Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 10/12)
Character Range: 4815636–4818487

*taxable component of the *superannuation lump sum includes an element taxed in the fund worked out as follows:
 (a) first, work out the amount under the formula in subsection (3);
 (b) next, reduce that amount (but not below zero) by the *tax free component (if any) of the superannuation lump sum.
 (3) For the purposes of paragraph (2)(a), the formula is:
where:
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 *taxable component of 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 taxable component 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.

307‑297  Public sector superannuation schemes—elements set by regulations
 (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) Despite any other provision of this Subdivision, the *taxable component of the *superannuation benefit consists of an element untaxed in the fund equal to