Applying the Australian Super annuity/income stream offset and Defined benefit cap

1. Open the individual tax return and click any label at item 7 to open the Annuities and superannuation income stream (asi) worksheet.
2. Choose the Type of Payment then enter the Payer's name, ABN and the Total tax withheld.
3. In the Capped defined benefit income stream – After 60th birthday or reversionary fields, enter the:
   • Taxed element
   • Untaxed element
   • Tax-free element

Any amounts entered at Taxed element amount paid at or after 60th birthday or other eligible defined benefit income stream received or Tax-free element also appears in the Total tax free and taxed element amount paid at or after 60th birthday field to calculate any assessable income.

For most taxpayers, the defined benefit income cap is $100,000. However, for some individuals this amount is less – for example, if you started receiving income from a capped define benefit income stream part-way through the year, the cap may be pro-rated.

To work out the Defined benefit income cap for the year, use the ATO Defined benefit income cap tool.

Any Assessable amounts are then shown at item 7 label M.

1. At item T2 - Australian superannuation income stream, click label S. The Annuity and Super Income Stream Offset window appears.
2. Choose the reason for offset.
3. Enter the Taxed, Untaxed and Tax-free amounts.
   

   

4. Click OK. The tax offset calculates.
5. Click Close. The offset (if applicable) appears at Item T2 label S.