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As Untaxed component of the Income stream paid after 60 is taxed to the member at marginal rates but a 10% tax offset is allowed. If ECPI is part of the taxable component then it will be considered as Untaxed component because no tax is being paid no this by the SMSF. Please share your understanding.
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Hi Gulshan
ECPI is exempt current pension income and should not relate to the untaxed component. ECPI relates to the investment income tax that is tax free & the untaxed component normally refers to part of the member's balance.
Sorry, I may be not understanding your question.
Thanks
SMSF AAA
Hi Gulshan
I am not sure if I understand the question fully.
Firstly I agree if you receive an untaxed income stream and you are age 60 or older it is taxed at your marginal tax rate less a 10% tax rate. I have never seen an untaxed income stream in a SMSF but assume it could occur if the SMSF received a rollover in the past with an untaxed component. Most SMSF's have a tax free component and a taxed component that makes up a member's balance. As I noted above it is rare (in my opinion) for a SMSF to have a untaxed component of their members balances. It would be great to get other members view re this issue.
Can you please explain your ECPI query further re the taxable component if the above has not assisted with your query.
Thanks
SMSF AAA