This is a Tax worksheet provided to collect the necessary information for the calculation of the Death Benefit termination payment offset for employer death benefits paid to a non-dependant of the deceased. It is not lodged electronically.
A death benefit termination paid to a trustee is taxed in the hands of the trustee in the same way that it would be taxed if paid directly to a beneficiary. That is the portions of the payment are subject to tax to the extent the beneficiary is a dependant or a non-dependant of the deceased. There is no tax payable to the extent that the payment is made to a dependant or eligible non-dependant of the deceased.
The tax-free component of an employer death benefit received by a trustee is not subject to tax, regardless of whether the beneficiary is a dependant or non-dependant.
To the extent that one or more beneficiaries of the estate who were not death benefits dependants of the deceased have benefited, or may be expected to benefit, from the death benefit termination – the benefit is treated as if it were paid to a non-dependant of the deceased and is taken to be income to which no beneficiary is presently entitled.
Was a payment made in the previous financial year for the same Death Benefit? Answer the question Y or N or select Yes or No from the list.
Amount of previous payment to dependants or non-dependants: If a payment was made in the previous financial year in relation to the same deceased, enter the amount of that payment here.
|Payer’s name||This field is for record keeping purposes only.|
|Payer’s Australian Business Number (ABN)||This field is for record keeping purposes only.|
|Payment Date||Transcribe the date as detailed on the payment summary.|
|Tax-free component||If there is a tax-free component, enter that amount here. This is not a mandatory field and is for record keeping purposes.|
|Total Tax withheld||Transcribe the tax withheld amount as detailed on the payment summary.|
|Taxable Component||Transcribe the taxed element amount as detailed on the payment summary. An offset, if applicable, is calculated at a tax rate of 15% on this element.|
|Dependants of the deceased||Enter the amount of the payment where the beneficiary is a dependant of the deceased.|
|Non-dependants of the deceased||Enter the amount of the payment where the beneficiary is a non-dependant of the deceased.|
|Is this payment a death benefit?||This field is always set to Y for yes and is a Calculator only field required for the calculation of tax and the Employment termination payment tax offset.|
|Are you are dependant of the deceased?||Select Y or N from the [F10] list or just type it in.|
|Was the deceased a member of the Australian Defence forces or Australian Police Force or Protective Services who died in the line of duty?||If the answer to this question is Yes, then the Non-dependant is considered to be an Eligible non-dependant. Eligible non-dependants of deceased members of the Australian Defence force and Australian police forces (including Australian Protective services) who have died in the line of duty are to be treated as dependants for tax purposes.|
Calculation of Tax on Taxable Income (Estimate)
This field is required for the correct calculation of tax where the Death benefits cap (for example $200,000 for the current income year for the same deceased) has been exceeded. Amounts in excess of the cap are taxed at top marginal rates (45%).
Excess over the Death benefits cap: Enter the amount if any by which the death benefits cap has been exceeded.
11-600 Employment termination payments - Overview
11-680 Death benefit termination payments