Bob is outraged that the new super legislation will result in a change to the additional payment linked to death benefits. So, what does this mean for his super when he dies?
Q. Bob
Is it true that the Government, not content with ripping off pensioners, is now ripping off our widows by removing the anti-detriment clause from our superannuation?
A. First, an anti-detriment payment is an amount equivalent to the 15 per cent contribution tax paid on super contributions by the deceased member over their lifetime. This payment is in addition to the usual death benefits and can be paid to an eligible dependent when a lump sum death benefit is paid. An eligible dependent is considered a:
- spouse or former spouse
- child (including an adult child)
- trustee of the deceased estate.
Under the changes to superannuation legislation, most of which take effect from 1 July 2017, an anti-detriment payment will no longer be made if the super fund member dies after 1 July. If a super fund member dies before 1 July 2017, there is an allowance whereby the anti-detriment payment can be made up to 1 July 2019.
If you’re unsure how this will affect you directly, you should contact your super fund or visit ATO.gov.au for more information.
Related articles:
Tempted to raid your super?
How will super changes affect you?
