|
Source |
Tax free component |
Taxable component |
|
Crystallised segment (all values calculated as at 30 June 2007) |
UDC, pre-July 83 component, concessional component, post June 1994 invalidity component, CGT exempt amounts. |
Value of super interest less tax free component |
|
Contributions segment |
NCCs and other contributions not included in assessable income made on or after 1 July 2007. |
|
|
Other |
Tax-free component of rollovers within super system after 1 July 2007 Excess untaxed roll-over amounts |
Proportional component method for benefits
- The tax components of superannuation benefits are required to be paid in proportion to the tax free and taxable components of the member’s superannuation interest in the fund. In the case of a:
- lump sum or rollover, the components will generally be determined in the same proportion as the components of the member’s superannuation interest in the fund at the time of payment.
- income stream, the payments (including pension and lump sum payments) are paid in the same proportion as the tax free and taxable components of the superannuation interest at the time the pension commenced (or at the time of a trigger event in the case of a pension that commenced before 1 July 2007).
Income streams
Special rules may apply to income streams, depending on the income stream’s commencement date.
|
Commencement date of income stream |
Component calculation method |
|
On or after 1 July 2007 |
Proportional component method |
|
Before 1 July 2007 and subsequent trigger event occurred. Trigger events include:
Before 1 July 2007 and no trigger event. |
Proportional method where tax free component at time of trigger event = Unused Undeducted Purchase Price (UPP)
= UPP – RCV
Where RCV = Residual capital value Relevant number = the life expectancy of the recipient or of the reversionary beneficiary (if any) if this is longer, at the commencement date of the income stream. Note1: UPP depends on commencement date of income stream – refer table below Note2: The pre July ‘83 component is not included for pensions that were purchased prior to 1 July 1994 or pensions purchased after that date wholly with a pre 1994 pension rollover amount. |
Calculation of Undeducted Purchase Price (UPP)
|
Date of commencement |
Tax purposes |
|
Pre 1 July 94 |
pre-July ’83 + concessional + undeducted contributions |
|
1 July 94 – 30 June 973 |
undeducted contributions |
|
1 July 94 – 4 June 983 |
undeducted contributions + CGT exempt |
|
After 4 June 98 |
undeducted contributions + CGT exempt + post-June ’94 invalidity |
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