AUSTRALIAN TAXATION - Lump sum paid by a taxed fund to people under the

age of 60 are still taxable

(ASSESSABLE INCOME) - Any lumpsum payment from superannuation should
- Income according to ordinary concepts be included on a separate PAYG payment summary
o Income from services
o Income from business : Attributed Personal Services Income
o Income from property or government - Personal Service Income is a type of income that is
payment mostly earned as a result of an individual’s personal
effort or skills
- Features of ordinary income
o Relation to an income-earning activity : Gross Interest
o There is no capital in nature - Interest paid or credited from any source in
o In general, periodic, recurring and regular Australia, including accounts and term deposits held
with financial institutions in Australia
: Employer Lump Sum Payments and Employment - This includes any ATO interest on early payments
Termination Payments and overpayments reflected on an ATO statement of
- Unused annual and long service leave paid out on account or notice of assessment. It is critical to gross
termination of employment up interest where TFN withholding tax has been
deducted
: Allowance, earnings, tips, director’s fees etc.
- Allowances are the extra payments the employer : Dividends
pays and report separately on a client’s statement, - Dividends and distribution that were paid or credited
including car, travel, clothing and laundry or to you by Australian companies that you had share in
depending on working conditions and special duties
(first aid certificate or safety officer) : Distribution received from a Partnership/Trust
- Details about the partnerships, trust, or managed
: Australian Government Allowance and Payments investment trust fund distribution, as well as the
- Newstart allowance types of income received are indispensable.
- Youth allowance
- Austudy payment : Net income or loss from Business
- Parenting payment - If the taxpayer earned revenue from a business
- Partner allowance (other than personal service income), complete the
- Sickness allowance business and professional items schedule. Net
- Special benefit income or loss from a primary production business
- Widow allowance and a non-primary production business must be
- Farm Household allowance disclosed separately.

: Australian Annuities and Superannuation Income Streams

- Australian annuities (non-super annuities)
o Australian life insurance firms and friendly
societies pay for it

- Superannuation income streams

o Australian super funds, retirement savings
accounts, and life insurance companies pay
for it.

: Australian Superannuation Lump Sum Payments

- Superannuation lump sum payments paid from a
taxed source to people above the age of 60 are tax-
free