22nd Mar 2017
FONT SIZE: A+ A-
Super death benefit tax allowance a costly change
Changes to the tax allowance on super death benefits could prove costly.

Bob is outraged that the new super legislation will result in a change to the additional payment linked to death benefits. So, what does this mean for his super when he dies?

Q. Bob

Is it true that the Government, not content with ripping off pensioners, is now ripping off our widows by removing the anti-detriment clause from our superannuation?

A. First, an anti-detriment payment is an amount equivalent to the 15 per cent contribution tax paid on super contributions by the deceased member over their lifetime. This payment is in addition to the usual death benefits and can be paid to an eligible dependent when a lump sum death benefit is paid. An eligible dependent is considered a: 

  • spouse or former spouse
  • child (including an adult child)
  • trustee of the deceased estate.

Under the changes to superannuation legislation, most of which take effect from 1 July 2017, an anti-detriment payment will no longer be made if the super fund member dies after 1 July. If a super fund member dies before 1 July 2017, there is an allowance whereby the anti-detriment payment can be made up to 1 July 2019.

If you’re unsure how this will affect you directly, you should contact your super fund or visit ATO.gov.au for more information.

RELATED ARTICLES





    COMMENTS

    To make a comment, please register or login
    Ted Wards
    28th Mar 2017
    11:31am
    We still let them gt away with playing around with our future. When are politicians going to start taking notice of us?
    thommo
    28th Mar 2017
    12:07pm
    Ted,,,,,This government, in collusion with their perfidious senate cronies, is hell bent on maintaining this onslaught against aged pensioners, and its time we rose up and reclaimed our rights and dignity, and reversed these adverse changes to our fair entitlements.
    Most Australians will need to rely on the age pension in one form or another, and I cannot understand how the voters are letting this mob get away with this behaviour. We must put a stop to it now and get support for the cause in parliament.
    But one thing is certain, ...this government will lose the next election at the behest of the age pensioners and their families..Just wait and see.
    Waiting to retire at 70
    28th Mar 2017
    12:15pm
    About as clear as the ATO site from where you copy/pasted this answer.

    DON'T answer financial questions without a financial qualification AND hands on experience. You just add to the confusion the government is spreading.
    Tzuki
    28th Mar 2017
    6:49pm
    confused!!
    Not Senile Yet!
    28th Mar 2017
    12:52pm
    Ted...when you actually Stop giving your Vote to Party Puppets that do what the Party tells them!
    Independents can and do negotiate...speak...disagree....speak out....argue....rally other MP's support....speak to the media....go on TV.....!!!!!!
    None of which a Party Puppet. eiil do or can do... without getting permission from the Party Headmaster or Caucus Approval.! Even then....what they can say is orchestrated or written carefully out for them!
    Why do people Vote for someone who can't talk and is controlled by someone else?
    As for the Superannuation Subject.....35 changes in 25 yrs should be enough to tell anyone that Our Governments and Both Parties have completely Screwed the Superannuation of all of us!
    How? Theu are constantly changing it and fiddling....yet All the changes Favour the Government or the Insurance Industries....not the Taxpayer being forced into a Super Scheme that's rules are Unrecogniseable to Anyone!
    Compulsory Super in it's Original Form was a good deal except for one thing.....the Government could change it at will.
    Now it's no longer that Good Deal....now it's a Rip-off!!!. One does not invest into something that others can change at a dro of a hat!
    Governments in Australia are Dismantling all our Successful Legislations or changing them without good reasons other than double dipping for tax or to increase profits!
    Sundays
    28th Mar 2017
    3:00pm
    Little effort has gone into answering this question. You should have just advised Bob to contact his super fund. A quick use of Google would give you more detail than this response!
    Aussie
    28th Mar 2017
    8:49pm
    Come on everybody ...wake up to the reality of our governments please .....

    THEY DO NOT GIVE A SHIT ABOUT US THEY ONLY CARE ABOUT THEM AND THEIR RICH PARTNERS.
    LET'S BE REALISTIC .... WHY THEY ARE TARGETING ALL OF US ???? WHY ???? WHY THEY DO NOT TARGET THE RICH POLITICIANS WITH ENORMOUS PENSIONS ????? WHY US .....ALL WE HAVE IS 800+ X FORTNIGHT TO PAY FOR EVERYTHING.

    I AM NOT COMPLAINING I AM OK WITH MY PENSION BUT NOT EVERYONE IS THE SAME AS ME .......THEY ARE LOST OF US SUFFERING AND LIVING A SHIT OLD AGE LIFE AFTER BEEN WORKING FOR SO MANY MANY YEARS AND PAYING A LOT OF TAXES TO SUPPORT OTHER RETIREES ..... NOW IS OUR TURN TO BE SUPPORTED WE ALREADY SUPPORT MANY RETIREES OVER 45 YEARS .

    THEY WANT US DEAD DEAD DEAD THEY DO NOT CARE IF WE ARE SICK OR WHATEVER THEY WANT US DEAD AND OUT OF THEIR WAY SO THEY CAN SPEND AND SPEND AND PROMISE AND PROMISE .....

    LUCKY I AM OK .... BUT WHAT ABOUT MANY OTHER RETIREES SUFFERING EVERYDAY LIVING A SHIT LIFE RATHER THAN HAVE PEACE AND RELAXATION IN OUR OLD AGE .........

    THANKS COALITION BASTARDS .......

    THIS IS MY OPINION AND I HAVE THE RIGHT TO MY OPINION AND IF YOU DISAGREE IS OK I UNDERSTAND
    musicveg
    28th Mar 2017
    10:29pm
    Yes they pretty much only interested in supporting their business investments, mainly in dirty energy corporations who avoid paying taxes to Australia:

    https://www.getup.org.au/campaigns/corporate-tax/corporate-tax-inquiry-submission
    MICK
    29th Mar 2017
    6:30am
    The next nail in the coffin. Your money is going to the top end of town who are getting tax cuts. The rest of us keep being mauled by the most crooked government in living history. If I did not know better I would say that the dictatorship has begun.
    Expect worse. Many of you voted for this bunch of thieving misfits.


    Join YOURLifeChoices, it’s free

    • Receive our daily enewsletter
    • Enter competitions
    • Comment on articles