{"id":"F2024L00129","name":"Income Tax (Transitional Provisions) (Permanent Incapacity Benefits) Rules 2024","slug":"income-tax-transitional-provisions-permanent-incapacity-benefits-rules-2024","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105075,"registerId":"commonwealth-F2024L00129-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Income Tax (Transitional Provisions) (Permanent Incapacity Benefits) Rules 2024.\n\n#### 3 Authority\n\n  This instrument is made under the Income Tax (Transitional Provisions) Act 1997.\n\n#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Income Tax (Transitional Provisions) Act 1997 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\n> Act means the Income Tax (Transitional Provisions) Act 1997.\n\n## Part 2—Transitional rules\n\n#### 5 Amendment of assessments for the 2022‑23 income year—transitional rule for permanent incapacity benefits\n\n  Under section 301-105 of the Act, subparagraph 301-100(2)(b)(i) of the Act has effect as if the reference in that subparagraph to the 2021-22 income year were a reference to the 2022-23 income year.\n\n#### 6 Amendment of assessments for the 2023‑24 income year—transitional rule for permanent incapacity benefits\n\n  (1) Under subsection 301‑105(1) of the Act, this section prescribes matters of a transitional nature that relate to the 2023‑24 income year.\n  (2) This section applies if:\n    (a) a superannuation benefit (the trigger benefit) was paid to an individual in the 2020‑21 income year or an earlier income year; and\n    (b) the Commissioner made an assessment for the income year for the individual before 4 December 2020; and\n    (c) the trigger benefit was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (d) the Commissioner made the assessment on the basis that the trigger benefit was a superannuation lump sum.\n  (3) The Commissioner cannot amend an assessment for the 2023‑24 income year for the individual on the basis that a superannuation benefit paid to the individual is a superannuation income stream benefit if:\n    (a) the superannuation benefit was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (b) the Commissioner made the assessment on the basis that the superannuation benefit was a superannuation lump sum; and\n    (c) for the 2022‑23 income year:\n    (i) a superannuation benefit (the 2022‑23 benefit) was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (ii) the Commissioner made an assessment for the individual on the basis that the 2022‑23 benefit was a superannuation lump sum.\n  (4) Subsection (3) does not apply in any of these cases:\n    (a) if the Commissioner may amend the assessment in accordance with item 5 (fraud or evasion) or 6 (review or appeal) of the table in subsection 170(1) of the Income Tax Assessment Act 1936;\n    (b) if the amendment is made for the purpose of giving effect to a provision specified in the regulations for the purposes of paragraph 301‑100(4)(b) of the Act.","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Income Tax (Transitional Provisions) (Permanent Incapacity Benefits) Rules 2024.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the Income Tax (Transitional Provisions) Act 1997.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Income Tax (Transitional Provisions) Act 1997 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\n> Act means the Income Tax (Transitional Provisions) Act 1997.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Transitional rules","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Income Tax (Transitional Provisions) (Permanent Incapacity Benefits) Rules 2024.\n\n#### 3 Authority\n\n  This instrument is made under the Income Tax (Transitional Provisions) Act 1997.\n\n#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Income Tax (Transitional Provisions) Act 1997 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\n> Act means the Income Tax (Transitional Provisions) Act 1997.\n\n## Part 2—Transitional rules\n\n#### 5 Amendment of assessments for the 2022‑23 income year—transitional rule for permanent incapacity benefits\n\n  Under section 301-105 of the Act, subparagraph 301-100(2)(b)(i) of the Act has effect as if the reference in that subparagraph to the 2021-22 income year were a reference to the 2022-23 income year.\n\n#### 6 Amendment of assessments for the 2023‑24 income year—transitional rule for permanent incapacity benefits\n\n  (1) Under subsection 301‑105(1) of the Act, this section prescribes matters of a transitional nature that relate to the 2023‑24 income year.\n  (2) This section applies if:\n    (a) a superannuation benefit (the trigger benefit) was paid to an individual in the 2020‑21 income year or an earlier income year; and\n    (b) the Commissioner made an assessment for the income year for the individual before 4 December 2020; and\n    (c) the trigger benefit was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (d) the Commissioner made the assessment on the basis that the trigger benefit was a superannuation lump sum.\n  (3) The Commissioner cannot amend an assessment for the 2023‑24 income year for the individual on the basis that a superannuation benefit paid to the individual is a superannuation income stream benefit if:\n    (a) the superannuation benefit was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (b) the Commissioner made the assessment on the basis that the superannuation benefit was a superannuation lump sum; and\n    (c) for the 2022‑23 income year:\n    (i) a superannuation benefit (the 2022‑23 benefit) was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (ii) the Commissioner made an assessment for the individual on the basis that the 2022‑23 benefit was a superannuation lump sum.\n  (4) Subsection (3) does not apply in any of these cases:\n    (a) if the Commissioner may amend the assessment in accordance with item 5 (fraud or evasion) or 6 (review or appeal) of the table in subsection 170(1) of the Income Tax Assessment Act 1936;\n    (b) if the amendment is made for the purpose of giving effect to a provision specified in the regulations for the purposes of paragraph 301‑100(4)(b) of the Act.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Amendment of assessments for the 2022‑23 income year—transitional rule for permanent incapacity benefits","content":"#### 5 Amendment of assessments for the 2022‑23 income year—transitional rule for permanent incapacity benefits\n\n  Under section 301-105 of the Act, subparagraph 301-100(2)(b)(i) of the Act has effect as if the reference in that subparagraph to the 2021-22 income year were a reference to the 2022-23 income year.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Amendment of assessments for the 2023‑24 income year—transitional rule for permanent incapacity benefits","content":"#### 6 Amendment of assessments for the 2023‑24 income year—transitional rule for permanent incapacity benefits\n\n  (1) Under subsection 301‑105(1) of the Act, this section prescribes matters of a transitional nature that relate to the 2023‑24 income year.\n  (2) This section applies if:\n    (a) a superannuation benefit (the trigger benefit) was paid to an individual in the 2020‑21 income year or an earlier income year; and\n    (b) the Commissioner made an assessment for the income year for the individual before 4 December 2020; and\n    (c) the trigger benefit was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (d) the Commissioner made the assessment on the basis that the trigger benefit was a superannuation lump sum.\n  (3) The Commissioner cannot amend an assessment for the 2023‑24 income year for the individual on the basis that a superannuation benefit paid to the individual is a superannuation income stream benefit if:\n    (a) the superannuation benefit was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (b) the Commissioner made the assessment on the basis that the superannuation benefit was a superannuation lump sum; and\n    (c) for the 2022‑23 income year:\n    (i) a superannuation benefit (the 2022‑23 benefit) was paid to the individual because the individual satisfied a condition of release specified in item 103 (permanent incapacity) of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994; and\n    (ii) the Commissioner made an assessment for the individual on the basis that the 2022‑23 benefit was a superannuation lump sum.\n  (4) Subsection (3) does not apply in any of these cases:\n    (a) if the Commissioner may amend the assessment in accordance with item 5 (fraud or evasion) or 6 (review or appeal) of the table in subsection 170(1) of the Income Tax Assessment Act 1936;\n    (b) if the amendment is made for the purpose of giving effect to a provision specified in the regulations for the purposes of paragraph 301‑100(4)(b) of the Act.","sortOrder":6}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This legislation appears to be a targeted transitional instrument with a narrow, specific purpose: managing the tax treatment of permanent incapacity superannuation benefits across specific income years. It does not appear to have expanded beyond its original intent of providing temporary rules for assessment amendments during a transition period."},"complexity_factors":["Multiple cross-references to external legislation (Income Tax (Transitional Provisions) Act 1997, Income Tax Assessment Act 1936, Superannuation Industry (Supervision) Regulations 1994)","Nested conditional logic in section 6 with four cumulative conditions in subsection (2) and three in subsection (3)","Temporal complexity involving four different income years (2020-21, 2021-22, 2022-23, 2023-24) and a specific calendar date (4 December 2020)","Technical superannuation terminology requiring understanding of 'condition of release', 'superannuation lump sum' vs 'superannuation income stream benefit'","Exceptions to exceptions in subsection 6(4) carving out fraud/evasion and regulatory provisions","Legislative instrument format with authority and definitions sections adding structural overhead"],"plain_english_summary":"This bill creates temporary tax rules for superannuation payments made because of permanent incapacity. It extends the ATO’s window to amend 2022–23 assessments for certain incapacity payments and shields some taxpayers in 2023–24 from having earlier-assessed lump sums reclassified as income streams.\n\nIt affects people who received disability-related super benefits (2020–21 to 2023–24) and the Commissioner of Taxation, providing tax certainty except in cases like fraud or active legal appeals."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"This instrument alters the temporal scope of the transitional protection by treating a 2021–22 reference as 2022–23 (s.5) and adds a targeted non‑amendment rule for 2023–24 (s.6) that protects individuals previously assessed on the basis that permanent incapacity benefits were lump sums. The rule narrows the Commissioner’s ability to recharacterise those payments for 2023‑24, except where amendment is permitted for fraud, review/appeal, or to give effect to specified regulatory provisions."},"complexity_factors":["Narrow, time‑limited scope (rules target 2022‑23 and 2023‑24 years only)","Relies on cross‑references to the Income Tax (Transitional Provisions) Act 1997 and SIS Regulations item 103 for key definitions and conditions","Creates a negative restraint on Commissioner discretion with specified exceptions (fraud, review/appeal, regulatory purpose)","Requires identification of historical assessments made before a specific date (before 4 December 2020)","Low operational complexity but high dependency on accurate historical administrative records"],"plain_english_summary":"This instrument tweaks transitional tax rules governing permanent incapacity superannuation benefits. It treats an existing 2021–22 reference as 2022–23 (s.5) and stops the Commissioner reclassifying certain benefits as superannuation income streams for the 2023–24 year when earlier assessments treated them as lump sums, with exceptions for fraud, review/appeal, or specific regulatory adjustments (s.6). Affected taxpayers (recipients of permanent incapacity benefits) keep prior lump‑sum treatment; the Commissioner’s discretion to amend those specific assessments is constrained."}},"importantCases":[],"_links":{"self":"/api/acts/income-tax-transitional-provisions-permanent-incapacity-benefits-rules-2024","history":"/api/acts/income-tax-transitional-provisions-permanent-incapacity-benefits-rules-2024/history","analysis":"/api/acts/income-tax-transitional-provisions-permanent-incapacity-benefits-rules-2024/analysis","conflicts":"/api/acts/income-tax-transitional-provisions-permanent-incapacity-benefits-rules-2024/conflicts","importantCases":"/api/acts/income-tax-transitional-provisions-permanent-incapacity-benefits-rules-2024/important-cases","documents":"/api/acts/income-tax-transitional-provisions-permanent-incapacity-benefits-rules-2024/documents"}}