Private ruling: Death Benefit - Dependency
Date of advice: 25 August 2017
Published: December 2017
Ruling period: Income year ended 30 June 201D
Date scheme commenced: 1 July 201C

Ruling: Q1: Is a person (the Beneficiary) a death benefits dependant of a person who has died (the Deceased) as defined in section 302-195 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes.

Relevant facts and circumstances: The Deceased died in mid 201B. The Beneficiary is a child of the Deceased. The Deceased was married and their spouse had passed away. The Deceased had suffered for more than five years from an illness and from late 201A their health was progressively deteriorated. The Deceased suffered from multiple illnesses. The Deceased was on multiple medications and had various surgeries which affected their spine. The Beneficiary was committed to providing care and support to the Deceased for as long as necessary. There was an expectation that this period would last several years at least. While the Beneficiary lived with the Deceased, the Beneficiary provided the Deceased with frequent and ongoing domestic support and personal care; the various duties have been documented. The trustee of the Deceased’s estate has received a superannuation death benefit from the Superannuation Fund

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 302 - 195 | Income Tax Assessment Act 1997 Section 302 - 200 All legislative references are to the ITAA 1997 unless otherwise stated.

Reasons for decision: Summary: The Taxpayer is considered to be a death benefits dependant for the purposes of section 302-195. | Detailed Reasoning - Detailed reasoning: In accordance with section 302-195, a death benefits dependant , of a person who has died, is: (a) the deceased person's *spouse or former spouse; or (b) the deceased person's *child, aged less than 18; or (c) any other person with whom the deceased person had an interdependency relationship under section 302-200 just before he or she died; or (d) any other person who was a dependant of the deceased person just before he or she died. *To find definitions of asterisked terms, see the Dictionary, starting at section 995-1. In this case, paragraphs 302-195(1)(a), (b) and (d) do not apply because the Deceased is a parent of the Beneficiary and the facts do not indicate that they were a dependant of the Deceased. Therefore, the Beneficiary will be a death benefits dependant of the Deceased only if the Beneficiary had an interdependency relationship with the Deceased just before they died. Under subsection 302-200(1), two persons (whether or not related by family) have an ' interdependency relationship’ if: (a) they have a close personal relationship; and (b) they live together; and (c) one or each of them provides the other with financial support; and (d) one or each of them provides the other with domestic support and personal care. Based on the evidence provided, it is considered that the Beneficiary was in an interdependency relationship with the Deceased just before they died because: ● they had a close personal relationship; ● they lived together; ● the Deceased provided the Beneficiary with financial ● The Beneficiary provided the Deceased with domestic support and personal care as required by subsection 302-200(1). Consequently, the Beneficiary is a death benefits dependant for the purposes of section 302-195.