Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

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 307-295   Superannuation benefits from public sector superannuation schemes may include untaxed element  

307-295(1)  
This section applies to a *superannuation benefit that is paid from a *public sector superannuation scheme that is not a *constitutionally protected fund.

307-295(2)  
If the *superannuation benefit paid is not sourced to any extent from contributions made into a *superannuation fund or earnings on such contributions, the *taxable component of the superannuation benefit consists wholly of an element untaxed in the fund .

307-295(3)  


If the benefit is a *superannuation lump sum that is partly sourced from contributions made into a *superannuation fund or earnings on such contributions, the element taxed in the fund and the element untaxed in the fund of the *taxable component of the benefit are worked out as follows: Method statement

Step 1.

Subdivide the *taxable component of the *superannuation lump sum (the original benefit ) into 2 notional superannuation lump sums as follows:

  • (a) the amount sourced from contributions made into a *superannuation fund or earnings on such contributions (the fund benefit );
  • (b) the remainder of the taxable component of the lump sum (the non-fund benefit ).

  • Step 2.

    The fund benefit consists of an element taxed in the fund , an element untaxed in the fund , or both, as worked out under this Subdivision.


    Step 3.

    The non-fund benefit consists wholly of an element untaxed in the fund .


    Step 4.

    The element taxed in the fund of the original benefit equals the element taxed in the fund of the fund benefit.


    Step 5.

    The element untaxed in the fund of the original benefit is the sum of the elements untaxed in the fund worked out under steps 2 and 3.


     

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