Taxation Law Answer Question 2022

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

TAXATION LAW1
Table of Contents
Answer to question 3:.................................................................................................................2
References:.................................................................................................................................5

TAXATION LAW2
Answer to question 3:
As stated by the Australian taxation office the superannuation represents the money
that a taxpayer has kept it aside during their working life so that they can use it during
retirement. As stated within the Australian taxation law, any amount that a taxpayer has
transferred from the foreign retirement fund might attract tax liability1. On the basis of the
rules of the foreign super fund rules, a taxpayer may be considered eligible to transfer the
retirement amount to;
a. A complying superannuation fund in Australia
b. Transfer themselves
A taxpayer may have to pay the tax on the all the amounts in the fund or to some parts
of the funds. If an individual taxpayer transfers the amount to the complying Australian super
fund, the amount would normally count inside their contribution caps and they may also have
to pay taxes on the excess amount of contributions. If the lump sum amount from the foreign
retirement fund is paid to the taxpayer, then the taxable amount of the payment and any kind
of applicable fund earnings is required to be included in their taxable earnings and will also
be taxed on the basis of the marginal tax rate2. In addition to this, any sum relating to the
foreign retirement funds that is transferred and exceeds the amount which was vested to the
taxpayer during the time of transfer, then in such a situation the taxpayer is under obligation
of including in their personal taxable income.
1 Chant, Warren, Mano Mohankumar, and Geoff Warren. "MySuper: a new landscape for
default superannuation funds." CIFR Paper 020 (2014).
2 Sneddon, Thomas, et al. "Superannuation drawdown behaviour." JASSA 2 (2016): 42.