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Wednesday, 13 June 1984
Page: 2890


Senator HARRADINE(10.24) —Before the suspension of the Committee last evening, I was addressing some remarks to clause 15 of the Income Tax Assessment Amendment Bill (No. 3) 1984. I had referred to page 76 of the explanatory memorandum. I had quoted from the explanatory memorandum as it dealt with new section 27A (4) and I read out that new section. Say a widow of a superannuitant is paid directly by an employer or a superannuation fund an amount by way of a pension after the death of her spouse and subsequently that widow, considers after advice, that she needs a lump sum to pay off, say, her mortgage or something of that nature. As I read the explanatory memorandum and the Bill, she would not be able to have the pension commuted to a lump sum without incurring the super tax, as is provided for in this legislation. If that is so it would mean that that payment would be an eligible termination payment and would not be exempt from the super tax. Is my understanding of the situation correct?