PAYG Payment Summary
If you reached preservation age, have retired, and opted to take money out of your super fund, you will or should have received a PAYG payment summary from your superannuation payer. The payment summary will indicate how you chose to claim your payments, whether as a lump sum or as an income stream.
If you took your payment as a lump sum, the payment summary will list the taxable component of the payment you received in terms of its taxed and untaxed elements. If you are under 60 amounts in the taxable component section of the PAYG are reported as assessable income.
It will also show the amount of any tax withheld by your fund. If a tax was withheld you will need to lodge a tax return. This will ensure that the ATO credits you for the withheld amount and enable you to reduce your tax liability.
If you opted for a pension instead, your PAYG summary will also list any tax withheld, along with any taxable component amounts. In addition, it will show the amount of any tax offset you received. All need to be included on your income tax return.
Both payment summaries will also show the amount of your payment that is a tax-free component. You are not required to show that amount in any part of your tax return.
Read our tax blog for more details.