I work full-time and would like to continue doing so up until I am 70. I am currently 64 and will be entitled to received the Defined Benefit Indexed Pension (DBIP) from age 65. I have read that up to around $118k, this payment is not taxable. However, if I continue to work, would I pay tax only on the salary I receive from that employment, or would I be expected to include the DBIP in my overall tax assessment? Thx for any advice.
I have read that up to around $118k, this payment is not taxable.
DB income cap was 118,750 for 2023 - but that does not mean that the pension is non-taxable. It is to determine whether taxpayer is entitle to the 10% offset on an untaxed pension.
A DB pension is non-taxable - unless it is "untaxed." e.g. comsuper.
I have read that up to around $118k, this payment is not taxable.
DB income cap was 118,750 for 2023 - but that does not mean that the pension is non-taxable. It is to determine whether taxpayer is entitle to the 10% offset on an untaxed pension.
A DB pension is non-taxable - unless it is "untaxed." e.g. comsuper.
I'm in UniSuper. So, I understand the DB is "untaxed" up to the $118k threshold. Obviously, any earnings I make from salary (working) are taxable. But the ATO is not interested in the DB unless I go over the $118k threshold for that fund. I hope I have that right. Thx!
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