Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 301.20

  (1)   If you are under 60 years but have reached your * preservation age when you receive a * superannuation lump sum, the * taxable component of the lump sum is assessable income.

Note 1:   For taxable component , see Subdivision   307 - C.

Note 2:   If your lump sum includes an element untaxed in the fund, see Subdivision   301 - C.

  (2)   You are entitled to a * tax offset that ensures that the rate of income tax on the amount mentioned in subsection   (3) does not exceed 0%.

  (3)   The amount is so much of the total of the * taxable components included in your assessable income for the income year under subsection   (1) as does not exceed your * low rate cap amount (see section   307 - 345) for the income year.

  (4)   You are entitled to a * tax offset that ensures that the rate of income tax on the amount mentioned in subsection   (5) does not exceed 15%.

  (5)   The amount is so much of the total of the * taxable components included in your assessable income for an income year under subsection   (1) as exceeds your * low rate cap amount for the income year.

Note:   This amount will be nil if the total of the taxable components falls short of your low rate cap amount for the income year.