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  • 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.

    You can only pay a super 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.

    You are required to provide a payee with a superannuation income stream payment summary in the following circumstances:

    • The payee is less than 60 years old
    • The payee is aged 60 years or older and is in receipt of a capped defined benefit income stream
    • The payee is aged 60 years or older and has an untaxed element from a non-capped defined benefit income stream.

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

    Find out about:

    How to obtain this form

    To obtain a printed copy of this form:

    How to complete this form

    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.

    Find out about:

    Avoiding common errors

    Common errors and correct actions

    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 2018 as 2018 and not 18.

    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 'Cover's in the Surname or family name field and 'Jane Mary' in the Given name(s) 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 with Date of birth (if known) question 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?

    This is used to calculate the payee's defined benefit income cap for payee's receiving capped defined benefit income streams.

    Answer 'Yes' to this question if the payee is receiving a reversionary capped defined benefit income stream and is under 60 years old, and where the deceased died at 60 years or over.

    Answer 'No' to this question where any of these apply:

    • the member is 60 years old or over
    • the member is not in receipt of a reversionary income stream
    • the member is under 60 years old and a death benefits dependent, but the deceased had not yet turned 60.

    Death benefit (Reversionary) income stream

    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 a payee receiving an account based pension income stream you are only required to provide the payee with a payment summary where you have a withholding obligation.

    For a payee receiving a capped defined benefit income stream, the period that you report on your payee's payment summary will affect their defined benefit income cap.

    Where the payee:

    • has been in receipt of a super income stream for the entire year, show the period as 1 July to 30 June
    • starts the super income stream during the year, show the starting date of the first payment
    • has a super income stream prior to turning 60 during the financial year, show the period prior to turning 60, the end date will be the day before the payee's birthday
    • has a capped defined benefit income stream after turning 60 in the financial year, the period should be the payee's birthday to the end of the period
    • has a reversionary death benefit income stream, then the start date is the later of 1 July in that financial year or the date the deceased died
    • ends the super income stream during the year, show the date of the last payment.

    For example, a part year period of 25 September 2017 to 4 January 2018 is shown as:Example of the Period during which payments were made field.

    You will need to provide the payee with multiple payment summaries in the following circumstances:

    • the payee is in receipt of a capped defined benefit income stream and they turned 60 during the year. You will need to provide one payment summary for the period they were 59 and a second payment summary for the period they were 60
    • the payee is under 60 and receives their own income stream and also a death benefit capped defined benefit income stream (reversionary) where the deceased was 60 or older at the time of death. You will need to provide two payment summaries, one for each income stream
    • the payee turned 60 during the year and is in receipt of their own income stream and a reversionary income stream where the deceased was 60 or older at the time of death. You will need to provide four payment summaries. One payment summary for the period the payee was 59 and a second payment summary for the period the payee was 60, for each capped defined benefit income stream.

    Example

    Bill turned 60 on 12 September 2017. He is in receipt of a reversionary capped defined benefit income stream where the deceased was 61 years old at the time of death. Bill also has a capped defined benefit income stream in his own right from the same provider.

    The provider will need to provide Bill with:

    Bill's own income stream payment summaries

    • Payment summary 1 for the period 1 July 2017 to 11 September 2017 (the day before Bill's birthday). The death benefit (reversionary income stream) field will indicate 'no' on this payment summary.
    • Payment summary 2 for the period 12 September 2017 (Bill's birthday) to 30 June 2018. The death benefit (reversionary income stream) field will indicate 'no' on this payment summary.

    Reversionary capped defined benefit income stream payment summaries

    • Payment summary 3 for the period 1 July 2017 to 11 September 2017 (the day before Bill’s birthday). The death benefit (reversionary income stream) field will indicate 'yes' on this payment summary.
    • Payment summary 4 for the period 12 September 2017 to 30 June 2018. The death benefit (reversionary income stream) field will indicate 'no' on this payment summary as the field is only required where the payee is in receipt of an income stream before turning 60.
    End of example

    Note: The Death benefit (Reversionary income stream) field and the periods that you report on your payee's payment summary will assist your payee in calculating their defined benefit income cap and their assessable capped defined benefit income, where applicable.

    Example

    • Anna turned 60 on 10 December 2017. She received an account based pension income stream for the full financial year. The income stream provider will need to provide Anna with a PAYG payment summary - superannuation income stream:
      • for the period from 1 July 2017 until 9 December 2017, the day before Anna turned 60
      • that shows the taxed element amount and a tax offset amount for that period
    • The income that Anna received after her 60th birthday is considered to be non-assessable non-exempt income.
    End of example
    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 showing $12,672.

    Taxable component

    The taxable component of a super benefit may consist of a taxed element and/or an untaxed element, depending on whether the benefit is paid from a taxed or untaxed source. The taxable component of a super benefit consists of the following:

    • taxed element
    • an untaxed element.

    The taxed element and untaxed element should be shown in whole dollars.

    For example, show a super capped defined benefit 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

    For super 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 showing $6,594.

    See also:

    Note the tax-free component will now be taken into consideration when your payee calculates their additional assessable amount from a capped defined benefit income stream.

    Tax offset amount

    You only need to report a tax offset amount where the payee is under 60 years old, has a taxed element and:

    • is above the preservation age or is in receipt of a disability super income stream, and
    • the income stream is not a reversionary capped defined benefit income stream where the deceased was over 60 at the time of death.

    The tax offset is an amount equal to 15% of the taxed element.

    Where the payee is over 60, or is under 60 and in receipt of a reversionary income stream where the deceased was over 60, do not show the tax offset for a capped defined benefit income stream.

    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 showing $3,589.

    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 2017.

    She received a super income stream of $15,250 for the 2017–18 income year. It was not a death or disability superannuation benefit. Her fund made the first payment on 1 August 2017, and she received $2,500 before she turned 55 years old.

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

    Amount of her super 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

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

    Show this amount in whole dollars.

    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.

    If you download and print this form, you can make a copy of the ATO original for your records and the payee.

    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 along with your PAYG payment summary statement 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 payment summary annual report to us.

    How you correct a mistake depends on what type of mistake it was.

    See also:

    Last modified: 04 Jun 2018QC 19550