Income Tax Assessment Act 1997
This section applies to a * superannuation lump sum if:
(a) it is not a * roll-over superannuation benefit; or
(b) it is a roll-over superannuation benefit that includes an * element untaxed in the fund, all or part of which will be included in the assessable income of the * superannuation provider in relation to the * superannuation fund into which the benefit is paid.
307-150(2)
However, this section applies to the * superannuation lump sum only to the extent that it is attributable to a * superannuation interest that existed just before 1 July 2007.
307-150(3)
If the * superannuation lump sum includes an * element untaxed in the fund:
(a) increase the * tax free component of the benefit by the amount that is the lesser of these amounts:
(i) the amount worked out under subsection (4); and
(ii) the amount of the element untaxed in the fund (apart from this section); and
(b) reduce the element untaxed in the fund by the lesser of those amounts.
307-150(4)
Work out the amount by applying the following formula:
Original tax free component and untaxed element | × | Number of days in the * service period for the lump sum that occurred before 1 July 1983 |
Number of days in the * service period for the lump sum |
original tax free component and untaxed element
is the sum of:
(a) the * tax free component of the * superannuation benefit (apart from this section); and
(b) the * element untaxed in the fund of the superannuation benefit (apart from this section).
307-150(5)
If the benefit is in part attributable to a * crystallised pre-July 83 amount, in working out the * tax free component of the * superannuation benefit (apart from this section) for the purposes of subsection (4), disregard the amount of the benefit that is attributable to the * crystallised segment of the * superannuation interest from which the benefit is paid.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.