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  • Removal of anti-detriment deduction

    Previously, the anti-detriment provision enables a fund to claim a deduction in their tax return for a top-up payment made as part of a death benefit payment where the beneficiary is the dependant of the person. The top-up amount represents a refund of a member's lifetime super contribution tax payments into an estate. Effective 1 July 2017, the government removed this provision and super funds are no longer able to claim this deduction. This change will ensure consistent treatment of lump sum death benefits across all super funds.

    Super funds may claim a deduction for an anti-detriment payment as part of a death benefit if a fund member dies on or before 30 June 2017. The fund has until 30 June 2019 to pay the benefit. Funds cannot include anti-detriment payments as part of a death benefit if the member dies on or after 1 July 2017.

    See also:

    Summary impacts for APRA-regulated funds

    • You can't claim a deduction if members die on, or after 1 July 2017.
    • If a member dies on or before 30 June 2017, the anti-detriment payment must be made before 30 June 2019 to be eligible for the deduction.
    Last modified: 20 Mar 2018QC 51317