What this ruling covers
The Australian Taxation Office has issued Product Ruling PR 2026/16. The ruling sets out the income tax consequences for Australian tax residents who hold an International Investment Bond (IIB) or International Investment Account (IIA) issued by St. James's Place International plc.
The ruling covers two specific income tax matters:
- Section 26AH of the Income Tax Assessment Act 1936
- Capital gains tax under Part 3-1 of the Income Tax Assessment Act 1997
What the ruling does not cover
The ruling explicitly does not cover fees, foreign exchange gains or losses, or superannuation fund compliance. The ruling gives no assurance about compliance with the Superannuation Industry (Supervision) Act 1993.
Who the ruling applies to
The ruling applies to policyholders who:
- purchased or had one of these policies assigned to them between 1 July 2026 and 30 June 2029, or
- purchased from 1 July 2023 and became an Australian tax resident during the 1 July 2026 to 30 June 2029 window, or
- receive a death benefit under one of these policies.
Protections under the ruling
Where a person correctly relies on this ruling and it applies to their situation, the ATO will not charge additional tax, penalties or interest on the matters the ruling covers.
The ruling only applies where the policy was purchased under the exact Terms and Conditions described in paragraphs 11 to 31 of the ruling. Where a scheme differs materially from those paragraphs, the protections in the ruling do not apply.
Legislative changes
The ATO does not automatically update participants when the law changes. Any legislative changes that occur after the ruling date may affect whether the ruling continues to apply.
Full ruling text
The complete ruling text, including the Appendix explanation, is available in the authorised PDF version on the ATO legal database: PR 2026/16 on the ATO legal database.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.