Death Benefits to non dependants

Self managed super, DIY superannuation, ATO - taxation

Death Benefits to non dependants

Postby helaw » Thu Apr 12, 2007 5:00 pm

I've seen a couple of newsletters suggesting that for some people segregating tax exempt components before 1st July would help to preserve the value of the new consolidated tax exempt component used when paying death benefits to non dependants. In future they will pay 15% + Medicare on the remaining taxable component and segregation is suggested as a way of minimising this tax.
I don't understand how segregation might help. Any ideas ?
helaw
 
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Postby Pedro-Egoli » Thu Apr 12, 2007 8:14 pm

Helaw,
Not sure if I am on the right track but it may be to do with "Revisionary pensions"

Check out this site
http://simplersuper.treasury.gov.au/fact_sheets/html/death_benefits.asp

Afraid I am not up to scratch with who can be nominated but it may only be family , and as per above link there are different outcomes depending on age.
Would suggest you contact the simpler super hotline and discuss.

Will be interested to read further posts on this, for the benefit of my non dependant children.
Happy days,

Pedro
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Postby helaw » Fri Apr 27, 2007 1:23 pm

The weekend Fin Review 22nd April has some detail on this general topic.

Also see Components section here -

http://www.cleardocs.com/clearlaw/super ... pler-super
helaw
 
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Re: Death Benefits to dependants

Postby Judd » Tue Jun 22, 2010 7:01 am

Received the death benefit payout from my lovely lady's superannuation fund. Includes an amount called an "anti-detriment" payment. Not fully up with it as I am not really interested but apparently as death benefits payable from superannuation funds are tax free, there is a provision in some funds' trust deeds to apply income tax law that essentially refunds contributions tax. Very odd but it is worked out using some arcane formula - devised by the tax office naturally.
Regards
Judd
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