Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 12/20)
Character Range: 1582907–1585590

a reference to so much of the taxable component as relates to the part of the payment that is not an excluded payment.
 (8) Despite subsections (4) and (7), the amount mentioned in subsection (4) in relation to the payment must not exceed either of the following:
 (a) the *ETP cap amount reduced (but not below zero) by the amount worked out under subsection (4) for each *life benefit termination payment you have received earlier in the income year;
 (b) the ETP cap amount reduced (but not below zero) by the amount worked out under subsection (4) for each life benefit termination payment you have received earlier in consequence of the same employment termination (whether in the income year or an earlier income year).

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