Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:13:p18
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 13 (pt 18/23)
Character Range: 285759–288368

or an untaxed element, then you will need to go to part B or part C respectively to work out the withholding after determining the reduced defined benefit income cap. However, the following changes to certain steps in each of these parts will be required:

    * In step 1 of part B and step 2 of part C instead of converting the income stream payment to an annualised amount, use the 'Conversion table' below in this schedule for income streams commencing during current financial year to work out the converted amount of the super income stream. Use this figure in the relevant steps in part B or part C instead of the annualised amount.
    * In step 2 of part B, divide the relevant excess amount by the number of remaining periods in the financial year since the income stream started or the payee turned 60 to the end of the financial year. Use the 'Conversion table' for income streams commencing during current financial year to work out the appropriate date.
    * In step 3 of part C, divide the relevant capped offset amount by the number of remaining periods in the financial year since the income stream started or the payee turned 60 to the end of the financial year. Use the 'Conversion table' for income streams commencing during current financial year to work out the appropriate date.

Example: Case E (v): Reversionary death benefit income where the payee is under 60 years of age and the deceased was at least aged 60

Freya, 57, receives a defined benefit income stream in her own right, and her income stream is taxed under part A of this schedule.

Freya's partner died on 27 February 2025; Freya's partner was aged 61 at the time of death and was in receipt of a defined benefit income stream with both tax-free components and taxable components. Freya is now entitled to a reversionary death benefit income stream.

As Freya has an existing capped defined benefit income stream, Freya's reversionary death benefit income stream will be subject to additional taxation arrangements.

Freya's reduced defined benefit income cap for the 2024-25 financial year is worked out as follows, based on her reversionary death benefit income stream:

    * Step 1: Number of days from Freya's first income stream payment to 30 June 2025 is 124
    * Step 2: Step 1 result expressed as a percentage of the year: 124 ÷ 365 = 33.973%
    * Step 3: Multiply the general defined benefit cap by step 2 result: $118,750 × 33.973%

  Freya's reduced defined benefit income cap is $40,342.

Freya was also receiving a defined benefit income stream in her own right, her defined benefit income cap will be