Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 280.5

  (1)   There are 3 phases in the tax treatment of superannuation, as follows:

  (a)   the contributions phase;

  (b)   the investment phase;

  (c)   the benefits phase.

  (2)   In the contributions phase, contributions are made to a superannuation plan in respect of a member of the plan.

  (3)   In the investment phase, these contributions are invested by the superannuation provider.

  (4)   In the benefits phase, these contributions, plus earnings from investing them, are usually paid as benefits to the member when he or she retires after reaching preservation age. In the event of death, the benefits are usually paid to the member's dependants.

  (5)   There is also a regulatory scheme outside this Act that is relevant to the taxation treatment of superannuation. For example, other Acts set out prudential and operating standards for superannuation providers.