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9 Income

Last updated 28 July 2020

The taxable income of complying superannuation funds is split into a non-arm's length component and a low tax component.

The non-arm's length component (previously referred to as 'special income') is the fund's non-arm's length income less any deductions that are attributable to that income.

For more information, refer to Net non-arm's length income.

The low tax component (previously referred to as 'standard component') is any remaining part of the fund's taxable income.

Ensure that you write the correct income components against the corresponding income labels, as different rates of tax apply to different income components.

A concessional rate applies to the low tax component, while the non-arm's length component is taxed at the highest marginal tax rate. The rates are set out in Appendix 3: Rates of tax.

Print X in the appropriate box.