Reasonable benefit limits - which benefits do not count

As part of major changes to simplify super, the reasonable benefit limits (RBL) have been abolished from 1 July 2007. However, you still have RBL obligations for super benefits paid up to 30 June 2007. The information in this publication will help you meet these obligations.

For more information about changes to super phone 13 10 20.

Most pensions, annuities and eligible termination payments (ETPs) received after 15 February 1990 count towards RBLs, but there are some benefits that don't. These benefits are not reported by payers.

ETPs

• ETP paid before 1 July 1990 by an employer, where the recipient was not an associate;
• commutation or residual capital value ETP where the pension or annuity commenced before 1 July 1990;
• ETP paid to charitable or religious bodies;
• ETP paid by employer and less than $5001 (unless the ETP includes a CGT exempt component).

Pensions and annuities

• residual pension or annuity where the original pension or annuity commenced before 1 July 1990;
• reversionary pensions and annuities;
• pensions and annuities payable to a person under the age of 18 because of the death or disability of another person.

Prior to 1 July 1994 most of these benefits were reported to the Tax Office but did not count towards the RBLs. Since 1 July 1994 these benefits have not been reportable.

NAT 5262

Last Modified: Thursday, 7 June 2007