dependant is fully included in your assessable income under subsection of the ITAA 1997. In the facts of this case, superannuation death benefits were made to your client in the relevant and subsequent income years. Your client is considered to be a non-dependant of the deceased. Therefore the superannuation death benefits received by your client will not attract the additional concession available to a 'death benefits dependant', but rather is assessable to your client according to the components. As noted above, the taxable components are fully included as assessable income in your client's tax return in the income year they are received in accordance with subsection 302-145(1) of the ITAA 1997. However, under subsections 302-145(2) and (3) of the ITAA 1997 your client is entitled to a tax offset on the taxable components that ensures the rate of tax payable will not exceed 15% plus Medicare levy on the element taxed in the funds and 30% plus Medicare levy on the element untaxed in the funds. The legislation itself is quite specific. It requires all the conditions set out in section 302-195 of the ITAA 1997 to be met. It does not contain a discretion that can be exercised by the Commissioner to allow the taxable components of the payments to be excluded from your client's assessable income.
dependant is fully included in your assessable income under subsection of the ITAA 1997. In the facts of this case, superannuation death benefits were made to your client in the relevant and subsequent income years. Your client is considered to be a non-dependant of the deceased. Therefore the superannuation death benefits received by your client will not attract the additional concession available to a 'death benefits dependant', but rather is assessable to your client according to the components. As noted above, the taxable components are fully included as assessable income in your client's tax return in the income year they are received in accordance with subsection 302-145(1) of the ITAA 1997. However, under subsections 302-145(2) and (3) of the ITAA 1997 your client is entitled to a tax offset on the taxable components that ensures the rate of tax payable will not exceed 15% plus Medicare levy on the element taxed in the funds and 30% plus Medicare levy on the element untaxed in the funds. The legislation itself is quite specific. It requires all the conditions set out in section 302-195 of the ITAA 1997 to be met. It does not contain a discretion that can be exercised by the Commissioner to allow the taxable components of the payments to be excluded from your client's assessable income.