T2 Australian superannuation income stream 2018

Did you receive an Australian superannuation income stream shown on a PAYG payment summary – superannuation income stream?

No	Go to question Tax offsets that you show on the supplementary section of the tax return, or return to main menu Individual tax return instructions 2018.
Yes	Read on.

Did you show an amount at M item 7 'Assessable amount from capped defined benefit income stream'?

Yes	You are not entitled to a tax offset on the untaxed element that relates to the amount shown at M item 7. Read on.
No	Read on.

You may be entitled to a tax offset. Review the following steps and complete Worksheet 1 below where instructed. 

Step 1

Were you 59 years or younger at any time in 2017–18 and not receiving a death benefit income stream where the deceased was 60 years old or older at the time of death?

Yes	Add up the tax offsets shown on your payment summaries. Add the result to any other amount at g in worksheet 1, then read on.
No	Read on.

Step 2

Were you 59 years or younger at any time in 2017–18 and receiving a death benefit income stream where the deceased was 60 years old or older at the time of death?

Yes	Add up the tax offsets shown on your payment summaries that do not relate to a capped defined benefit income stream that is a death benefit income stream where the deceased died 60 years or older. Add the result to any other amount at g in worksheet 1, then read on.
No	Read on.

Step 3

Were you receiving a capped defined benefit income stream with an untaxed element in 2017–18 where:

• you were 60 years old or older
• you were 59 years or younger and you were receiving a death benefit income stream where the deceased was 60 years old or older at the time of death?

Yes	The tax offset will not be shown on your PAYG payment summary – superannuation income stream. Go to Completing worksheet 1.
No	Add any amount at g in worksheet 1 and transfer to S item T2

Completing worksheet 1

You must now calculate your tax offset on the untaxed element. If your tax offset for a capped defined benefit income stream is shown on your PAYG payment summary – superannuation income stream, you must disregard it. For more information, go to Defined benefit income cap tool.

You will need:

• your defined benefit income cap from question 7.

From your PAYG payment summary – superannuation income stream

• the sum of your taxed element and tax free components, including lump sum in arrears, from the period
  • you turned 60, or
  • you were 59 years or younger and receiving a reversionary income stream where the deceased was 60 years old or older
   
• the sum of your untaxed element, including lump sum in arrears, from the period
  • you turned 60, or
  • you were 59 years or younger and receiving a reversionary income stream where the deceased was 60 years old or older.
   

Worksheet 1

Row	Calculation	Amount
a	Defined benefit income cap (from question 7)	$
b	Total taxed element and tax free components	$
c	If b is greater than a then you are not entitled to an offset on your untaxed element. Write 0 at f and then go to g. Where b is less than a then subtract b from a.	$
d	Total untaxed element	$
e	Write the lesser of c and d.	$
f	Multiply e by 10%.	$
g	Add together any amount from steps 1 and 2.	$
h	Add together f and g. This is your tax offset.	$

Transfer the amount at h to S item T2.

Where to go next

• Go to Tax offsets that you show on the supplementary section of the tax return 2018.
• Return to main menu Individual tax return instructions 2018.
• Go back to question T1 Seniors and pensioners (includes self-funded retirees) 2018.

Provides definitions which will help you determine whether you are eligible for this tax offset.