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Edited version of your written advice

Authorisation Number: 1051258988769

Date of advice: 25 August 2017

Ruling

Subject: Death Benefit - Dependency

Question

Is a person (the Beneficiary) a death benefits dependant of a person who has died (the Deceased) as defined in section 302-195 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

This ruling applies for the following period:

Income year ended 30 June 201D

The scheme commences on:

1 July 201C

Relevant facts and circumstances

The Deceased died in mid 201B.

The Beneficiary is a child of the Deceased.

The Deceased was married and their spouse had passed away.

The Deceased had suffered for more than five years from an illness and from late 201A their health was progressively deteriorated.

The Deceased suffered from multiple illnesses.

The Deceased was on multiple medications and had various surgeries which affected their spine.

The Beneficiary was committed to providing care and support to the Deceased for as long as necessary. There was an expectation that this period would last several years at least.

While the Beneficiary lived with the Deceased, the Beneficiary provided the Deceased with frequent and ongoing domestic support and personal care; the various duties have been documented.

The trustee of the Deceased’s estate has received a superannuation death benefit from the Superannuation Fund

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 302-195

Income Tax Assessment Act 1997 Section 302-200

All legislative references are to the ITAA 1997 unless otherwise stated.

Reasons for decision

The Taxpayer is considered to be a death benefits dependant for the purposes of section 302-195.

Detailed reasoning

In accordance with section 302-195, a death benefits dependant, of a person who has died, is:

In this case, paragraphs 302-195(1)(a), (b) and (d) do not apply because the Deceased is a parent of the Beneficiary and the facts do not indicate that they were a dependant of the Deceased. Therefore, the Beneficiary will be a death benefits dependant of the Deceased only if the Beneficiary had an interdependency relationship with the Deceased just before they died.

Under subsection 302-200(1), two persons (whether or not related by family) have an 'interdependency relationship’ if:

Based on the evidence provided, it is considered that the Beneficiary was in an interdependency relationship with the Deceased just before they died because:

Consequently, the Beneficiary is a death benefits dependant for the purposes of section 302-195.


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