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Exempt current pension income

Claiming a tax exemption for exempt current pension income when your small super fund pays retirement income streams.

Last updated 2 July 2024

Relevant information for complying small super funds with no more than 6 members.

There are 2 methods for calculating the amount of ECPI a fund can claim.

The actuarial certificate is used to calculate the amount of ECPI which can be claimed.

Read examples to help you complete the relevant labels in the SMSF annual return.

If an SMSF has income tax losses (not capital losses) reduce the amount of the loss by the net ECPI amount.

Generally expenses which a SMSF incurs can't be claimed on the SMSF annual return.

The effects of capital gains and capital losses differ depending on which method was used to calculate ECPI.

Non-arm's length income (NALI) and assessable contributions are excluded when you calculate the SMSF's ECPI.