What are private pensions and annuities?

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.

Leave a Reply

Your email address will not be published. Required fields are marked *