Income Tax Assessment Act 1997
This section applies to a *superannuation death benefit that is a *superannuation lump sum, in relation to which a deduction has been, or is to be, claimed under section 295-465 or 295-470 .
Those sections allow deductions for insurance premiums that have been paid, and for liability for future benefits.
Deductions made under former section 279 or 279B of the Income Tax Assessment Act 1936 are treated for the purposes of this section as having been made under section 295-465 or 295-470 (see section 307-290 of the Income Tax (Transitional Provisions) Act 1997 ).
The *taxable component of the *superannuation lump sum includes an element taxed in the fund worked out as follows:
(a) first, work out the amount under the formula in subsection (3);
(b) next, reduce that amount (but not below zero) by the *tax free component (if any) of the superannuation lump sum. 307-290(3)
For the purposes of paragraph (2)(a), the formula is:
|Amount of *superannuation lump sum||×||
Service days + Days to retirement
The element untaxed in the fund of the *taxable component is the balance of the taxable component.