Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:2_1:p3
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 3/11)
Character Range: 276047–278766

section 82‑65 or 82‑70).

Note 3: Certain other life benefit termination payments made before 1 July 2012 may be treated as earlier payments under paragraph (4)(b): see section 82‑10H of the Income Tax (Transitional Provisions) Act 1997.

Subdivision 82‑B—Employment termination payments: death benefits

Guide to Subdivision 82‑B

82‑60  What this Subdivision is about

      If you receive a death benefit termination payment after the death of a person, part of the payment may be tax free (the tax free component).
      You are entitled to a tax offset on the remaining part of the payment (the taxable component), subject to limitations.
      The extent of your entitlement to the offset depends on whether or not you were a death benefits dependant of the deceased, and on the total amount of payments you receive in consequence of the same employment termination.
      If a death benefit termination payment is payable to the trustee of the estate of the deceased for the benefit of another person, the payment is taxed in the hands of the trustee in the same way as it would be taxed if it had been paid directly to the other person.

Table of sections

Operative provisions

82‑65 Death benefits for dependants
82‑70 Death benefits for non‑dependants
82‑75 Death benefits paid to trustee of deceased estate

Operative provisions

82‑65  Death benefits for dependants

Tax free component

 (1) The *tax free component of a *death benefit termination payment that you receive after the death of a person of whom you are a *death benefits dependant is not assessable income and is not *exempt income.

Taxable component

 (2) If you receive a *death benefit termination payment after the death of a person of whom you are a *death benefits dependant:
 (a) the part of the *taxable component of the payment mentioned in subsection (3) is not assessable income and is not *exempt income; and
 (b) the remainder of the taxable component (if any) of the payment is assessable income.

Note: The remainder of the taxable component is taxed at the top marginal rate in accordance with the Income Tax Rates Act 1986.

 (3) The amount is so much of the *taxable component of the payment as does not exceed the *ETP cap amount.

Note: For the ETP cap amount, see section 82‑160.

 (4) The *ETP cap amount is reduced (but not below zero) by the amount worked out under subsection (3) for each *death benefit termination payment (if any) you have received earlier in consequence of the same employment termination, whether in the income year or an earlier income year.

Note 1: See subsection 82‑75(2) for the tax treatment of any amount by which you may have benefited from an employment termination payment to the