Eligible termination payment roll-overs post-June 1983 - untaxed element component
From 1 July 2007 there will be major reforms to simplify the superannuation system. Due to these reforms, the information in this product may change. Updated information about superannuation will be available from this website progressively.
If you have rolled over an eligible termination payment (ETP) into your own self-managed superannuation fund (SMSF), you are responsible for ensuring that your SMSF includes the post-June 1983 – untaxed element component in its tax return and, where applicable, in its member contribution statement (MCS).
This fact sheet explains:
what tax needs to be paid on rolled over eligible termination payments that include a post-June 1983 – untaxed elementcomponent,
who must pay the tax, and
under what circumstances the superannuation surcharge applies.
The post-June 1983 – untaxed element componentis that part of your ETP that has accumulated since 30 June 1983 that has not been subject to tax in a superannuation fund.
ETPs from employers will usually contain a post-June 1983 – untaxed element component.
ETPs from superannuation funds will only contain a post-June 1983 – untaxed elementcomponent if the superannuation fund does not pay tax on some or all of its income. The most common funds that do not pay tax on their income are Australian Government funds and some state government funds.
The roll-over is shown on the ETP roll-over statement. The statement breaks up the ETP into a number of different components, one of which is the post-June 1983 – untaxed element component.
Yes, tax is payable on the untaxed post-June 1983 component and it must be paid by the SMSF receiving the roll-over.
If you have rolled over the ETP into your own SMSF, you must ensure that the post-June 1983 – untaxed element component is included as a taxable contribution in your fund’s tax return. For the year ended 30 June 2003, the relevant amount should be included on the return at question 9a, label F.
Individuals do not have pay tax when they roll-over an ETP, so you do not need to include the roll-over amount in your individual tax return. Any tax for the individual will be paid later when the receiving superannuation fund pays you a benefit (either another ETP or a pension).
Yes, for ETPs rolled over from employers where the ETP includes a post-20 August 1996 component. The post-20 August 1996 component is shown at item 4 on the contributed amounts information part of the member contributions statement (MCS). The Superannuation member contributions statement (MCS) instruction guide for use from 1 July 2003 (NAT 2603) gives more information on this.
No, for ETPs rolled over from superannuation funds.
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