6 April 2000

Superannuation Estate Planning Loophole to be Closed

The Assistant Treasurer Senator Rod Kemp, today announced that the reasonable benefit limits (RBLs) provisions in the Income Tax Assessment Act 1936 will be amended to improve equity and reduce uncertainty in the treatment of death benefits.

RBLs are the maximum amount of concessionally taxed superannuation and termination benefits that a person can receive over their lifetime. Amounts above the RBL do not receive concessional tax treatment.

This amendment, which takes effect from today, will ensure that when a person receiving a superannuation benefit dies and the benefit is passed on to a beneficiary, the RBL treatment of those benefits does not change. This means that when a beneficiary receives any benefits that have already been determined as being above the deceased person's RBL, these benefits will continue not to receive concessional tax treatment.

 

CANBERRA
6 April 2000

Media contact: Richard Allsop (02) 6277 7360