Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 2/12)
Character Range: 4582204–4584989

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.

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