In MYOB Tax version 2018.0 when calculating the tax-free element for Item 7 : Australian annuities and superannuation income streams, the system does not include the $100,000 benefit cap.

This is happening if you have not completed the new field at Item 7 - Transfer balance cap. Complete this item for the correct calculation.

If you are not sure about what value needs to be entered in Transfer balance cap label use the the ATO calculator : Defined benefit income cap tool to calculate the amount and enter it in MYOB.

To support the new way taxpayers are taxed on the defined benefit income, the ATO has made changes to payment summaries and created a new label 7M in the tax returns for individuals.

You will now need to calculate your client's tax offset and include this amount at label T2.

For more information refer to the ATO newsletter - Tax professionals newsletter, Issue 29 - Join our live webcast – 10 August

Refer to the ATO link - Item 7 - Australian annuities and superannuation income streams 2018 on how to complete this label.