OPS 2007/8

---

AUSTRALIAN GOVERNMENT

This legislative instrument is repealed by Taxation Administration Act - Variation to the rate of withholding from lump sum superannuation member benefits for certain recipients with a terminal medical condition

Taxation Administration Act 1953

Made this instrument under section 15-15 of Schedule 1 to the Taxation Administration Act 1953.

Citation (see Note 1)

1. This instrument is the Taxation Administration Act - Variation to the rate of withholding for certain terminally ill recipients of lump sum superannuation member benefits.

Commencement (see Note 1)

2. This instrument commences on 12 September 2007 and ceases to have effect on 1 July 2008.

Application of instrument

3. This variation ensures that withholding is not required from payments made to terminally ill recipients of lump sum superannuation member benefits in circumstances where the payment will not be subject to income tax as a result of law changes which were announced on 11 September 2007 but not yet enacted.

Variation to the rate of withholding

4. This instrument varies to nil the amount required to be withheld from a withholding payment which is:

•

a superannuation member benefit within the meaning of subsection 307-5(2) of the Income Tax Assessment Act 1997, and

•

a superannuation lump sum within the meaning of section 307-65 of the Income Tax Assessment Act 1997, and

•

paid to a member in accordance with the payment standards prescribed in:

•

in the case of a benefit paid from a complying superannuation fund - subsection 31(1) of the Superannuation Industry (Supervision) Act 1993, or

•

in the case of a benefit paid from an approved deposit fund - subsection 32(1) of that Act, or

•

in the case of a benefit paid from a retirement savings account - subsection 38(2) of the Retirement Savings Accounts Act 1997

in circumstances where the member is terminally ill.

A payee will be taken to be terminally ill if it is certified by two medical practitioners (at least one of these a specialist) that they are suffering from an illness which in the normal course would result in death within a period of 12 months.

Notes to the Variation to the rate of withholding for certain terminally ill recipients of lump sum superannuation member benefits

---

Dated 25 September 2007

Erin Holland
Deputy Commissioner of Taxation

---

Registration Number: F2007C00768

Registration Date: 12 October 2007

Related Explanatory Statements:

OPS 2007/8 - Explanatory statement

---