S 295-485 repealed by No 81 of 2016, s 3 and Sch 9 item 3, effective 1 January 2017 and applicable in relation to a lump sum that is:
(a) paid because of the death of a person that occurred on or after 1 July 2017; or
(b) paid on or after 1 July 2019.
Note: For paragraph (b), it does not matter when the person, in relation to whom the lump sum is payable, died.
S 295-485 formerly read:
SECTION 295-485 Deductions for increased amount of superannuation lump sum death benefit
295-485(1)
An entity that is a *complying superannuation fund, or a *complying approved deposit fund, and has been since 1 July 1988 (or since it came into existence if that was later) can deduct an amount under this section if:
(a)
it pays a *superannuation lump sum because of the death of a person to the trustee of the deceased
'
s estate or an individual who was a *spouse, former spouse or *child of the deceased at the time of death or payment; and
(b)
it increases the lump sum by an amount, or does not reduce the lump sum by an amount (the
tax saving amount
) so that the amount of the lump sum is the amount that the fund could have paid if no tax were payable on amounts included in assessable income under Subdivision 295-C.
Note:
Paragraph (1)(b) has effect as if the reference to amounts included in assessable income under Subdivision 295-C included a reference to amounts included in assessable income under former section 274 of the
Income Tax Assessment Act 1936
: see section 295-485 of the
Income Tax (Transitional Provisions) Act 1997
.
History
S 295-485(1) amended by
No 143 of 2007
, s 3 and Sch 5 item 6, by inserting the note at the end, applicable to the 2007-2008 income year and later years.
295-485(2)
The fund can deduct the amount in the income year in which the lump sum is paid.
295-485(3)
The amount the fund can deduct is:
Tax saving amount
Low tax component rate |
where:
low tax component rate
is the rate of tax imposed on the *low tax component of the fund
'
s taxable income for the income year.
Note:
The deduction is designed to compensate the fund for the tax payable on the contributions that are used to fund the lump sum.
History
Definition of
"
low tax component rate
"
inserted by
No 143 of 2007
, s 3 and Sch 5 item 44, effective 15 March 2007 and applicable to the 2007-2008 income year and later years.
low tax component tax rate
(Repealed by
No 143 of 2007
)
History
Definition of
"
low tax component tax rate
"
repealed by
No 143 of 2007
, s 3 and Sch 5 item 45, effective 15 March 2007 and applicable to the 2007-2008 income year and later years. The definition formerly read:
low tax component tax rate
is the rate of tax imposed on the *low tax component of the fund
'
s taxable income for the income year.
295-485(4)
The amount the fund can deduct for a *superannuation lump sum paid because of the death of a person to the trustee of the deceased
'
s estate is so much of the subsection (3) amount as is appropriate having regard to the extent to which individuals referred to in paragraph (1)(a) can reasonably be expected to benefit from the estate.
S 295-485 inserted by
No 9 of 2007
, s 3 and Sch 1 item 1, applicable to the 2007-2008 income year and later years.
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