Anti-Detriment Payments to end June 2017

Little is known in the market about anti-detriment payments, but essentially it is an additional lump sum amount that can be paid to a dependant of a deceased person when a lump sum death benefit is paid or when an executor requests for the superfund to make an anti-detriment payment. 

This additional lump sum represents a refund of the 15% contribution tax paid by the deceased member during his/her lifetime.  Although if requested a number of funds will pay anti-detriment payments, superannuation funds are not automatically obliged to do so as part of their claims process.

However, the Government announced the removal of this little side benefit in the 2016-17 budget as part of its superannuation reforms.  This removal has now received Royal Assent.  A superfund can now only make an anti-detriment payment if the member dies on or before 30 June 2017.    As an interim measure, the fund will also have until 30 June 2019 to pay the benefit.