Income Tax Assessment Act 1997



Division 295 - Taxation of superannuation entities  

Subdivision 295-G - Deductions  

Death or disability benefits

SECTION 295-470   Complying funds - deductions for future liability to pay benefits  

A *complying superannuation fund can deduct an amount under this section for an income year if:

(a) the trustee of the fund makes a choice under subsection 295-465(4) and the choice applies to the income year; and

(b) the trustee pays:

(i) a benefit referred to in paragraph 295-460 (a), (aa) or (b) for the income year in consequence of the termination of a member's employment; or

(ii) a benefit referred to in paragraph 295-460(c) .


The amount the fund can deduct is:

Benefit amount × Future service days
Total service days


benefit amount

(a) for a benefit that is a *superannuation lump sum - the amount of the lump sum; or

(b) for a benefit that is a *superannuation income stream - the *value of the *superannuation interest supporting the income stream; or

(c) for a benefit referred to in paragraph 295-460(c) - the total of the amounts paid during the income year.

future service days
is the number of days in the period starting when:

(a) the termination happened; or

(b) for a benefit referred to in paragraph 295-460(c) - the member became unable to engage in *gainful employment;

and ending on the member's *last retirement day.

total service days
is the sum of future service days and the number of days in:

(a) for a benefit that is a *superannuation lump sum - the *service period for the superannuation lump sum; or

(b) for another benefit - the period ending on the first day of the period to which the first payment of the benefit relates and starting on the earliest of:

(i) the day on which the member joined the relevant *superannuation fund; and

(ii) the first day of the period of employment to which the benefit relates (including a qualifying period before the member could join the fund and any period when the member was not a member of the fund); and

(iii) the day applicable under subsection (3).

The applicable day is the first day of the *service period for a *superannuation lump sum that is a *roll-over superannuation benefit if all or part of the *value of the other benefit is attributable to the roll-over superannuation benefit.


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