I have a client who is receiving a capped defined benefit superannuation income stream for a death benefit reversionary income stream.
She is the widow of the original recipient.
She was over 60 when her late husband died (who was also over 60).
Do I include the income as taxable in her return?
If so, is she eligible for a tax offset?
Do I include the income as taxable in her return?
Only if paid from an "untaxed" fund.
If so, is she eligible for a tax offset?
Only if paid from an "untaxed" fund.
In addition to Bruce4Tax's comments - also consider whether the capped defined super income (from all of these income streams) exceeds the defined benefit income cap as this will give rise to additional taxation implications and inclusion of an amount in the client's tax return. This ATO page provides a useful summary:
Transfer balance cap – capped defined benefit income streams | Australian Taxation Office
22 Apr 2024 · 6 min read time
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