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becjade75(Newbie)Newbie
29 Aug 2022

Are death proceeds from super counted as coming from a deceased estate for tax purposes , with respect to any interest earned on such funds when held in the bank? i.e. minor investment income that has been derived from estate proceeds are only subject to normal tax rates. So is this still the case if the funds were received directly from the super fund by way of a death benefit nomination, or do the funds have to have been paid directly from the persons estate instead (thereby my kids would be better off by me having my listed beneficiary on my super as my estate (LPR). Hope this makes sense.

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1,925 views
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CaroATO(Community Support)Community Support
31 Aug 2022

Hi @becjade75,


Your super is held in a trust for you by the trustee of your superfund.


The income to the minor will be considered excepted income and taxed at adult rates. This means the trustee will pay tax on the minors share of the net trust income.


Keep in mind you'll need to have your kids listed as a beneficiary of your super fund. A binding nomination means the super fund has to legally pay directly to those you nominate. You might also want to think about putting this information also in your will.


Check out the information on our website where it talks about expected income for minors and super death benefits.

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Most helpful reply

CaroATO(Community Support)Community Support
31 Aug 2022

Hi @becjade75,


Your super is held in a trust for you by the trustee of your superfund.


The income to the minor will be considered excepted income and taxed at adult rates. This means the trustee will pay tax on the minors share of the net trust income.


Keep in mind you'll need to have your kids listed as a beneficiary of your super fund. A binding nomination means the super fund has to legally pay directly to those you nominate. You might also want to think about putting this information also in your will.


Check out the information on our website where it talks about expected income for minors and super death benefits.

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Is super paid directly to a minor child beneficiary upon death taxed? | ATO Community