Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 305 - Superannuation benefits paid from non-complying superannuation plans  

Subdivision 305-B - Superannuation benefits from foreign superannuation funds  

Lump sums received within 6 months after Australian residency or termination of foreign employment etc.

SECTION 305-65   Lump sums tax free - Australian resident period  

305-65(1)    
A *superannuation lump sum you receive is not assessable income and is not *exempt income if:

(a) you receive it in consequence of:

(i) the termination of your employment as an employee, or as the holder of an office, in a foreign country; or

(ii) the termination of your engagement on qualifying service on an approved project (within the meaning of section 23AF of the Income Tax Assessment Act 1936 ), in relation to a foreign country; and

(b) it relates only to the period of that employment, holding of office, or engagement; and

(c) you were an Australian resident during the period of the employment, holding of office or engagement; and

(d) you receive the lump sum within 6 months after the termination; and

(e) the lump sum is not exempt from taxation under the law of the foreign country; and

(f) for a period of employment or holding an office - your foreign earnings from the employment or office are exempt from income tax under section 23AG of the Income Tax Assessment Act 1936 ; and

(g) for a period of engagement on qualifying service on an approved project - your eligible foreign remuneration from 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, the lump sum will fall within section 305-70 .

305-65(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.