Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 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.

  (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.

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

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.

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