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Edited version of private ruling
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Ruling
Subject: Taxation of superannuation benefits
Question
Will the taxation treatment of your superannuation benefits change if you return to work?
Answer: No.
This ruling applies for the following period:
2010-11 income year
The scheme commences on:
1 July 2010
Relevant facts
You retired from employment on a specific date during the 2010-11 income year.
You were paid superannuation benefits by your fund manager, on the basis of your retirement. The superannuation benefits are invested in bank term deposits.
At the time of retirement you had no intention of ever returning to work and you completed a Statutory Declaration to that effect with the superannuation fund when you were paid your benefits.
You retired from work for the following reasons:
· You were diagnosed with a serious illness during the 2010-11 income year and underwent significant surgery during the 2010-11 income year, being off work for recovery purposes during the 2010-11 income year.
· You are over 60 years of age.
Your former employer has now asked you to return to work on a part time/casual basis because of difficulty in locating a replacement for you.
You would like to return to work.
You are over 60 years of age.
Relevant legislative provisions
Section 82-130 of the Income Tax Assessment Act 1997
Reasons for decision
Summary
The taxation treatment of your superannuation benefits will not change if you return to work.
Detailed reasoning
Based on the information provided, it was your intention to retire permanently from the work force on a specific date during the 2010-11 income year. You are over 60 years of age and also satisfied a condition of release in order to access your superannuation benefits. You also intended to retire from the workforce as you were diagnosed with a serious illness during the 2010-11 income year, had subsequent surgery during the 2010-11 income year, and was off work for recovery purposes during the 2010-11 income year. As a result you were paid superannuation benefits from your fund manager.
However, your circumstances have changed and you now wish to re enter the workforce.
In this case, the fact that you re enter the work force on a part time or a full time basis will not affect the tax treatment of the superannuation benefits as it was your intention to legitimately retire from the workforce when you received the superannuation benefits from your fund manager.