You may earn your income in more ways than just from your job and ignorance is not an excuse from the ATO. There are many ways people may make an income and it all adds to your taxable income.
Super Pensions, Annuities and Government Payments
Superannuation income streams
There are many forms of income, and superannuation, annuities and government payments make up three of them. These payments could include a lump sum payout, or an amount received as a pension. This doesn’t include government payments such as the age pension.
Superannuation income streams include Australian super funds, life assurance companies or retirement savings accounts (RSA) providers, or established Public Sector Superannuation Schemes. You’ll also need to declare a death benefit income stream if you have one.
Your tax return will require the details of your taxed, untaxed and tax-free component of your superannuation payment, from which your tax agent will calculate your assessable income. You may be eligible to receive a tax offset – which have recently changed.
An annuity is usually a series of regular payments to you by a life insurance company in return for a lump sum payment. Most annuities have both taxable and tax-free components.
Your assessable income will include your taxable annuity payments received. This includes annuities received by you as a reversionary beneficiary (the person who will continue to receive a member’s pension when the member dies)
The age pension, carer payments, Austudy, Newstart and Youth Allowance should be included on your tax return as declarable assessable income. Some Government payments will be exempt and your tax agent can assist with determining what these payments are.
Investment income that is either paid directly to you or through a partnership distribution or trust is declarable. If in doubt, you can contact your ITP The Income Tax Professional Tax Agent throughout the year for free. They’ll be able to advise you with any questions you may have.
There’s no doubt that lodging a tax return can be complex, especially when several streams of income need to be declared. Tax agents are fully certified accountants who are specialised in tax law. They understand the latest changes and what you need to include on your return – even if you don’t. All ITP Income Tax Professionals branches are registered with the Tax Practitioners Board of Australia. Book an appointment and speak with our professional tax accountants today.