Things you need to know
If you receive an Australia superannuation (super) income stream, you may be eligible to claim a super income stream tax offset.
Your PAYG payment summary – superannuation income stream shows the tax offset amount available to you on your taxed element. There is a limit on the amount of tax offset you can claim on your untaxed element. This isn't on your payment summary, for more information, see Superannuation income stream tax offset.
If you show an amount at question 7 – label M Assessable amount from capped defined benefit income stream, you're not eligible to a tax offset on the untaxed element amount you show at question 7 – label M. However, you may be eligible to a tax offset on another amount.
If you don't receive an Australian super income stream on a PAYG payment summary – superannuation income stream, see Tax offsets in your supplementary tax return 2025.
Completing your tax return
To complete this question, follow the steps.
To help work out the tax offset amount to report at T2, use the Defined benefit income cap tool or Worksheet 1.
Step 1
At any time in 2024–25 are you both:
- under 60 years old
- not receiving a death benefit income stream where the deceased was 60 years old or older at the time of death?
If your answer to these questions is:
- Yes, add up the tax offsets your payment summaries show.
Add the result to any other amount at Worksheet 1 – row g.
Go to Step 2. - No, go to Step 2.
Step 2
At any time in 2024–25 are you both:
- under 60 years old
- receiving a death benefit income stream where the deceased was 60 years old or older at the time of death?
If your answer to these questions is:
- Yes, add up the tax offsets your payment summaries show, excluding capped defined benefit income stream that is a death benefit income stream where the deceased was 60 years old or older.
Add the result to any other amount at Worksheet 1 – row g.
Go to Step 3. - No, go to Step 3.
Step 3
In 2024–25, did you receive a capped defined benefit income stream with an untaxed element when you're either:
- 60 years old or older
- under 60 years old and you're receiving a death benefit income stream where the deceased was 60 years old or older at the time of death?
If your answer to these questions is:
- Yes, the tax offset amount you need isn't on your PAYG payment summary – superannuation income stream. To work it out, go to Calculate the untaxed element.
- No, add together amounts at Worksheet 1 – row g and transfer to question T2 – label S.
Calculate the untaxed element
Use the Defined benefit income cap tool to calculate the untaxed element of your capped defined benefit income stream.
Defined benefit income cap toolTo manually calculate the untaxed element of your capped defined benefit income stream, complete worksheet 1.
You need the following amounts to complete worksheet 1:
- from question 7, your defined benefit income cap
- from your PAYG payment summary – superannuation income stream
- the total of your taxed element and tax-free components you receive when you're either
- 60 years old or older
- under 60 years old and the income stream was a death benefit income stream where the deceased was 60 years old or older (these amounts are to include lump sum in arrears).
- the total of your untaxed element, including lump sum in arrears, you receive when you were either
- 60 years old or older
- under 60 years old and the income stream was a death benefit income stream where the deceased was 60 years old or older.
- the total of your taxed element and tax-free components you receive when you're either
Transfer the amount at row h to question T2 – label S.
Where to go next
- Go to Tax offsets in your supplementary tax return 2025.
- Return to main menu Individual tax return instructions 2025.
- Go back to question T1 Seniors and pensioners tax offset 2025.