Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-C - Components of a superannuation benefit  

SECTION 307-145   Modification for disability benefits  

307-145(1)    
Work out the tax free component of the *superannuation benefit under subsection (2) if the benefit is a *superannuation lump sum and a *disability superannuation benefit.

Note:

This section does not apply to an unclaimed money payment.

307-145(2)    
The tax free component is the sum of:

(a) the *tax free component of the benefit worked out apart from this section; and

(b) the amount worked out under subsection (3).

However, the tax free component cannot exceed the amount of the benefit.

307-145(3)    
Work out the amount by applying the following formula:

Amount of benefit     ×

Days to retirement         Service days   +   Days to retirement

where:

days to retirement
is the number of days from the day on which the person stopped being capable of being *gainfully employed to his or her *last retirement day.

service days
is the number of days in the *service period for the lump sum.

307-145(4)    
The balance of the *superannuation benefit is the taxable component of the benefit.