Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:1_6:p3
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 3/3)
Character Range: 131895–134068

of superannuation lump sum death benefit

 (1) An entity that is a *complying superannuation fund, or a *complying approved deposit fund, and has been since 1 July 1988 (or since it came into existence if that was later) can deduct an amount under this section if:
 (a) it pays a *superannuation lump sum because of the death of a person to the trustee of the deceased's estate or an individual who was a *spouse, former spouse or child of the deceased at the time of death or payment; and
 (b) it increases the lump sum by an amount, or does not reduce the lump sum by an amount (the tax saving amount) so that the amount of the lump sum is the amount that the fund could have paid if no tax were payable on amounts included in assessable income under Subdivision 295‑C.

 (2) The fund can deduct the amount in the income year in which the lump sum is paid.

 (3) The amount the fund can deduct is:

  where:

low tax component tax rate is the rate of tax imposed on the *low tax component of the fund's taxable income for the income year.

Note: The deduction is designed to compensate the fund for the tax payable on the contributions that are used to fund the lump sum.

 (4) The amount the fund can deduct for a *superannuation lump sum paid because of the death of a person to the trustee of the deceased's estate is so much of the subsection (3) amount as is appropriate having regard to the extent to which individuals referred to in paragraph (1)(a) can reasonably be expected to benefit from the estate.

Other deductions

295‑490  Other deductions

 (1) An entity can deduct amounts as set out in this table.

Note: For an explanation of the acronyms used, see section 295‑35.

Other deductions
Item              This entity:                                                                                              Can deduct:                                                                                                                                                                                                                                                                                                              For the income year in which: