Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-30
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SUPERANNUATION
Division 307
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Key concepts relating to superannuation benefits
Subdivision 307-C
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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:
(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:
where:
(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.
View history note
Hide history noteThis 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 |
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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