Commonwealth Consolidated Acts

TAX LAWS AMENDMENT (2008 MEASURES NO. 2) ACT 2008 - SCHEDULE 7

Part   1 -- Amendments

Income Tax Assessment Act 1997

1   Section   11 - 55 (table item headed "superannuation")

After:

insert:

2   At the end of Division   303

Add:

303 - 10   Superannuation lump sum member benefit paid to member having a terminal medical condition

  (1)   This section applies to a * superannuation member benefit that:

  (a)   is a * superannuation lump sum; and

  (b)   is:

  (i)   paid from a * complying superannuation plan; or

  (ii)   a * superannuation guarantee payment, a * small superannuation account payment, an * unclaimed money payment, a * superannuation co - contribution benefit payment or a * superannuation annuity payment.

  (2)   The lump sum is not assessable income and is not * exempt income if a * terminal medical condition exists in relation to you when you receive the lump sum or within 90 days after you receive it.

Note:   For a lump sum you receive in the 2007 - 08 financial year, the period of 90 days may be extended until 30   June 2008: see section   303 - 10 of the Income Tax (Transitional Provisions) Act 1997 .

3   Subsection 995 - 1(1)

Insert:

"terminal medical condition" has the meaning given by the regulations.

Income Tax (Transitional Provisions) Act 1997

4   After Division   302

Insert:

Division   303 -- Superannuation benefits paid in special circumstances

Table of sections

303 - 10   Superannuation lump sum paid to member having a terminal medical condition

303 - 10   Superannuation lump sum member benefit paid to member having a terminal medical condition

  (1)   This section applies to a superannuation member benefit that you receive during the 2007 - 08 financial year and that:

  (a)   is a superannuation lump sum; and

  (b)   is:

  (i)   paid from a complying superannuation plan; or

  (ii)   a superannuation guarantee payment, a small superannuation account payment, an unclaimed money payment, a superannuation co - contribution benefit payment or a superannuation annuity payment.

  (2)   The lump sum is not assessable income and is not exempt income if a terminal medical condition exists in relation to you at a time in the period:

  (a)   starting when you receive the lump sum; and

  (b)   ending at the later of:

  (i)   90 days after you receive it; and

  (ii)   30   June 2008.

Part   2 -- Application

5   Application

The amendments made by this Schedule apply to payments made on or after 1   July 2007.