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Divorce Settlement as superannuation - is there tax?

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If I agree to a settlement with my ex-partner of $95,000 does that money get taxed when it goes into my superannuation?  He is keeping the house and paying me from his super to mine.  Note: I have no funds in my superannuation as I deducted it when I donated a kidney to a family member as no other means of financial support during preparation and recouperation.  I am 62 years old and earning $38K per year as a self employed cleaner.

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Devotee

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Hi jombey0912

 

The answer is most probably no.

 

Here's information on ato.gov.au about the treatment of super in relationship breakdowns.

 

A super agreement or court order will need to be sent to the super fund for the fund to give effect to the transfer of the amount.

 

The only situation where there'd be tax payable at the point where the super amount is split is if there's an untaxed component in the account and the amount is crystallised and rolled over to another super fund. Untaxed components relate to defined benefit funds, nearly all of which are now closed. Longer serving commonwealth or state or territory public servants are the largest group of workers with defined benefit interests. Any untaxed component would be taxed at 15% when it's rolled over.

 

As you're over age 60 there won't be any tax payable when you claim the benefit either. Unless again the unlikely situation applies where you've received a split interest in a defined benefit fund which contains an untaxed component, in which case the untaxed component will be taxed when it's paid to you.

 

I'm an ATO employee voluntarily providing my time here

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Best answer

ATO Certified

Devotee

Replies 1

Hi jombey0912

 

The answer is most probably no.

 

Here's information on ato.gov.au about the treatment of super in relationship breakdowns.

 

A super agreement or court order will need to be sent to the super fund for the fund to give effect to the transfer of the amount.

 

The only situation where there'd be tax payable at the point where the super amount is split is if there's an untaxed component in the account and the amount is crystallised and rolled over to another super fund. Untaxed components relate to defined benefit funds, nearly all of which are now closed. Longer serving commonwealth or state or territory public servants are the largest group of workers with defined benefit interests. Any untaxed component would be taxed at 15% when it's rolled over.

 

As you're over age 60 there won't be any tax payable when you claim the benefit either. Unless again the unlikely situation applies where you've received a split interest in a defined benefit fund which contains an untaxed component, in which case the untaxed component will be taxed when it's paid to you.

 

I'm an ATO employee voluntarily providing my time here

Newbie

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That all makes sense.  Really helpful, much appreciated.

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