The previous Government announced exemption from tax for members with a terminal illness who access their superannuation under the age of 60 from the tax on their lump sum benefit. Individuals under the age of 55 who access a lump sum superannuation benefit from a taxed superannuation fund are currently subject to a maximum tax rate of 20% (plus the Medicare levy). This tax is generally withheld by the superannuation fund when it makes the lump sum payment. While the actual tax payable may be lower as it depends on the individual's marginal tax rates, any refund they may be entitled to would not be determined until the end of the income tax year. Until the proposal becomes law, the Government has asked the Commissioner to consider changing the rate at which superannuation funds are required to withhold from payments to people in these circumstances. Amendments to the legislation will have effect for payments received after 11 September 2007.
8th-February-2008 | 