Superannuation income stream is paid to self funded retirees. Any assessable superannuation income stream (pension) received is reported on a PAYG payment summary. However, for taxpayers who are aged 60 years or ago, no payment summary will be issued where only income from a full taxed fund is received. Under the rules that came into effect on 1st July 2007 taxpayers who are aged 30 years or more will only receive a PAYG payment summary if their superannuation income stream includes an untaxed element which will need to be declared on their tax return.
Component of an income stream are:
• Amounts accrued in the current year
• Offset amount calculated by the fund to limit tax payable
• Amount accrued in prior income year
The tax offset amount on the payment summary is calculated to reflect the age of the recipient and the source of the funds. This amount is calculated by the payer and should be recorded on the tax return.