Income tax: what is the method for valuing fixed term pensions other than purchased pensions for the purposes of the reasonable benefit limits (RBLs)?

TD 2000/28 provides the method used for calculating the capital value of a fixed term pension other than a purchased pension under former section 140ZO of the Income Tax Assessment Act 1936 (ITAA 1936).

Section 140ZO of the ITAA 1936 was contained in former Division 14 of the ITAA 1936. Division 14 of the ITAA 1936 provided for a system of RBLs applicable to certain eligible termination payments (ETPs), superannuation pensions and annuities as well as, inter alia , the Commissioner's power to determine the extent to which the ETP, pension or annuity exceeded the recipient's RBLs.

Division 14 of the ITAA 1936 was repealed by the Superannuation Legislation Amendment (Simplification) Act 2007 , which came into effect on 1 July 2007. RBLs are no longer used to calculate taxation of superannuation amounts and no indexed RBLs have been provided since the 2006-07 income year.

TD 2000/28 has no application for the 2007-08 income year and later years, and is therefore withdrawn.