Income Tax Assessment Act 1997



Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-E - Elements taxed and untaxed in the fund of the taxable component of superannuation benefit  

SECTION 307-290   Taxed and untaxed elements of death benefit superannuation lump sums  

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 .

Note 1:

Those sections allow deductions for insurance premiums that have been paid, and for liability for future benefits.

Note 2:

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.


For the purposes of paragraph (2)(a), the formula is:

  Amount of *superannuation lump sum ×           Service days          
Service days + Days to retirement


days to retirement
is the number of days from the day on which the deceased died to the deceased ' s *last retirement day.

service days
is the number of days in the *service period for the lump sum.

The element untaxed in the fund of the *taxable component is the balance of the taxable component.

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