your total superannuation earnings 296 ‑ 60 Division 296 fund earnings 296 ‑ 65 Your relevant superannuation earnings for a superannuation interest—general rule 296 ‑ 70 Your relevant superannuation earnings for a superannuation interest—certain defined benefit and other interests 296 ‑ 75 Modifications

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 296-15 — Liability for tax

Subject to sections 296 ‑ 20 and 296 ‑ 25, you are liable to pay * Division 296 tax for an income year if you have * taxable superannuation earnings for the year. Note: The amount of the tax is set out in the Superannuation (Building a Stronger and Fairer Super System) Imposition Act 2026 .

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 296-20 — Exception—child recipients of superannuation income streams

You are not liable to pay * Division 296 tax for an income year if you are a * child recipient of a * superannuation income stream at any time in the year.

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 296-25 — Exception—structured settlement contributions

You are not liable to pay * Division 296 tax for an income year if a * structured settlement contribution is made in respect of you in that year or in any earlier income year.

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 296-30 — Large superannuation balance threshold

The large superannuation balance threshold is: (a) for the 2026 ‑ 27 income year—$3,000,000; or (b) for the 2027 ‑ 28 income year or a later income year—the amount worked out by indexing annually the amount mentioned in paragraph (a). Note: Subdivision 960 ‑ M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the threshold: see section 960 ‑ 285.

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 296-35 — Very large superannuation balance threshold

The very large superannuation balance threshold is: (a) for the 2026 ‑ 27 income year—$10,000,000; or (b) for the 2027 ‑ 28 income year or a later income year—the amount worked out by indexing annually the amount mentioned in paragraph (a). Note: Subdivision 960 ‑ M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the threshold: see section 960 ‑ 285.

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 296-40 — Your taxable superannuation earnings

(1) You have taxable superannuation earnings for an income year of the amount worked out using the following formula if: (a) your * total superannuation balance just before the start of the year, or at the end of the year, is greater than the * large superannuation balance threshold for the year; and (b) the amount of your * total superannuation earnings for the year is greater than nil: (2) For the purposes of the formula in subsection (1), the percentage is the amount (expressed as a percentage) worked out using the following formula: where: your total superannuation balance reference amount is the greater of: (a) your * total superannuation balance (if any) just before the start of the year; and (b) your total superannuation balance (if any) at the end of the year. (3) The result of the formula in subsection (2) must be rounded to 2 decimal places (rounding up if the third decimal place is 5 or more).

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 296-45 — Your very large superannuation balance earnings component

(1) You have a very large superannuation balance earnings component for an income year of the amount worked out using the following formula if your * total superannuation balance just before the start of the year, or at the end of the year, is greater than the * very large superannuation balance threshold for the year: (2) For the purposes of the formula in subsection (1), the percentage is the amount (expressed as a percentage) worked out using the following formula: where: your total superannuation balance reference amount is the greater of: (a) your * total superannuation balance (if any) just before the start of the year; and (b) your total superannuation balance (if any) at the end of the year. (3) The result of the formula in subsection (2) must be rounded to 2 decimal places (rounding up if the third decimal place is 5 or more).

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 296-50 — Total superannuation balance taken to be nil after death

For the purposes of sections 296 ‑ 40 and 296 ‑ 45, your * total superannuation balance at a particular time is taken to be nil if, as at that time, you have died.

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 296-55 — Your total superannuation earnings

(1) The amount of your total superannuation earnings for an income year is the total of your * relevant superannuation earnings for the year for: (a) each * superannuation interest of yours that you have at any time in the year; and (b) each superannuation interest that supports a * superannuation income stream of which you are a * retirement phase recipient at any time in the year because of the death of another person. (2) For the purposes of working out that total, the following are taken to be nil: (a) your * relevant superannuation earnings for a * superannuation interest in a * superannuation plan that is a * foreign superannuation fund for the year; (b) your relevant superannuation earnings for a superannuation interest that is a * Division 296 excluded interest in relation to the year; (c) an amount prescribed by the regulations for the purposes of this paragraph. (3) A * superannuation interest mentioned in paragraph (1)(a) or (b) is a Division 296 excluded interest in relation to the year if : (a) column 1 of an item of the following table applies to you for the year; and (b) the interest is specified in column 2 of the item. Excluded superannuation interests Item Column 1 Individual to which item applies for a year Column 2 Superannuation interest 1 at any time in the year, you are declared by the regulations to be an individual to whom this item applies a * superannuation interest in a * constitutionally protected fund 2 at any time before or in the year, you were or are: (a) a Justice of the High Court; or (b) a justice or judge of a court created by the Parliament a * superannuation interest in the * superannuation fund established under the Judges’ Pensions Act 1968 3 at any time before or in the year, you were or are the Chief Justice or a Judge of the Supreme Court of the Australian Capital Territory a * superannuation interest in the * superannuation fund established under the Judges’ Pensions Act 1968 , as it applies under the Supreme Court Act 1933 (ACT) 4 at any time before or in the year, you were or are the Chief Justice or a Judge of the Supreme Court of the Northern Territory a * superannuation interest in the * superannuation fund established under the Supreme Court (Judges Pensions) Act 1980 (NT) 5 both: (a) at any time in the year, you are a * retirement phase recipient of a * superannuation income stream because of the death of another person; and (b) item 1, 2, 3 or 4 applies to that other person for the year, or would have applied to that other person for the year but for the person’s death a * superannuation interest that: (a) supports the income stream; and (b) is of a kind specified in column 2 of that item 6 both: (a) at any time in the year: (i) you have a * superannuation interest in a * superannuation plan; or (ii) you are a * retirement phase recipient of a * superannuation income stream, supported by a superannuation interest in a superannuation plan, because of the death of another person; and (b) the superannuation plan: (i) is not a * complying superannuation plan for the year; and (ii) is not a * foreign superannuation fund for the year the superannuation interest (4) Nothing in subsection (2) or (3) limits section 6 of the Superannuation (Building a Stronger and Fairer Super System) Imposition Act 2026 . Note: Section 6 of the Superannuation (Building a Stronger and Fairer Super System) Imposition Act 2026 provides that Division 296 tax is not imposed in relation to a person if the imposition would exceed the legislative power of the Commonwealth.

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 296-60 — Division 296 fund earnings

Superannuation entities (not including RSA providers or pooled superannuation trusts) (1) The Division 296 fund earnings for an income year for an entity to which Division 295 (about taxation of superannuation entities) applies is the amount worked out using the following formula: where: assessable contributions is the total of the contributions that are included in the entity’s assessable income under Subdivision 295 ‑ C for the year. net exempt current pension income is the result of: (a) working out the total amount of the entity’s * exempt income under sections 295 ‑ 385 and 295 ‑ 390 for the year; and (b) subtracting the total deductions the entity could make if the exempt income were assessable income, to the extent attributable to the exempt income. Note 1: Sections 295 ‑ 385 and 295 ‑ 390 are about income from assets set aside or otherwise used to meet current pension liabilities. Note 2: Sections 296 ‑ 50, 296 ‑ 60 and 296 ‑ 65 of the Income Tax (Transitional Provisions) Act 1997 , which provide for certain adjustments relating to CGT for the purposes of working out Division 296 fund earnings, may be relevant to working out net exempt current pension income under this subsection in some circumstances. pooled superannuation trust component is the total of any amounts for the year the entity has under subsection (2). relevant taxable income or loss is: (a) the entity’s taxable income for the year; or (b) for an income year that is a * loss year—the amount of the entity’s * tax loss for the year, expressed as a negative amount. Note 1: Adjustments may apply in relation to the cost base or reduced cost base of a CGT asset that is an asset of a small superannuation fund at the end of 30 June 2026: see section 296 ‑ 50 of the Income Tax (Transitional Provisions) Act 1997 . Note 2: Adjustments apply in relation to net capital gains of complying superannuation funds if relevant to working out a person’s relevant superannuation earnings for a superannuation interest for the 2026 ‑ 27 income year to the 2029 ‑ 30 income year: see section 296 ‑ 60 of the Income Tax (Transitional Provisions) Act 1997 . Note 3: Deferred notional gains are disregarded for the purposes of working out the entity’s relevant taxable income or loss under this subsection: see subsection 296 ‑ 65(1) of the Income Tax (Transitional Provisions) Act 1997 . Note 4: Certain matters are to be disregarded in working out the entity’s relevant taxable income or loss: see subsection (3) of this section. (2) For the purposes of the definition of pooled superannuation trust component in subsection (1), the entity has an amount under this subsection equal to the amount worked out using the following formula if it holds any units in a * pooled superannuation trust at any time during the trust’s income year (the relevant year ): (a) that is the same period as the entity’s income year mentioned in subsection (1); or (b) that, of the trust’s income years, covers the most of the entity’s income year: where: entity’s average units is the average number of units in the trust during the relevant year as attributable to the holdings of the entity. total average units is the average number of units in the trust during the relevant year. (3) In working out the entity’s relevant taxable income or loss in relation to an income year for the purposes of subsection (1): (a) disregard paragraph 295 ‑ 100(2)(c); and (b) disregard paragraph 70B(2A)(b) of the Income Tax Assessment Act 1936 ; and (c) in determining any * net capital gain or * net capital loss for the year, or any deductions to the extent they are attributable to a net capital gain for the year, disregard the following (except in determining any previously unapplied net capital losses from earlier income years): (i) section 118 ‑ 12 (about assets used to produce exempt income or non ‑ assessable non ‑ exempt income) of this Act, to the extent it applies to a * capital gain or * capital loss that a * complying superannuation entity makes from a * segregated current pension asset; (ii) section 118 ‑ 320 (about segregated current pension assets of a complying superannuation entity). Note 1: Paragraph 295 ‑ 100(2)(c) is about deductions for fees and charges for units in a pooled superannuation trust that are segregated current pension assets. Note 2: Paragraph 70B(2A)(b) of the Income Tax Assessment Act 1936 is about deductions for a loss on the disposal or redemption of certain securities that are segregated current pension assets. Note 3: The provisions mentioned in paragraph (c) of this subsection still apply for the purposes of working out the entity’s net exempt current pension income under subsection (1) of this section. Pooled superannuation trusts (4) Despite subsection (1), the Division 296 fund earnings for an income year for a * pooled superannuation trust is the amount worked out using the following formula: where: assessable transferred contributions is the total of the amounts included in the assessable income of the trust under item 1 of the table in section 295 ‑ 320 (about certain amounts included in assessable income) for the year. net exempt current pension income is the result of: (a) working out the total amount of the trust’s * exempt income under section 295 ‑ 400 for the year; and (b) subtracting the total deductions the entity could make if the exempt income were assessable income, to the extent attributable to the exempt income. Note 1: Section 295 ‑ 400 is about income of a pooled superannuation trust attributable to current pension liabilities. Note 2: Sections 296 ‑ 50, 296 ‑ 60 and 296 ‑ 65 of the Income Tax (Transitional Provisions) Act 1997 , which provide for certain adjustments relating to CGT for the purposes of working out Division 296 fund earnings, may be relevant to working out net exempt current pension income under this subsection in some circumstances. relevant taxable income or loss is: (a) the trust’s taxable income for the year; or (b) for an income year that is a * loss year—the amount of the trust’s * tax loss for the year, expressed as a negative amount. Note 1: A person will not have relevant superannuation earnings in relation to a pooled superannuation trust. However, Division 296 fund earnings of pooled superannuation trusts are included in the Division 296 fund earnings of certain entities under subsection (1) of this section. Note 2: Adjustments apply in relation to net capital gains of pooled superannuation trusts if relevant to working out a person’s relevant superannuation earnings for a superannuation interest for the 2026 ‑ 27 income year to the 2029 ‑ 30 income year: see section 296 ‑ 60 of the Income Tax (Transitional Provisions) Act 1997 . Note 3: Deferred notional gains are disregarded for the purposes of working out the trust’s relevant taxable income or loss under this subsection: see subsection 296 ‑ 65(2) of the Income Tax (Transitional Provisions) Act 1997 . RSA providers that are not life insurance companies (5) Despite subsection (1) of this section, the Division 296 fund earnings for an income year for an * RSA provider that is not a * life insurance company is the amount worked out using the following formula: where: assessable contributions is the total of the contributions that are included in the * RSA provider’s assessable income under Subdivision 295 ‑ C for the year. relevant exempt income is the total amount of the * RSA provider’s * exempt income under items 2 and 3 of the table in section 295 ‑ 405 (about other exempt income) for the year. RSA providers that are life insurance companies (6) The Division 296 fund earnings for an income year for an * RSA provider that is a * life insurance company is the amount worked out using the following formula: where: relevant annuity income is the total of the amounts of the * RSA provider’s assessable income mentioned in paragraphs 320 ‑ 137(3)(d) and (e) (about amounts credited to * RSAs from which * annuities are paid) for the year. relevant taxable income is the total of the amounts included in the assessable income of the * RSA provider under paragraph 320 ‑ 137(2)(f) (about amounts credited and debited to * RSAs) for the year. Other matters (7) The Division 296 fund earnings for an income year for an entity is nil if, apart from this subsection, it would be negative.

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 296-65 — Your relevant superannuation earnings for a superannuation interest—general rule

(1) Your relevant superannuation earnings for an income year ( your year ) for a * superannuation interest is the amount attributable to the interest under this section, of the * Division 296 fund earnings for: (a) the entity that is: (i) for an interest in a * superannuation fund—the superannuation fund; or (ii) for an interest in an * approved deposit fund—the approved deposit fund; or (iii) for an * RSA—the * RSA provider; and (b) the income year of that entity that is the same period as your year (or that, of the income years of the entity, covers the most of your year). (2) Subsection (1) does not apply in relation to: (a) a * superannuation interest that, at any time in your year: (i) is or includes a * defined benefit interest; and (ii) is not in the * retirement phase; or (b) a superannuation interest that is prescribed by the regulations for the purposes of this paragraph. Note: See section 296 ‑ 70 in relation to superannuation interests mentioned in paragraphs (a) and (b) of this subsection. General attribution requirement (3) The amount attributable to the * superannuation interest must be determined on a fair and reasonable basis, having regard to the matters prescribed by the regulations for the purposes of this subsection. Specific requirements for interests in small superannuation funds and prescribed interests (4) Subsection (3) does not apply if the * superannuation interest is: (a) a superannuation interest in a * small superannuation fund; or (b) a superannuation interest prescribed by the regulations for the purposes of this paragraph. (5) The amount attributable to such a * superannuation interest must instead be determined in accordance with the regulations. (6) Regulations made for the purposes of subsection (5): (a) may provide for the amount attributable to the interest to be determined wholly or partly by reference to an * actuary’s certificate; and (b) may specify circumstances in which a nil amount is attributable to the interest.

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 296-70 — Your relevant superannuation earnings for a superannuation interest—certain defined benefit and other interests

(1) Your relevant superannuation earnings for an income year for a * superannuation interest mentioned in subsection 296 ‑ 65(2) is the amount worked out using the following formula: where: prescribed factor is the value prescribed by the regulations for the purposes of this definition. your contributions total is the amount (which may be a nil amount) determined in accordance with regulations made for the purposes of this definition. your withdrawals total is the amount (which may be a nil amount) determined in accordance with regulations made for the purposes of this definition. (2) For the purposes of subsection (1), if the interest does not exist at the end of the year, or just before the start of the year, the * total superannuation balance value of the interest at that time is taken to be nil.

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 296-75 — Modifications

(1) Section 296 ‑ 65 or 296 ‑ 70 has effect in relation to an individual subject to any modifications prescribed by the regulations for the purposes of this subsection. (2) Without limiting subsection (1), regulations made for the purposes of that subsection may modify section 296 ‑ 65 or 296 ‑ 70 in relation to an individual in different ways depending on any of the following matters: (a) the individual to whom the modification relates; (b) whether a * superannuation interest of the individual is in the * retirement phase; (c) whether a superannuation interest of the individual is or includes a * defined benefit interest; (d) a * superannuation income stream (if any) of which the individual is a * retirement phase recipient; (e) the rules of a * superannuation fund or * approved deposit fund, or the terms and conditions of an * RSA, of which the individual is a member; (f) the * superannuation provider in relation to a * superannuation plan of which the individual is a member; (g) whether a superannuation interest of the individual is subject to a * payment split; (h) whether the individual is treated as having a superannuation interest under subsection 307 ‑ 230(3); (i) whether the individual dies during an income year; (j) any other matter. (3) Without limiting subsection (1), in modifying section 296 ‑ 65 or 296 ‑ 70 in relation to an individual’s * relevant superannuation earnings for an income year, the regulations may deal with income or other amounts relating to that income year or to any earlier or later period.

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 296-125 — What this Subdivision is about

This Subdivision has rules about payment of Division 296 tax. Table of sections Operative provisions 296 ‑ 130 When tax is payable—original assessments 296 ‑ 135 When tax is payable—amended assessments 296 ‑ 140 General interest charge

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 296-130 — When tax is payable—original assessments

(1) Your * assessed Division 296 tax for an income year is due and payable at the end of 84 days after the Commissioner gives you notice of the assessment of the amount of the * Division 296 tax. Exception for tax deferred to a Division 296 debt account (2) However, subsection (1) does not apply to an amount of * assessed Division 296 tax that is * deferred to a Division 296 debt account for a * superannuation interest. Note 1: For assessments of Division 296 tax, see Division 155 in Schedule 1 to the Taxation Administration Act 1953 . Note 2: For deferred to a Division 296 debt account , see Division 134 in that Schedule. Note 3: 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)