Super relief to the terminally ill
The Government has announced that people with a terminal illness will be able to access their superannuation before they turn 60 without paying the tax on their lump sum benefit.
Assistant Treasurer Peter Dutton said the current law was putting too much financial and emotional pressure on people who were terminally ill.
Individuals under the age of 55 who accessed a ump sum superannuation benefit from a taxed superannuation fund were currently subject to a maximum tax rate of 20% plus the Medicare levy.
This tax was generally withheld by the superannuation fund when it made the lump sum payment.
“The Government has decided to change this area of tax legislation because we believe we need to remove as many of the stresses as possible for people in this terrible situation,” he said.
