Tax certainty for deceased estates

On 3 June 2013 Treasury released amended regulations to provide tax certainty to the beneficiaries of deceased estates.

Investment earnings derived by superannuation funds from assets supporting pensions are exempt from tax. On 31 July 2013, Taxation Ruling 2013/5 Income Tax: when a superannuation income stream commences and ceases was published. The ruling provides information on when a pension commences and when it ceases. One of the most common circumstances for a pension ceasing is when the recipient of the pension dies.

Recent amendments to regulations, valid from the 2012-13 income year, give certainty to family members about the taxation of their relative's super and address practical difficulties faced by super funds. These regulations will ensure that members receiving a pension at the time of their death receive tax exemption for earnings on assets supporting a superannuation pension (ECPI) (in the period between their death and the benefits being paid out of the fund). These amendments require benefits to be paid out of the fund as soon as is practicable following the death of the member.

Media release

For more information refer to the following:

Media release number 001/2013External Link, Government Acts to Ensure Tax Certainty for Deceased Estates – Release of Draft Regulation issued on 29 January 2013 by the Treasurer.

Media release number 069/2012External Link, Government reforms boost super savings and lower industry costs, issued on 22 October 2012 by the Minister for Financial Services and Superannuation.

Legislation and supporting material

The regulation received royal assent and registered on 3 June 2013:

Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013External Link

Explanatory Statement.External Link

Further information

More information

End of further information
    Last modified: 28 Jan 2014QC 26632