Any lump sums, pensions or annuities received by you from an RSA are concessionally taxed but must be included in your tax return in the year of receipt.
If you receive a lump sum, the RSA provider will send you details of the payment. Lump sums are taxed at concessional tax rates provided they are within your Reasonable Benefit Limit (RBL).
Pensions or annuities received by you are taxed as normal income. However, provided they are within your RBL, a tax offset of 15% may apply on that part which is assessable.
Your RBL is the maximum amount you can receive and still obtain concessional tax treatment on lump sums, pensions or annuities.
If the total of the amounts you have received exceed your RBL:
the excess of any lump sum is taxed at the highest personal rate plus Medicare levy
the amount of any pension or annuity which is eligible for the offset is reduced.
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