• What are the components of a super income stream benefit?

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    A super income stream benefit paid on or after 1 July 2007 may comprise of two components:

    • the tax-free component
    • the taxable component.

    For super income streams that started to be paid before 1 July 2007 the tax-free component will generally comprise the return of the payee’s own contributions made before 1 July 2007 for which they have not claimed a deduction.

    For super income streams that started to be paid on or after 1 July 2007, the tax-free component will comprise the crystallised segment and the contributions segment.

    The tax-free component of a super income stream benefit is not assessable income and is not exempt income.

    The taxable component of a super income stream benefit is the amount of the income stream benefit minus the tax-free component of the benefit.

    The taxable component of a super income stream benefit will generally comprise an element taxed in the fund where the income stream is paid from a taxed source; for example, where the income stream is funded from contributions and earnings that have been subject to tax in a super fund.

    The taxable component of a super income stream benefit will generally comprise an element untaxed in the fund where the income stream is funded from an untaxed source; for example, some state and Commonwealth public sector super schemes.

    Find out more

    For more information, refer to Calculating the components of a super benefit (NAT 71111).

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    Last modified: 10 Nov 2015QC 25956