Tax Rate Tables - SMSF Review

SMSF Technical Education & Strategies

Tax rate tables for SMSF death benefits

The following tables summarises the tax treatment of the tax components that make up either lump sum or pension death benefits.

Taxation of Death Benefit Lump Sums

The rates in the table below relate to lump sums paid either directly by the SMSF to SIS dependants, or paid via the legal estate to anyone.

Tax components	Paid to a Death Benefits Dependant	Paid to a Non-Death Benefits Dependant*
Tax free component	Nil	Nil
Taxable component	Nil	15% + medicare levy
Untaxed element of the taxable component	Nil	30% + medicare levy

Taxation of Death Benefit Pensions

Note that death benefits paid as income streams can only be paid to SIS dependants.

Tax components	Either the deceased or the dependant aged 60 or over	Both deceased and the dependant aged under 60
Tax free component	Nil	Nil
Taxable component	Nil	treated as normal assessable income and taxed at marginal tax rates, but with a 15% tax offset
Untaxed element of the taxable component	treated as normal assessable income and taxed at marginal tax rates, but with a 10% tax offset	treated as normal assessable income and taxed at marginal tax rates

Membership

It's FREE, but the benefits
are huge. Stay up to date
with all the latest strategies,
get access to all of our
resources, and much more.
Click the button below to find out more.

JOIN SMSF REVIEW TODAY