10 Oct 2019 Exempt current pension income
Ordinary and statutory income that a SMSF earns from assets held to support retirement-phase income streams is exempt from income tax. This income is called exempt current pension income (ECPI).
ECPI doesn't include assessable contributions or non-arm's length income (NALI).
Your client may be able to claim a tax exemption for exempt current pension income once their SMSF starts paying retirement phase income streams (commonly referred to as pensions). Find out more here.