• 10. Income

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    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.

    if any assessable income is non-arm’s length income of a complying fund, complying ADF or PST that amount should be included at U Net non-arm’s length income and not at any other label.

    See also:

    U 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 show 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.

    Last modified: 02 Jun 2014QC 35420