Pensions and Annuities
These are non-Government private pension/annuity statements. An annuity is a series of payments, usually purchased with a lump sum payment from a life insurance company. A pension is a series of regular payments, made as a superannuation income stream.
These payments include those paid
- By an Australian superannuation fund, life assurance company, or retirement savings account (RSA) provider
- By a fund established for the benefit of Commonwealth, state, or territory employees and their dependents
- While you were still working
- As a result of someone’s death
In this case, a pension does not include the government’s ‘age pension.’
Most pensions and annuities include both taxable and tax-free components. You do not have to report tax-free components on your tax return. They are shown on your PAYG payment summary, are non-assessable, non-exempt income. However, you must declare the taxable component on your return.