Death taxes on super

Superannuation death benefits should be made tax-free for all beneficiaries, including adult children, and not just for financial dependents as is now the case, according to a submission to the federal government by accountants' body, CPA Australia. Currently, those who qualify as financial dependents for superannuation death benefits include spouses and minor children, who receive a superannuation death benefit tax-free. As of July 1 next year, non-dependent adult children will be taxed 15 per cent (plus 1.5 per cent Medicare levy) on it. This is regardless of whether the superannuant who died was over 60. All super will be tax-free at age 60 from July 1 next year.

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