Click this link to open the information on Item T2 label S on the ATO website.
Superannuation income streams (annuity and pension) offset is calculated in the worksheet Annuity and Super Income Stream Offset (pen). This is a transactional worksheet that permits more than one pension or superannuation annuity offset to be calculated.
If the taxpayer received income from an Australian superannuation income stream and declared that income at Item 7, the taxpayer may be entitled to a tax offset equal to 10% or 15% of all or part of the taxable component of the superannuation income stream benefit.
If the untaxed element exceeds the defined benefit income cap, the excess amount should be excluded while entering the value into the worksheet.
14-510 Annuities and fund pensions