INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-C - Components of a superannuation benefit  

SECTION 307-150   Modification in respect of superannuation lump sum with element untaxed in fund  

307-150(1)  
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

where:

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.


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