Item 7 - Australian annuities and superannuation income streams
For 2018 tax returns
If you are completing a 2018 tax return, refer to Applying the Australian Super annuity/income stream offset and Defined benefit cap on how to complete the label - Transfer balance cap
Click this link for information on Item 7 - Australian annuities and superannuation income streams on the ATO website.
The taxable component of such payments is detailed on the Payment Summary received from the Superannuation Fund as 'Taxed and/or Untaxed elements'. These amounts, together with the Assessable amount of Non-Superannuation Annuities are entered at labels J and N.
Lump sum in arrears taxable components are detailed on the Payment Summary received from the Superannuation Fund as 'Taxed and/or Untaxed elements'. These amounts are entered at labels Y and Z.
Tax-free components are non-assessable, non-exempt income and are NOT to be included at any item in the return. However, they are included to calculate assessable amount of capped defined benefit income stream at label M.
Use the Australian annuities and superannuation income streams worksheet (asi) to calculate the income amounts to be disclosed at these labels and if the Tax Offset has not been included on the Payment Summary, use the Superannuation income streams to calculate any offset that can be claimed at item T3. Refer to Annuities and superannuation income streams worksheet (asi).
Ensure that you complete the worksheet at item T3 if the taxpayer is entitled to claim any Australian superannuation income stream offset. Refer to Annuity and Super Income Stream Offset (pen).
Alternatively, if the taxpayer received any income from an Australian annuity or superannuation income stream, enter those details at this item.
| Title | Label | Description |
|---|---|---|
| Total tax withheld | This is the total of amounts of tax withheld as detailed in the PAYG payment summary-superannuation income stream plus amounts of tax withheld from Australian non-superannuation annuities detailed in the PAYG payment summary-individual non-business. | |
| Taxable Component
| J Taxed element | This is the sum of all the taxed element amounts of Australian superannuation income streams and must only contain amounts that were paid before the taxpayer turned 60 years of age. |
N Untaxed element | This is the sum of all the untaxed elements of Australian superannuation income streams, whether the taxpayer has reached the age of 60 years or not, plus the assessable amounts of Australian non-superannuation annuities. | |
| Assessable amount from capped defined benefit income stream | M Assessable amount | Enter the assessable amount of capped defined benefit income stream |
Lump sum in arrears - taxable component | Y Taxed element | Enter the amount of the taxed element. |
Z Untaxed element | Enter the amount of the untaxed element. |
Click this link for information on the ATO website non-assessable non-exempt income.
CCH References
14-120 Superannuation lump sums and income streams
14-125 Superannuation income stream benefits and minimum standards
14-130 Components of a superannuation benefit
14-140 Tax free component of a superannuation benefit
14-150 Taxable component of a superannuation benefit
14-220 Taxation of benefits from a taxed source
14-240 Taxation of benefits from an untaxed source
14-320 Transfer balance cap regime
14-370 Defined benefit income cap — modified tax rules on excessive payments
14-510 Taxation of non-superannuation annuities and foreign fund pensions