Document ID: chunk:federal_register_of_legislation:C2010C00233:clause:11_11b:p1
Version: federal_register_of_legislation:C2010C00233
Segment Type: clause
Provision Reference: sch 11 cl 11B (pt 1/2)
Character Range: 242861–245554

11B  Transitional definition of deductible amount (commencing 1 July 2007)

 (1) This clause applies if:
 (a) a person has received at least one payment from a defined benefit income stream before 1 July 2007, and is still receiving payments from the income stream; and
 (b) the person receives income support payment in respect of a continuous period starting before, and ending on or after, the person's trigger day (see subclause (5)); and
 (c) the amount of the income support payment received before the person's trigger day was affected by the deduction of a deductible amount (within the meaning of this Act or the Social Security Act, as the case requires, apart from this clause) from the amount of the payments payable to the person for a year under the income stream; and
 (d) if the person's trigger day is after 1 July 2007—the income stream has not been partially commuted on or after 1 July 2007 and before the person's trigger day.

Note 1: If the income stream is wholly commuted, this clause will stop applying because the person will no longer be receiving payments from the income stream (see paragraphs (1)(a) and (d)).

Note 2: For the deduction of a deductible amount from amounts payable under certain defined benefit income streams, see sections 46V and 46Y of this Act and sections 1099A and 1099D of the Social Security Act.

 (2) Despite the amendment of this Act by Part 2 of Schedule 9 to the Tax Laws Amendment (Simplified Superannuation) Act 2007, for the purposes of working out the amount of any service pension or income support supplement received by the person on or after the trigger day in respect of the remaining part of the period mentioned in paragraph (1)(b), the deductible amount, in relation to the income stream for a year, is the greater of the following amounts:
 (a) the deductible amount mentioned in paragraph (1)(c);
 (b) the sum of the amounts that are the tax free components (worked out under subsections 307‑125(4) to (7) of the Income Tax (Transitional Provisions) Act 1997) of the payments received from the income stream during the year.

Note: Service pension and income support supplement are income support payments within the meaning of the Social Security Act (see subsection 23(1) of that Act).

 (3) However, this clause stops applying to an income stream immediately after the time (if any) that the deductible amount in relation to the income stream is, under subclause (2), the amount mentioned in paragraph (2)(b).

 (4) For the purposes of this clause, without limiting paragraph (1)(b), if the form of a person's income support payment mentioned in paragraph (1)(b) changes during a period, the continuity of the period