Things to know
Complete this section if Australian annuities (also called non-superannuation annuities) are paid to you by Australian life insurance companies and friendly societies.
An annuity is usually a series of regular payments made to you by a life insurance company or friendly society in return for a lump sum payment.
Most annuities have both taxable and tax-free components.
These payments are shown on your PAYG payment summary – individual non-business.
Taxable annuity payments will be included in your assessable income when received. This includes annuities received by you as a Reversionary beneficiary.
There may be a deductible amount of the undeducted purchase price (UPP).
The UPP is the amount you contributed towards the purchase price of your annuity for which you did not claim, and were not eligible to claim, a tax deduction. The deductible amount is that part of your annual annuity income which represents a return to you of your personal contribution that is free from tax.
Reversionary beneficiary
The person nominated by a super fund member to automatically receive an income stream (pension/annuity) on the death of a member.
Completing this section
You will need your PAYG payment summary – individual non-business that shows the amount of your annuity and its undeducted purchase price (UPP).
We pre-fill your tax return with payment summary information provided to us. Check them and add any Australian annuity payments you received that have not pre-filled.
To personalise your return to show Australian annuity payments, at Personalise return select:
- You had income from Australian superannuation or annuity funds
- Annuities
To show your Australian annuity payments, at Prepare return select 'Add/Edit' at the Income statements and payment summaries banner.
At the Australian annuity payments banner:
- For each payment summary that has not been pre-filled in your tax return, select Add and enter information into the corresponding fields.
MyTax will work out the assessable amount by subtracting the Deductible amount of UPP from the Gross amount of annuity. - Select Save.
- Select Save and continue when you have completed the Income statements and payment summaries section.