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WHAT ARE THE INCOME CLAIMS FOR THE PENSIONS PAID TO YOU AS A SUPER INCOME STREAM, ANNUITIES AND SOME GOVERNMENT PAYMENTS?

24
May

As a taxpayer, you should announce the incomes that you received from the pensions paid to you as a super income stream, annuities and some government payments. Your amount of tax for retirement income stream is dependent on the type of your income stream. The income streams are mainly two types- 

• Super income stream: Super income stream or pension is a series of regular payments that is paid from a superannuation fund. Your super income stream payment has two different components: one is taxable, that is made up of employer contributions, salary sacrificed contributions and contributions by self-employed persons; another one is tax-free, that is made up of after tax contributions and government co-contributions.
• Annuities: Annuities are income streams that you purchased from life insurance companies in return for lump sum money. Both taxable and tax-free components are included in most of the annuities.

Government payments are another type of benefits that are provided by the government as a pension or support service, which you need to declare on your tax return. However, some of these payments are exempt from income tax but still you need to declare them on your tax return. Government payments include disability support pension, child disability allowance, career adjustment payment, new start and youth allowance etc.