Abstracted from IntaxIn most situations, Australians aged over...

Abstracted from Intax

In most situations, Australians aged over 60 are not taxed on their superannuation. However, tax advisers need to explain to their clients that a tax will probably apply upon their death. Death taxes vary according to whether or not the beneficiary is a dependent. If the beneficiary is not a dependent, a 16.5 per cent income tax rate will apply to the taxable amount of the super death benefit and a 31.5 per cent rate to the untaxed element. A recycle strategy can allow a non-dependent beneficiary to lower their income tax


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