1 Was the payment made by the Fund a superannuation death benefit for the purposes of section 307-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
No. Question 2 Was the payment made by the Fund a superannuation member benefit defined in subsection 307-5(1) of the ITAA 1997? Answer Yes. This ruling applies for the following period : 30 June 20XX The scheme commences on: 17 June 20XX
During the 20XX-XX year, the Deceased applied to close her superannuation account with her Fund on the basis that the Deceased was 65 years or older. A few days later, the Deceased passed away. Shortly after, the superannuation benefit was paid into the Deceased's bank account.
Income Tax Assessment Act 1997 Section 307-5 Income Tax Assessment Act 1997 Subsection 307-5(1) Income Tax Assessment Act 1997 Subsection 995-1(1) Summary The lump sum payment made by the Fund to the Deceased's bank account is not a superannuation death benefit. The payment is instead a superannuation member benefit. Detailed reasoning Subsection 995-1(1) of the ITAA 1997 states that a 'superannuation death benefit' has the meaning given to it by section 307-5 of the ITAA 1997. Column 3 of Item 1 of subsection 307-5(1) of the ITAA 1997 defines a superannuation death benefit as 'a payment to you from a superannuation fund, after another person's death, because the other person was a fund member'. In the above definition, the payment is made to a secondary individual after the passing of the