T2 Australian superannuation income stream 2021

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

No	Go to Tax offsets that you show on the supplementary section of the tax return, or return to main menu Individual tax return instructions 2021.
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. However, you may be entitled to a tax offset on another amount. Read on.
No	Read on.

Step 1

Were you:

• under 60 years old at any time in 2020–21, 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. Read on.
No	Read on.

Step 2

Were you:

• under 60 years old at any time in 2020–21, 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 was 60 years old or older. Add the result to any other amount at g in worksheet 1. Read on.
No	Read on.

Step 3

In 2020–21, did you receive a capped defined benefit income stream with an untaxed element when:

• you were 60 years old or older, or
• you were under 60 years old 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 amount you need is not shown on your PAYG payment summary – superannuation income stream. Go to Completing worksheet 1 to work it out.
No	Add together amounts 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 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 sum of your taxed element and tax free components you received when you were
    • 60 years old or older, or
    • 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 sum of your untaxed element, including lump sum in arrears, you received when you were
    • 60 years old or older, or
    • under 60 years old and the income stream was a death benefit 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	Your 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	Your 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 2021.
• Return to main menu Individual tax return instructions 2021.
• Go back to question T1 Seniors and pensioners (includes self-funded retirees) 2021.

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