Aviation industry superannuation fund AvSuper will now apply anti-detriment provisions to the death benefits paid to the spouses and children of deceased AvSuper members.
"A significant number of funds have this in place and the trustee decided to review AvSuper's arrangement and offer these provisions," AvSuper member services manager John Hackett said.
Hackett said the anti-detriment provisions would restore a member's accumulation benefit to what it would have been if contributions tax of 15 per cent had not been deducted from concessional contributions.
"It's quite common and a lot of other funds have had this in place for years, but it essentially restores the members' accounts to the same position had the tax not been imposed," he said.
The AvSuper trustee has determined the anti-detriment provisions will be effective from 1 January 2009.
The federal government introduced anti-detriment payments in 1988. The level of payments is determined by the taxable component of the built up capital.
The tax refund only applies to lump sum superannuation death benefits paid to a spouse, ex-spouse or children of any age.
Last year, DBA Butler lawyer Bryce Figot warned that those taking advantage of the anti-detriment provisions should expect close scrutiny from the Australian Taxation Office.
