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Tuesday, 12 June 1984
Page: 2874

Senator HARRADINE(10.28) —Mr Temporary Chairman, I want to raise two matters in the Committee stage of the debate on the Income Tax Assessment Amendment Bill (No. 3) and the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Amendment Bill. I did not speak at the second reading stage because I think all of the matters I wished to raise were raised by other speakers. I now wish to raise two matters. One deals with the computation provisions in respect of the dependent spouse of a deceased superannuitant and the other deals with the amount of tax applied to lump sums which are rolled over into annuities. The first matter relates specifically to sub-section 27A of the Income Tax Assessment Amendment Bill (No. 3). On page 76 the explanatory memorandum states in regard to sub-section 27A (3):

Sub-section (4) will ensure that eligible termination payments, in consequence of the termination of employment or from a superannuation fund or approved deposit fund, made after the taxpayer's death to the estate of the taxpayer will not be included in the assessable income of the estate by virtue of Subdivision AA and proposed sub-section 101A (3) to the extent that the Commissioner considers appropriate having regard to the extent to which the taxpayer's dependants (see the notes on the extended definition of 'dependant' in sub- section 27A (1)) are expected to benefit from the estate.

Where a payment of these kinds is made direct by the employer or fund to a dependant, the terms of paragraphs (a), (b) and (c) and sub-section 27A (3) prevent the payment from being an eligible termination payment of either the dependant or the deceased.

Consideration interrupted.

The TEMPORARY CHAIRMAN (Senator Townley) —Order! It being 10.30 p.m., under sessional order I put the question:

That the Temporary Chairman do now leave the chair and report to the Senate.

Question resolved in the affirmative.

The Temporary Chairman having reported accordingly-