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INCOME TAX ASSESSMENT ACT 1997 - SECT 307.150 Modification in respect of superannuation lump sum with element untaxed in fund

INCOME TAX ASSESSMENT ACT 1997 - SECT 307.150

Modification in respect of superannuation lump sum with element untaxed in fund

  (1)   This section applies to a * superannuation lump sum if:

  (a)   it is not a * roll - over superannuation benefit; or

  (b)   it is a roll - over superannuation benefit that includes an * element untaxed in the fund, all or part of which will be included in the assessable income of the * superannuation provider in relation to the * superannuation fund into which the benefit is paid.

  (2)   However, this section applies to the * superannuation lump sum only to the extent that it is attributable to a * superannuation interest that existed just before 1   July 2007.

  (3)   If the * superannuation lump sum includes an * element untaxed in the fund:

  (a)   increase the * tax free component of the benefit by the amount that is the lesser of these amounts:

  (i)   the amount worked out under subsection   (4); and

  (ii)   the amount of the element untaxed in the fund (apart from this section); and

  (b)   reduce the element untaxed in the fund by the lesser of those amounts.

  (4)   Work out the amount by applying the following formula:

Start formula Original tax free component and untaxed element times start fraction Number of days in the *service period for the lump sum that occurred before 1 July 1983 over Number of days in the *service period for the lump sum end fraction end formula

where:

"original tax free component and untaxed element" is the sum of:

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

  (b)   the * element untaxed in the fund of the superannuation benefit (apart from this section).

  (5)   If the benefit is in part attributable to a * crystallised pre - July 83 amount, in working out the * tax free component of the * superannuation benefit (apart from this section) for the purposes of subsection   (4), disregard the amount of the benefit that is attributable to the * crystallised segment of the * superannuation interest from which the benefit is paid.

Table of sections

307 - 200   Regulations relating to meaning of superannuation interests

307 - 205   Value of superannuation interest

307 - 210   Tax free component of superannuation interest

307 - 215   Taxable component of superannuation interest

307 - 220   What is the contributions segment ?

307 - 225   What is the crystallised segment ?

307 - 230   Total superannuation balance

307 - 231   Limited recourse borrowing arrangements

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