For income tax purposes, a persons death benefits dependant of a...

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    For income tax purposes, a persons death benefits dependant of a deceased member if, at the time of death, that person was:

    the deceased's spouse or former spouse

    If the death benefit is paid as a lump sum to a dependant of the deceased, it's tax free. It's not assessable income or exempt income. The SMSF doesn't withhold tax from the payment and the recipient doesn't include it in their income tax return.


 
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