• PAYG payment summary – superannuation income stream

    Use this form if you have made superannuation income stream payments, including superannuation income stream lump sum in arrears payments, to a person.

    Super income streams – that did not previously have a withholding obligation – are now subject to withholding even if the amount is nil. Changes also apply to the applicable tax offset.

    You will now need to consider whether withholding applies on all superannuation income stream payments regardless of the member's age and income level.

    You can only pay a superannuation income stream if you are:

    • a superannuation fund
    • an approved deposit fund (ADF)
    • a life insurance company or registered organisation
    • a retirement savings accounts (RSA) provider.

    Do not use this payment summary if you have withheld from payments that are non-superannuation annuities – use the PAYG payment summary – individual non-business (NAT 0046).

    How to obtain this form

    To obtain a printed copy of this form: 

    • use our automated self-help publications ordering service at any time. You need to know the full title of the publication to use this service 
    • phone our Publications Distribution Service on 1300 720 092. You can speak to an operator between 8.00am and 6.00pm Monday to Friday
      • before you phone, check whether there are other publications you may need, this will save you time and help us
      • for each publication you order, you need the full title.
       

    Next step:

    How to complete this form

    You must:

    • write each letter in a separate box
    • use a black pen
    • use BLOCK LETTERS.

    You do not have to complete every field. For example, where an amount has not been paid or withheld, leave those boxes blank.

    Show all amounts in whole dollars – do not show cents. For example, show an amount of $122.76 as $122.

    Avoiding common errors

    Types of common errors

    Action to take

    Do not report negative amounts.

    To amend a previous year's payment summary, see 'Amending payment summaries'.

    Do not report amounts containing a decimal point.

    Do not report cents at any label. Simply drop the cents from any amount before you enter it on the payment summary.

    Do not provide a payment summary containing all zeros.

    If you have not paid the payee any withholding payments throughout the year, you do not need to give them a payment summary.

    At Payment summary for year ending 30 June, do not show the year as anything but a four digit figure.

    Show the year as a four digit figure. For example, show the year ending 30 June 2016 as 2016 and not 16.

    Section A: Payee details

    Tax file number

    You must show the tax file number (TFN) the payee quoted in this field. For example, show a nine-character TFN as:

     Example of the completed Tax File Number field.

    To help us process your form, you must substitute the TFN with the numbers listed below where:

    • a new payee has not made a TFN declaration, but 28 days have not passed, use 111 111 111
    • the payee is under 18 years old and earnings do not exceed $350 per week, $700 per fortnight or $1,517 per month, use 333 333 333
    • the payee is an Australian Government pensioner payee, use 444 444 444
    • the payee chose not to quote a TFN and has not claimed an exemption from quoting a TFN or does not fit into any of the above categories, use 000 000 000.
    Name

    Separate the surname or family name from the given names and print in the appropriate boxes. For example, show Jane Mary Covers as:

     Example showing Covers in the Surname or Family Name field and Jane Mary in the Given Names field.

    Residential address

    You must show the street number and name, suburb/town/locality, state or territory and postcode separately in the boxes provided. For example, show the address 2 Bell St, Ablem WA 6999 as:

     Example showing 2 Bell Street in the Residential Address field, Ablem in the Suburb/Town/Locality field, WA in the State/Territory field and 6999 in the Postcode field.

    Date of birth (if known)

    Provide this information if you have it.
    Use the format DDMMYYYY, for example:

    Example showing 01 in the Day field, 05 in the Month field and 1975 in the Year field.

    Death benefit (Reversionary income stream)

    Is the payee under 60 years old and a death benefits dependant, where the deceased died at 60 years old or over? Yes/No

    Section B: Payment details

    Period during which payments were made

    Show the period during which the payments were made to the payee. Use the format DD/MM/YYYY. For example, show the period 25 September 2017 to 4 January 2018 as:

    Example of the Period during which payments were made field.

    You do not need to show the first and last pay dates for the financial year in this field. If the payee has been employed for the entire year, show the period as 1 July 2017 to 30 June 2018.

    If the payee has turned 60 years old during the year you will need to provide the payee with two payment summaries.

    For example, date of birth 10/12/1957 show:

    • Payment summary 1
      • period 01/07/2017 to 09/12/2017
      • taxed element, untaxed element, tax-free component and tax offset
       
    • Payment summary 2
      • period 10/12/2017 to 30/06/2018
      • taxed element, untaxed element and tax-free component (note no tax offset)
       

    You will also need to provide the payee multiple payment summaries if the payee:

    • has a capped defined benefit interest in their own right and
    • is under 60 years old and in receipt of a reversionary income stream, where the deceased died at 60 years old orover.
    Total tax withheld

    Show the total tax withheld in whole dollars. For example, show $12,672.70 as:

     Example of the completed Total Tax Withheld field.

    Taxable component

    The taxable component is the total of the payment less the tax free component. This amount is assessable income. The taxable component of a superannuation benefit consists of one of the following:

    • taxed element
    • an untaxed element
    • taxed and untaxed elements.

    These two elements should be shown in whole dollars.

    For example, show a superannuation income stream paid to a person 62 years old with a taxable component comprised of a taxed element of $17,553.24 and an untaxed element of $13,669.88 as:

     Example of the Taxable component section with $17,553 in the Taxed Element field and $13,669 in the Untaxed Element field.

    See also:

    Tax free component

    The tax free component of a super income stream needs to be included in your tax return.

    Note: from 1 July 2017, this component needs to be included in an individual’s assessable income in limited circumstances where it is paid under a capped defined benefit superannuation income stream.

    For new superannuation income streams from 1 July 2007, the tax free component is made up of the:

    • contributions segment
    • crystallised segment.

    If there is a tax free component to report show it in whole dollars. For example, show a tax free component of $6,594.55 as:

    Example of the completed Tax-free Component field.

    See also:

    Tax offset amount

    Only include the tax offset amounts for payees who are 60 years old or less.

    Tax offset amounts for income streams other than taxable superannuation death benefits

    The tax offset is an amount equal to:

    • 15% of the taxed element.

    Tax offset amounts for taxable superannuation death benefits income streams

    The tax offset is 15% of the taxed element of the benefit, where the deceased died under 60 years old, and the recipient is under 60 years old.

    Show the amount of the tax offset in whole dollars.

    For example, show a tax offset amount of $3,589.14 as:

    Example of the completed Tax Offset Amount field.

    Example

    Donna became eligible for a 15% tax offset for the taxed element of the superannuation income stream payments she received after she turned 55 years old on 21 September 2015.

    She received a superannuation income stream of $15,250 for the 2014–15 income year. It was not a death or disability superannuation benefit. Her fund made the first payment on 1 August 2015, and she received $2,500 before she turned 55 years old.

    The entire amount of the superannuation income stream is a taxable component consisting wholly of a taxed element. Donna's superannuation fund calculates her tax offset as follows:

    Amount of her superannuation income stream received after she became eligible for an offset:

    • $12,750 (that is $15,250 less $2,500)
    • Tax offset 15% × $12,750 = $1,912
    End of example
    Lump sum in arrears – taxable component

    Do not show amounts of taxed element paid to people on or after the day they turn 60 years old.

    This is the taxable component of payments received as a lump sum (or single payment) for a superannuation income stream amount that accrued in a previous year or years. The taxable component of a lump sum in arrears payment of a superannuation benefit may consist of:

    • taxed element
    • an untaxed element
    • taxed and untaxed elements.

    Show these elements in whole dollars.

    Lump sum in arrears – tax free component

    This is the tax free component of payments received as a lump sum (or single payment) for a superannuation income stream amount that accrued in previous year or years.

    You do not have to complete this field.

    Section C: Payer details

    Payer's Australian business number (ABN) or withholding payer number (WPN)

    As a payer, you must have either an ABN or WPN.

    Show your ABN or WPN as it appears on your activity statement.

    For example show an ABN of 12 345 678 912 as:

     Example of the completed Australian Business Number (ABN) or withholding payer number (WPN).

    Branch number

    If a business has one ABN but multiple branches, each branch has an individual branch number. Show your branch number in the boxes provided. If you do not have a branch number, leave the boxes blank.

    Name

    Show your name as it appears on your activity statement.

    For example, show ABC Pty Ltd as:

    Example of the completed Name field.

    Declaration

    Only the payer, or a person authorised to sign on the payer's behalf, can sign. You can print or type the name of the person authorised to sign the form. You must keep details of the authorised person with your records.

    After completing this form

    PAYG payment summary – superannuation income stream (NAT 70987) is self-duplicating and includes copies for:

    • us
    • the payee
    • the payer.

    You must:

    • give the payee their copy of this payment summary by 14 July following the end of the financial year you made payments to them. However, if the payee requests a payment summary from you in writing before 9 June, you must provide the payment summary to them within 14 days of receiving their request
    • send the ATO original copy to us as part of your PAYG withholding payment summary annual report by 14 August, following the end of the financial year
    • retain the 'PAYG Payer's copy' and keep this for five years.

    Do not send payment summaries printed from your software to us. You must send us the ATO originals.

    Lodging your payment summary information online

    If you have an AUSkey and your payroll software meets our specifications, you can submit your payment summary information to us online using the Business Portal. It is a quick and secure way for you to meet your lodgment obligations.

    By doing this, you do not need to send copies of payment summaries to us, or complete a PAYG payment summary statement.

    See also:

    Amending payment summaries

    You cannot change the information on a payment summary after you have either:

    • given it to the payee
    • provided your PAYG withholding payment summary annual report to us.

    If you find a mistake after giving the payment summary to the payee or us, we recommend you complete a new payment summary, marking the amending a payment summary box as shown:

    Example of the Amending a payment summary box field.

    When you complete an amended payment summary, you must:

    • complete all payee, payment and payer information on each amended payment summary
    • send it to us
    • give a copy to the payee.

    You must show the payee and payer information as it was on the original payment summary. You must send the ATO original to:

    Australian Taxation Office
    Locked Bag 50
    PENRITH NSW 2740

    Where payment amounts or tax withheld amounts have changed, you may also need to complete and send us an amended PAYG payment summary statement (NAT 3447).

    If only the payee or payer information was incorrect, do not prepare a new payment summary. Advise the payee of the correct details and keep them in your files. There is no need to advise us of the corrected details.

    If the payee loses their payment summary, do not issue a new one. Give them a photocopy of your own copy showing all the details from the lost payment summary.

    Last modified: 05 Jul 2017QC 19550