This module provides the final overlay of the taxation on benefit payments. Having identified the components of a member’s interest, how the proportioning rule works and the types of benefits that can be paid, the final step is to determine how much tax needs to be withheld by an SMSF trustee in respect of those benefits.

This includes consideration of the special rules that apply to the tax treatment of benefits linked to terminal illness, permanent incapacity via a disability superannuation benefit and death benefits payable to dependants.