Paying Tax On Pension Income

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2 Comments

  1. glynn

    Just read your “Paying Tax On Pension Income” and I think the last part could be made more accurate and helpful. See what you think of my understanding please. At the end it says: “If part of your Taxable Component pension income consists of an Untaxed Element (this is fairly uncommon with Account Based and Allocated Pensions), this portion will be taxed at your MTR with no tax offset… If you receive an income from an Account Based or Allocated Pension and you are below your Preservation Age, the income received will be taxed at your MTR with no tax offset”. All the public servant defined benefit schemes have a taxable component that commonly has an untaxed component (unfunded source). These schemes also usually have a 15% tax offset on the taxable component from preservation age to under 60 years of age and a 10% tax offset on the untaxed component over 59 years of age.

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    • Chris Strano

      Hi Glynn
      Thank you very much for your input. The article has been amended accordingly. I have no doubt this will greatly assist those receiving defined benefit income streams.
      Regards
      Chris

      Reply

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