Tax and income streams additional information
Tax free and taxable components
From 1 July 2007 First State Super income stream accounts comprise two components:
- a tax free component and
- a taxable component.
All income stream payments (and lump sum withdrawals) must be drawn proportionately from the tax free and taxable components.
The tax free component is made up of:
- Contributions made from 1 July 2007 which have not been subject to tax in a superannuation fund (eg. after tax contributions and Government co-contributions), and
- A crystallised segment which includes any of the following that were applicable to you as at 30 June 2007:
- pre-July 83 component,
- concessional component,
- post-June 1994 invalidity component,
- capital gains tax exempt component, and
- undeducted contributions since 1 July 1983.
The taxable component is the remainder of your income stream account balance.
Prior to 1 July 2007 the tax free component (called the undeducted purchase price) did not include the pre-July 1983 component of a superannuation benefit. The undeducted purchase price was mostly made up of undeducted (after tax) contributions.
If your pension included an undeducted purchase price, then you were entitled to claim an annual deductible amount which was tax free.
For pensions that commenced prior to 1 July 2007, the tax free component of any pension payment will be calculated by reference to the annual deductible amount until certain events occur.
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