Understanding a death benefit paid from a super fund

How do I fill in my tax return?

If you receive a super death benefit that is tax-free, do not include the benefit in your income tax return. The super fund will not withhold any tax or give you a payment summary.

If you receive a super death benefit that is taxable and it is:

• an income stream, being a pension or annuity, the super fund will send you a PAYG payment summary - superannuation income stream (NAT 70987), or
• a lump sum payment, the super fund will send you a PAYG payment summary - superannuation lump sum payment (NAT 70947).

The payment summary will show the income earned and the tax withheld. It will also show any taxable component of the benefit that you will need to include as part of your assessable income in your income tax return.