LCG 2017/1 – Non-commutable defined benefit income streams
On 28 April 2017 the Commissioner of Taxation finalised and released the Law Companion Guideline LCG 2017/1. This LCG clarifies how the defined benefit income cap applies to superannuation income stream pensions or annuities that are paid from life expectancy or market-linked products that are non-commutable.
The draft guideline states that capped defined benefit income streams cannot, of themselves, result in an excess transfer balance for an individual. Instead, certain amounts are included in assessable income and adjustments are made to the availability of tax offsets.