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  • Super pensions, annuities and government payments

    You must declare income you received from pensions paid to you as a super income stream, annuities and some government payments.

    Find out about:

    Pensions

    A pension is a series of regular payments made as a super income stream (this does not include government payments such as the age pension).

    These payments may be made:

    • by an Australian super fund, life assurance company or retirement savings account (RSA) provider
    • by a fund established for the benefit of Commonwealth, state or territory employees and their dependants (such as the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme)
    • as a result of another person's death (death benefit income stream).

    What you need to declare

    Your super income stream payments will have different components. Depending on your age and the type of income stream you receive, you may need to declare the following components in your tax return when calculating your assessable income:

    • a taxed element − the part of your benefit on which tax has already been paid in the fund
    • an untaxed element − the part of your benefit that is still taxable because tax has not been paid in the fund
    • a tax free component – the portion of the super benefit that is tax-free.

    See also:

    Annuities

    An annuity is usually a series of regular payments to you by a life insurance company in return for a lump sum payment.

    Most annuities have both taxable and tax-free components.

    Taxable annuity payments will be included in your assessable income when received. This includes annuities received by you as a reversionary beneficiary.

    Government payments

    You must declare Australian Government payments such as the age pension, carer payments, Austudy, Newstart and Youth Allowance on your tax return.

    Some government payments are exempt from income tax but you still need to declare them on your tax return. This information is used to work out whether you are eligible to receive a range of government benefits and tax offsets.

    These payments are:

    • disability support pension (if you are below the pension age)
    • child disability allowance
    • carer adjustment payment
    • Veterans' Affairs disability pensions and allowances.

    See also:

    Last modified: 26 Mar 2018QC 31969