Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 307.290

Taxed and untaxed elements of death benefit superannuation lump sums

  (1)   This section applies to a * superannuation death benefit that is a * superannuation lump sum, in relation to which a deduction has been, or is to be, claimed under section   295 - 465 or 295 - 470.

Note 1:   Those sections allow deductions for insurance premiums that have been paid, and for liability for future benefits.

Note 2:   Deductions made under former section   279 or 279B of the Income Tax Assessment Act 1936 are treated for the purposes of this section as having been made under section   295 - 465 or 295 - 470 (see section   307 - 290 of the Income Tax (Transitional Provisions) Act 1997 ).

  (2)   The * taxable component of the * superannuation lump sum includes an element taxed in the fund worked out as follows:

  (a)   first, work out the amount under the formula in subsection   (3);

  (b)   next, reduce that amount (but not below zero) by the * tax free component (if any) of the superannuation lump sum.

  (3)   For the purposes of paragraph   (2)(a), the formula is:

Start formula Amount of *superannuation lump sum times start fraction Service days over Service days plus Days to retirement end fraction end formula

where:

"days to retirement" is the number of days from the day on which the deceased died to the deceased's * last retirement day.

"service days" is the number of days in the * service period for the lump sum.

  (4)   The element untaxed in the fund of the * taxable component is the balance of the taxable component.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback