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  • Y Exempt current pension income

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Did the SMSF pay a super income stream (or super pension) to a member in 2015–16?

    No

    Leave Y blank. Go to V.

    Yes

    Read on.

    If the SMSF paid a super income stream (or super pension) to one or more members during 2015–16, some, or all, of its ordinary income and statutory income may be exempt from income tax under the exempt current pension income rules. This exempt income is called 'exempt current pension income' or ECPI.

    Do not reduce the exempt income at Y by the amount of expenses incurred in deriving that exempt income.

    Expenses incurred in gaining or producing exempt income are not deductible – those expenses must be shown as non-deductible expenses in Section C.

    The amount that you write at Y must be the same as the amount at 10A Exempt current pension income amount in Section A.

    To work out your SMSF's ECPI, see Self-managed super funds and tax exemptions on pension assets.

    Legislation

    Subdivision 295-F of the Income Tax Assessment Act 1997External Link

    If your SMSF has PAYG instalments

    If you use the instalment rate method to calculate your SMSF's PAYG instalments, you must exclude the SMSF's exempt current pension income from the amount you write at T1 PAYG instalment income on the PAYG activity statement. See PAYGI instalment essentials.

    Last modified: 14 Feb 2019QC 48236