How to calculate the ECPI

We have prepared a flow chart to guide you through the basic process of calculating the ECPI - whether you choose the segregated method, the unsegregated method or both.

After the chart, we have further information about key items in the calculation process. Refer to these if you need more information.

SMSF income stream

  1. Running a super income stream
  2. Minimum-pension-payment-requirements
  3. How are expenses treated when an SMSF has ECPI?
  4. Losses
  5. What effect do capital gains and capital losses have on an SMSF's claim for ECPI?
  6. How are assessable contributions and non-arm's length income treated when an SMSF has ECPI

If the market value of the assets supporting an income stream benefit exceeds the member account balance supporting the benefit, the excess amount won’t be considered to be segregated current pension assets.

All assets held to pay the pension should be valued at current market value.

You cannot claim expenses used to derive ECPI. If the fund is not 100% in the pension phase, you should apportion expenses between exempt and non-exempt income.

End of attention
    Last modified: 13 Apr 2015QC 21546