203BApplication of Division to tax‑exempt annuities and lump sums

203B Application of Division to tax‑exempt annuities and lump sums

This Division applies, at a particular time, to: (a) an annuity (a tax‑exempt annuity) payable (now or in the future) by: (i) a company that is registered under section 21; or (ii) a body that carries on State insurance, within the meaning of paragraph 51(xiv) of the Constitution; if, at that time, the requirements of sections 54‑20 to 54‑40 of the Income Tax Assessment Act 1997 are satisfied in relation to the annuity; and (b) a lump sum (a tax‑exempt lump sum) payable (now or in the future) by: (i) a company that is registered under section 21; or (ii) a body that carries on State insurance, within the meaning of paragraph 51(xiv) of the Constitution; if, at that time, the requirements of sections 54‑45 to 54‑60 of the Income Tax Assessment Act 1997 are satisfied in relation to the lump sum.

Note 1: The application of this Division to bodies that carry on State insurance is subject to section 5.

Note 2: Division 54 of the Income Tax Assessment Act 1997 provides a tax exemption for certain payments under structured settlements and structured orders.