Document ID: chunk:federal_register_of_legislation:C2017C00177:clause:1_34:p1
Version: federal_register_of_legislation:C2017C00177
Segment Type: clause
Provision Reference: sch 1 cl 34 (pt 1/4)
Character Range: 76479–79336

34  After Division 293
Insert:

Division 294—Transfer balance cap

Table of Subdivisions
294‑A Application of Division 294 of the Income Tax Assessment Act 1997
294‑B CGT relief

Subdivision 294‑A—Application of Division 294 of the Income Tax Assessment Act 1997

Table of sections
294‑10 Application of Division 294 of the Income Tax Assessment Act 1997
294‑30 Minor excess transfer balances disregarded if remedied in first 6 months

294‑10  Application of Division 294 of the Income Tax Assessment Act 1997
  Division 294 of the Income Tax Assessment Act 1997 applies on and after 1 July 2017.

294‑30  Minor excess transfer balances disregarded if remedied in first 6 months
  Despite sections 294‑30 and 294‑140 of the Income Tax Assessment Act 1997 (which are about when you have excess transfer balance), you do not have excess transfer balance in your transfer balance account on any day in the period of 6 months beginning on 1 July 2017 if:
 (a) the only transfer balance credits in the account in that period arose under item 1 of the table in subsection 294‑25(1) of that Act (which is about superannuation income streams you have just before 1 July 2017); and
 (b) the sum of those transfer balance credits exceeds your transfer balance cap, but is less than or equal to $1,700,000; and
 (c) at the end of the period, the sum of all the transfer balance debits arising in your transfer balance account equals or exceeds the amount of the excess from paragraph (b).

Subdivision 294‑B—CGT relief

Table of sections
294‑100 Object
294‑105 Interpretation
294‑110 Segregated current pension assets
294‑115 Superannuation funds using the proportionate method—deemed sale and purchase of CGT asset
294‑120 Superannuation funds using the proportionate method—disregard initial capital gain but recognise deferred notional gain

294‑100  Object
The object of this Subdivision is to provide temporary relief from certain capital gains that might arise as a result of individuals complying with the following legislative changes:
 (a) the introduction of a transfer balance cap (as a result of Schedule 1 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016);
 (b) the exclusion of transition to retirement income streams (and similar income streams) from being superannuation income streams in the retirement phase (as a result of Schedule 8 to that Act).

294‑105  Interpretation
  In this Subdivision:
pre‑commencement period means the period:
 (a) starting on the start of the day on which the Bill that became the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 was introduced into the House of Representatives; and
 (b) ending just before 1 July 2017.

294‑110  Segregated current pension assets
 (1) This section applies if:
 (a) at the start of the pre‑commencement period, a CGT asset of a fund is