• 7 Australian annuities and superannuation income streams 2016

    This question is about income you received from annuities and superannuation income streams.

    Annuities (also known as non-superannuation annuities) may be paid to you by life insurance companies and friendly societies. You may have received a PAYG payment summary – individuals non-business showing such amounts.

    Superannuation income streams (including lump sum in arrears amounts) are paid to you by Australian superannuation funds, retirement savings account (RSA) providers and life insurance companies. You may have received a PAYG payment summary – superannuation income stream showing such amounts.

    If you received a taxable Australian superannuation lump sum payment, show it at item 8.

    Do not show the following tax-free amounts anywhere on your tax return:

    • the taxed element of a superannuation income stream you received after your 60th birthday
    • the taxed element of a superannuation income stream paid to you
      • if you were 60 years old or older when you received the benefit, or
      • as the result of the death of another person who died aged 60 years old or older
       
    • the tax-free component of any superannuation income stream.

    Did you receive Australian superannuation income streams or annuities?

    No

    Go to question 8 Australian superannuation lump sum payments 2016, or return to the main menu Individual tax return instructions 2016

    Yes

    Read on.

    Answering this question

    You will need:

    • your PAYG payment summary – individual non-business showing the gross payment of any annuities
    • your PAYG payment summary – superannuation income stream; superannuation income stream benefits have two components which may be shown on your payment summary
      • a taxable component which can have two elements  
        • a taxed element, and
        • an untaxed element
         
      • a tax-free component (do not show your tax-free component anywhere on your tax return).
       

    You may also need a statement from your payer showing the deductible amount of the undeducted purchase price (UPP) of the annuity so you can work out the amount to include as income at this item. If you have not received this information or you have lost it, contact your payer to obtain a copy.

    If you have lost or not yet received a payment summary or statement, contact your payer to obtain a copy.

    You may not have received a PAYG payment summary –– superannuation income stream because your entire superannuation income stream was tax-free. For example, you may not have received a payment summary if, in 2015–16, your superannuation income stream contained only taxed elements received on or after your 60th birthday.

    Completing your tax return

    Follow the steps below to ensure we apply the correct rate of tax.

    Step 1 Tax withheld

    Add up the tax withheld amounts on your payment summaries for your superannuation income streams and annuities.

    Write the total in the left column under Tax withheld at item 7.

    Step 2 Taxed element of taxable component

    Add up the taxed element amounts that appear under the heading Taxable component on your payment summaries for your superannuation income stream.

    Do not include gross payments from annuities shown on a PAYG payment summary – individual non-business at this step. These are dealt with at step 4.

    Write the total at J item 7.

    Step 3 Untaxed element of taxable component

    Add up the untaxed element amounts that appear under the heading Taxable component on your payment summaries for your superannuation income stream.

    Write the total at (a) in worksheet 1.

    If you did not receive untaxed element amounts, write 0 at (a) in worksheet 1.

    Step 4 Annuities

    If you did not receive any Australian annuities,

    write 0 at (b) in worksheet 1 and go to step 5.

    If you received an annuity, your payer may have provided you with a statement showing the deductible amount of the UPP of your annuity. If you do not have details of the deductible amount, contact your payer for assistance. If your payer cannot tell you, phone 13 10 20.

    Subtract the deductible amount from the gross amount of the annuity shown on your PAYG payment summary – individual non-business.

    • If the result is a negative amount, the result is treated as if it were zero
    • If you had more than one annuity, repeat this step for each one
    • Add the positive amounts and write the total at (b) in worksheet 1

    Step 5 Total untaxed element

    Add (a) and (b) in worksheet 1.

    Worksheet 1 - Working out the total of untaxed elements and annuity amounts

    Total untaxed element amounts from superannuation income streams
    (from step 3)

    $

    (a)

    Total amounts from annuities (from step 4)

    $

    (b)

    Add (a) and (b)

    $

    (c)

    Write the total from (c) at N item 7.

    If you did not receive any superannuation income stream lump sums in arrears, go to question 8 Australian superannuation lump sum payments 2016.

    Step 6 Taxed element of lump sums in arrears

    Add up all the taxed element amounts that appear under the heading Lump sum in arrears taxable component on your superannuation income stream payment summaries.

    Write the total at Y item 7.

    Step 7 Untaxed element of lump sums in arrears

    Add up all the untaxed element amounts that appear under the heading Lump sum in arrears – taxable component on your superannuation income stream payment summaries.

    Write the total at Z item 7.

    Lump sum in arrears tax offset

    You may be entitled to a tax offset if you received a superannuation income stream lump sum in arrears. However, you need to provide additional information.

    • On a separate sheet of paper
      • print Schedule of additional information – Item 7
      • print your name, address and tax file number
      • write the amount of the payment in arrears for each income year involved
        For example, if you received $900 in 2015-16 as a lump sum in arrears, where $600 of that lump sum is due for 2013-14 and $300 for 2014-15, write 2013-14 $600 and 2014-15 $300. If you do not have that information, contact the payer of your superannuation income stream.
       
    • Attach your schedule of additional information to page 3 of your tax return
    • Print X in the Yes box at Taxpayer's declaration question 2 on page 10 of your tax return

    Tax tips

    You may be entitled to the:

    See also:

    Where to go next

      Last modified: 26 May 2016QC 48494