Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:1_8:p9
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 9/11)
Character Range: 221086–223911

(3) For the purposes of paragraph (2)(a), the formula is:

days to retirement is the number of days from the day on which the deceased died to the deceased's *last retirement day.

service days is the number of days in the *service period for the lump sum.

 (4) The element untaxed in the fund of the *taxable component is the balance of the taxable component.

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

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

 (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.

 (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 *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 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.

Subdivision 307‑F—Low rate cap and untaxed plan cap amounts

Table of sections

307‑345 Low rate cap amount
307‑350 Untaxed plan cap amount

307‑345  Low rate cap amount

Starting amount

 (1) Your low rate cap amount for the 2007‑2008 income year is $140,000.

Note: However, if you became entitled to a rebate under the corresponding provision of the Income Tax Assessment Act 1936, see section 307‑345 of the Income Tax (Transitional Provisions) Act 1997.

Reductions and increases

 (2) If you receive one or more *superannuation member benefits that are *superannuation lump sums in an income year, reduce your low rate cap amount for the next income year (but not below zero) by the total of the amounts that: