INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 301 - Superannuation member benefits paid from complying plans etc.  

Subdivision 301-B - Member benefits: general rules  

Member benefits - recipient aged over preservation age and under 60

SECTION 301-20   Superannuation lump sum - taxable component taxed at 0% up to low rate cap amount, 15% on remainder  

301-20(1)  
If you are under 60 years but have reached your *preservation age when you receive a *superannuation lump sum, the *taxable component of the lump sum is assessable income.

Note 1:

For taxable component , see Subdivision 307-C .

Note 2:

If your lump sum includes an element untaxed in the fund, see Subdivision 301-C.

301-20(2)  
You are entitled to a *tax offset that ensures that the rate of income tax on the amount mentioned in subsection (3) does not exceed 0%.

301-20(3)  
The amount is so much of the total of the *taxable components included in your assessable income for the income year under subsection (1) as does not exceed your *low rate cap amount (see section 307-345 ) for the income year.

301-20(4)  
You are entitled to a *tax offset that ensures that the rate of income tax on the amount mentioned in subsection (5) does not exceed 15%.

301-20(5)  
The amount is so much of the total of the *taxable components included in your assessable income for an income year under subsection (1) as exceeds your *low rate cap amount for the income year.

Note:

This amount will be nil if the total of the taxable components falls short of your low rate cap amount for the income year.


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