Private ruling: Superannuation lump sum
Date of advice: 6 February 2017
Published: July 2017
Ruling period: Year ended 30 June 201Y
Date scheme commenced: 1 July 201X

Ruling: Q1: Is any part of the superannuation lump sum payment included in your client's assessable income in their tax return for the 201X-1Y income year? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 301-10.

Reasons for decision: Detailed Reasoning - Summary of decision: As your client is aged over 60, they do not have to enter the tax-free component or the taxed element part of the taxable component of their superannuation payment on their tax return for the 201X-1Y income year. | Detailed Reasoning - Detailed reasoning: Lump sum payments made from a superannuation fund are called superannuation lump sum benefits, and these benefits will generally comprise: ● a tax free component ; and ● a taxable component , which may include both or one of the following: ● an element taxed in the fund; and/or ● an element untaxed in the fund. Section 301-10 of the Income Tax Assessment Act 1997 (ITAA 1997) applies to recipients of superannuation benefits who are aged 60 or above. Section 301-10 of the ITAA 1997 states that if the recipient is 60 years or over when they receive a superannuation benefit, the benefit is not assessable income and not exempt income. A recipient who is 60 years or over must include the untaxed element of the taxable component of their superannuation payment as assessable income on their tax return. A recipient who is 60 years or over does not have to enter the tax-free component or the taxed element part of the taxable component of their superannuation payment on their tax return.

Relevant facts: Your client is over 60 years of age. | In the 201X-1Y income year your client received a superannuation lump sum payment from their superannuation scheme (the Scheme). | A PAYG payment summary - superannuation lump sum from the Scheme shows that the payment comprises of a taxable component - taxed element and a tax free component. No tax was withheld from the payment.