INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 295 - Taxation of superannuation entities  

Subdivision 295-G - Deductions  

Death or disability benefits

SECTION 295-460   295-460   Benefits for which deductions are available  


Sections 295-465 (about deductions for complying funds for insurance premiums), 295-470 (about deductions for complying funds for future liability to pay benefits) and 295-475 (about deductions for *RSA providers for insurance premiums) apply to these benefits:


(a) a *superannuation death benefit;


(aa) a benefit consisting of an amount payable to an individual because a *terminal medical condition exists in relation to the individual;


(b) a *disability superannuation benefit;


(c) a benefit consisting of an amount payable to an individual under an income stream because of the individual ' s temporary inability to engage in *gainful employment, that is payable for no longer than:


(i) 2 years; or

(ii) if an approval under section 62 of the Superannuation Industry (Supervision) Act 1993 is in force for benefits of that kind and the approval specifies a longer maximum period - that longer period; or

(iii) if there is no such approval in force - a longer period allowed by the Commissioner.
Note 1:

The fund can deduct amounts in relation to these benefits under either section 295-465 or 295-470 , but not both.

Note 2:

The taxable component of the superannuation lump sums will contain an element untaxed in the fund: see section 307-290 .


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