What to include at item 13
Death benefit employment termination payments (ETPs) and superannuation lump sums paid to trustees of deceased estates are reported at this item.
To complete this question, use the following that your payer would have provided:
- PAYG payment summary – superannuation lump sum
- PAYG payment summary – employment termination payment.
Superannuation death benefits paid to a trustee of a deceased estate
Show at label V Death benefit superannuation lump sum where the beneficiary is a non-dependant the taxed element and at label W Death benefit superannuation lump sum where the beneficiary is a non-dependant the untaxed element.
If you have more than one payment summary, unless one or more is an amendment of an earlier payment summary, add the taxed elements together and show the total at label V and add the untaxed elements together and show the total at label W.
A superannuation death benefit paid to a trustee is taxed in the hands of the trustee in the same way that it would be taxed if paid directly to a beneficiary, that is, portions of the payment are subject to tax to the extent that the beneficiary is a dependant or a non-dependant of the deceased. There is no tax payable to the extent that the payment is made to a dependant or eligible non-dependant of the deceased.
Eligible non-dependants of deceased members of the Australian Defence Force and Australian police forces (including Australian Protective Services) who have died in the line of duty are to be treated as dependants.
The superannuation fund should have provided you with a PAYG payment summary – superannuation lump sum which shows the components of the payment.
The tax-free component of a superannuation death benefit received by a trustee is not subject to tax, regardless of whether the beneficiary is a dependant or non-dependant.
To the extent that a non-dependant is the beneficiary of the estate, the taxable component of the payment is assessable income.
Death benefit employment termination payments
To the extent that the beneficiary of the estate is a dependant, taxable component amounts up to the ETP cap ($235,000 for 2023–24) are not subject to tax and are not shown in the return.
Show at label X Death benefit employment termination payment where the beneficiary is a dependant amounts above the ETP cap, these amounts are assessable income.
To the extent that a non-dependant is the beneficiary of the estate, the taxable component of the payment is assessable income you should include at label Y Death benefit employment termination payment where the beneficiary is a non-dependant.
If you have more than one payment summary, unless one or more is an amendment of an earlier payment summary, add the components that are assessable income together and show them at the appropriate labels.
An ETP paid to a trustee is taxed in the hands of the trustee in the same way that it would be taxed if paid directly to a beneficiary, that is, the portions of the payment are subject to tax to the extent that the beneficiary is a dependant or a non-dependant of the deceased.
The employer should have provided you with a PAYG payment summary – employment termination payment which shows the components of the payment.
The tax-free component of an employment termination payment received by a trustee is not subject to tax, regardless of whether the beneficiary is a dependant or a non-dependant.
For more information, see Recipients of death benefit termination payments.
Continue to: 14 Other Australian income and 15 Total of items 5 to 14
Return to: Instructions to complete the Trust tax return 2024