Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:1_5:p19
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 19/23)
Character Range: 183700–186438

the service is exempt from income tax under section 23AF of that Act.

Note: If you received the lump sum after that period of 6 months, or the lump sum exceeds the vested amount, the lump sum will fall within section 305‑70.

 (2) For the purposes of subsection (1), treat the termination of employment, holding of office, or engagement as including:
 (a) retirement from the employment, office or engagement; and
 (b) cessation of the employment, office or engagement because of death.

Lump sums to which sections 305‑60 and 305‑65 do not apply

305‑70  Lump sums received more than 6 months after Australian residency or termination of foreign employment etc.

Superannuation lump sums to which section applies

 (1) This section applies to a *superannuation lump sum you receive from a *foreign superannuation fund if:
 (a) you are an Australian resident when you receive the lump sum; and
 (b) sections 305‑60 and 305‑65 do not apply to the lump sum.

Assessable part

 (2) Include in your assessable income so much of the lump sum (excluding any amount mentioned in subsection (4)) as equals:
 (a) your *applicable fund earnings (worked out under section 305‑75); or
 (b) if you have made a choice under section 305‑80—your applicable fund earnings, less the amount covered by the choice.

Note: Under section 305‑80, if your lump sum is paid into a complying superannuation plan, you can choose to have some or all of the applicable fund earnings excluded from your assessable income. The amount you choose is included in the assessable income of the plan: see section 295‑200.

Non‑assessable, non‑exempt part

 (3) The remainder of the lump sum is not assessable income and is not *exempt income.

Amount paid into another foreign superannuation fund

 (4) Any part of the lump sum that is paid into another *foreign superannuation fund is not assessable income and is not *exempt income.

Note: However, your applicable fund earnings under section 305‑75 in relation to a later lump sum payment out of the other foreign superannuation fund may include an amount (previously exempt fund earnings) attributable to the lump sum.

305‑75  Lump sums—applicable fund earnings

 (1) This section applies if you need to work out an amount (your applicable fund earnings) in relation to a *superannuation lump sum to which section 305‑70 applies that you receive from a *foreign superannuation fund.

If you were an Australian resident at all times

 (2) If you were an Australian resident at all times during the period to which the lump sum relates, the amount of your applicable fund earnings is the amount (not less than zero) worked out as follows:
 (a) work out the total of the following amounts:
 (i) the part of the lump