Hi ,
I receive a defined benefit Indexed pension (DBIP) and am over 60 years. The publications from my super fund states that lifetime pensions such as DBIP is "not assessable income and is exempt from tax". However, when I received my PAYG payment summary from the super fund, the full amount of pension I received for Year ended 2024 was included under "TAXED ELEMENT". When my accountant completed my tax return he included the full pension as assessable income.
Hence, my confusion, the material from the superfund states that the DBIP is not assessable but the same super fund has included it as a taxed element in the PAYG summary.
This seems contradictory to me.
Can someone explain/clarify this situation?
When I contacted the ATO, they referred me to the Defined Benefit Income cap tool. I completed this tool with all the information I received from the PAYG summary. Interestingly, this tool calculated a completely different Taxed element amount to be included in my tax return. In fact, it was approximately 5 times lower than the TAXED ELEMENT figure in my PAYG summary.
Which figure do I include in the tax return?
Again, any clarification would be very useful.
Thank you
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