An anti-detriment payment is an additional lump sum amount paid to the eligible dependant of a super fund member who dies (in addition to a lump sum death benefit that is paid to the dependant on the super fund member’s death). The additional lump sum payment is a refund of the 15% contributions tax paid by the super fund member during their life.
Fund trustees can claim a tax deduction for any anti-detriment payments made to eligible dependants of deceased super fund members. These dependants could include:
- former spouses,
- children/adult children,
- trustees of deceased estates.
However, it’s important to note that anti-detriment payments were banned for any super fund member deaths from July 1, 2017 onwards. Funds can still make anti-detriment payments to eligible dependants up to 30 June 2019 for members who died prior to 30 June 2017. After that date, no further anti-detriment payments will ever be able to be made by super funds.