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24 (Superannuation)[1]

Benefits ► a superannuation benefit may comprise

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Unformatted text preview: benefits ► A superannuation benefit may comprise: Tax-free component: Contributions segment Crystallised segment Taxable component: Element taxed in the fund Element untaxed in the fund ► Taxation rules distinguish between: Lump sum benefits Income stream benefits Foundations of Taxation Law [¶24.11](b) Foundations of Taxation Law ► Superannuation benefits paid to members from a complying superannuation plan are taxed in accordance with rules in Div 301 ITAA97 ► Superannuation benefits paid to a person as a result of the death of another person are taxed in accordance with rules in Div 302 ITAA97 ► Capital gains and capital losses relating to benefits received from superannuation funds are disregarded Taxation of superannuation Taxation of superannuation benefits (cont) benefits (cont) © CCH Australia Limited Foundations of Taxation Law [¶24.11](c) Foundations of Taxation Law ► Tax-free component is exempt ► Taxable component is exempt provided paid to a member who is at least 60 ► Different rules apply where member is under 60 and depend on whether: The member has reached their preservation age The benefit is a lump sum or income stream ► Special rules apply to death benefits Basic benefit taxation rules Basic benefit taxation rules (element taxed in the fund) (element taxed in the fund) © CCH Australia Limited Foundations of Taxation Law [¶24.12] Foundations of Taxation Law © CCH Australia Limited Marriage breakdown Marriage breakdown ► Part VIIIB of Family Law Act 1975 : Treats superannuation interests as property for the purposes of matrimonial causes Allows for the “splitting” and “flagging” of such interests ► Lump sums and income streams resulting from a payment split are taxed in accordance with the general benefit taxation rules...
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benefits ► A superannuation benefit may comprise Tax-free...

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