Draft regulations that will further refine the meaning of interdependency relationships were released for public comment today by the Minister for Revenue and Assistant Treasurer, Mal Brough.
"Last year, the Government expanded the definition of 'dependent' for the purposes of the payment and taxation of superannuation death benefits. As a result of those amendments, people in interdependency relationships can receive their partner's superannuation tax free in the same way as a spouse (including de facto spouse), child (under 18) or person who is financially dependent on the deceased fund member," Mr Brough said.
Currently, two people are in an interdependency relationship if they have a close personal relationship, reside together, one or each of them provides the other with financial support and one or each of them provides the other with domestic support and personal care.
Two people are also in an interdependency relationship if they have a close personal relationship but are unable to satisfy the other elements of the definition because of a disability.
"The draft regulations provide a number of elements that will assist in determining whether an interdependency relationship exists, as well as confirm a number of specific situations in which an interdependency relationship does or does not exist."
The draft regulations are available from the Treasury website at www.treasury.gov.au.
Comments will be accepted until 17 June 2005 and should be sent to the following address:
Manager
Retirement Income and General Rules Unit
The Treasury
Langton Crescent
PARKES ACT 2600
or by email to: superannuation@treasury.gov.au.