Under Age 55
A tax offset of 15% applies to the taxed element of the taxable component only if the payment is a disability superannuation benefit, otherwise the tax offset is NIL.
Age 55 to 59
A tax offset of 15% applies only to the taxed element of the taxable component. This applies also to death benefit income streams if both the recipient and the deceased are aged less than 60.
Over Age 60
The taxed element of the taxable component is tax free and therefore the tax offset is NIL. The untaxed element of the taxable component is not tax free and the tax offset is 10%. This also applies to a death benefit income stream if one or both the deceased and the recipient are aged 60 or over.