Part 2Transitional rules

Part 1—Preliminary

1 Name

This instrument is the Income Tax (Transitional Provisions) (Permanent Incapacity Benefits) Rules 2024.

3 Authority

This instrument is made under the Income Tax (Transitional Provisions) Act 1997.

4 Definitions

Note: 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.

In this instrument:

Act means the Income Tax (Transitional Provisions) Act 1997.

Part 2—Transitional rules

5 Amendment of assessments for the 2022‑23 income year—transitional rule for permanent incapacity benefits

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.

6 Amendment of assessments for the 2023‑24 income year—transitional rule for permanent incapacity benefits

(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. (2) This section applies if: (a) a superannuation benefit (the trigger benefit) was paid to an individual in the 2020‑21 income year or an earlier income year; and (b) the Commissioner made an assessment for the income year for the individual before 4 December 2020; and (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 (d) the Commissioner made the assessment on the basis that the trigger benefit was a superannuation lump sum. (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: (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 (b) the Commissioner made the assessment on the basis that the superannuation benefit was a superannuation lump sum; and (c) for the 2022‑23 income year: (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 (ii) the Commissioner made an assessment for the individual on the basis that the 2022‑23 benefit was a superannuation lump sum. (4) Subsection (3) does not apply in any of these cases: (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; (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.