Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p38
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 38/64)
Character Range: 493788–496555

the time is:
 (a) the time just before the event mentioned in subsection (3) happens; or
 (b) if there are 2 or more such events—the time just before the earliest of those events happens.
 (6) For the purposes of paragraph (4)(b), work out the tax free component of the superannuation interest as follows:
 (a) first, assume that:
 (i) an eligible termination payment had been made in respect of the holder of the interest just before the time mentioned in subsection (5); and
 (ii) the amount of the eligible termination payment had been equal to the value of the superannuation interest at that time;
 (b) next, work out the unused undeducted purchase price (within the meaning of paragraph (a) of the definition of that term in subsection 27A(1) of the Income Tax Assessment Act 1936 just before the commencement of this section, and disregarding paragraphs (b) and (c) of that definition) of the superannuation income stream, reduced by the tax free components (worked out under subsection (2)) of any benefits paid from the superannuation income stream after 30 June 2007;
 (c) next, work out the pre‑July 83 component (within the meaning of section 27A of the Income Tax Assessment Act 1936 just before the commencement of this section) of the eligible termination payment.
The tax free component is equal to the sum of the amounts worked out under paragraphs (b) and (c).
 (6A) Despite subsection (6), if:
 (a) at least one superannuation income stream benefit was paid from the superannuation income stream before 1 July 1994; or
 (b) section 27AAAA of the Income Tax Assessment Act 1936 (as in force just before 1 July 2007) applied to the superannuation income stream just before 1 July 2007;
for the purposes of paragraph (4)(b), the tax free component is equal to the amount worked out under paragraph (6)(b).
 (7) For the purposes of paragraph (6)(c), disregard the value of the interest to the extent that it would consist, apart from this subsection, of the element untaxed in the fund of the taxable component of a superannuation benefit constituted by the eligible termination payment.

Commutation of superannuation income stream
 (8) If the superannuation income stream has been wholly or partially commuted as mentioned in paragraph (3)(a), treat the applicable time for the purposes of subsection 307‑125(3) of the Income Tax Assessment Act 1997 in relation to a superannuation benefit arising from the commutation as:
 (a) the time just before the commutation; or
 (b) if 1 or more other events mentioned in subsection (3) happened before the commutation—the time just before the earliest of those events happens.

307‑127  Extension—income stream replacing an earlier one because of an involuntary roll‑over
 (1) Section 307‑125 also applies to