Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * tax free component of a * death benefit termination payment that you receive after the death of a person of whom you are a * death benefits dependant is not assessable income and is not * exempt income.
(2) If you receive a * death benefit termination payment after the death of a person of whom you are a * death benefits dependant:
(a) the part of the * taxable component of the payment mentioned in subsection (3) is not assessable income and is not * exempt income; and
(b) the remainder of the taxable component (if any) of the payment is assessable income.
Note: The remainder of the taxable component is taxed at the top marginal rate in accordance with the Income Tax Rates Act 1986 .
(3) The amount is so much of the * taxable component of the payment as does not exceed the * ETP cap amount.
Note: For the ETP cap amount, see section 82 - 160.
(4) The * ETP cap amount is reduced (but not below zero) by the amount worked out under subsection (3) for each * death benefit termination payment (if any) you have received earlier in consequence of the same employment termination, whether in the income year or an earlier income year.
Note 1: See subsection 82 - 75(2) for the tax treatment of any amount by which you may have benefited from an employment termination payment to the trustee of the estate of the deceased.
Note 2: If you have also received a life benefit termination payment in the same income year, your entitlement to a tax concession under this section is not affected by your entitlement (if any) to an offset for the life benefit termination payment (under section 82 - 10).