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  • Rounding of withholding amounts

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Withholding amounts calculated by applying this table should be rounded to the nearest dollar. Results of 50 cents or higher are rounded upwards. If a TFN is not provided, ignore cents when calculating withholding amounts.

    Example

    Super lump sum made by a super provider from an element taxed in the fund.

    Heather and Dean are members of the AAFund super fund and are aged 56 and 61 respectively. They have decided to retire and take some of their super as a lump sum. The preservation age for both of them is 55.

    According to their entitlements, Heather and Dean will both receive a super lump sum benefit of $200,000 from AAFund. Each super lump sum benefit has a tax-free component of $20,000 and a taxable component of $180,000. AAFund is required to withhold an amount under the PAYG withholding system. Heather and Dean have previously provided their respective TFNs to AAFund.

    AAFund does not need to withhold from the tax-free component of $20,000, but must withhold an amount from the taxable component of $180,000. The taxable component of the super lump sum benefit paid by AAFund is wholly made up of elements taxed in the fund.

    a Amount to withhold for Heather:
    As Heather is over her preservation age, she is entitled to the low rate cap.

    1. 1 amount up to low rate cap
      ($175,000 in the 2012–13 income year) = nil
    2. 2 amount above low rate cap
      ($180,000 – $175,000) = $5,000
    3. 3 amount to withhold from $5,000 is 16.5%
      (from table A) = $825

    Note: The low rate cap is indexed annually.

    b Amount to withhold for Dean
    As Dean is aged 61 and over the preservation age, no part of his super lump sum payment is subject to withholding.

    End of example

    Payment summaries

    Within 14 days of making a lump sum payment, you must provide a PAYG payment summary – superannuation lump sum (NAT 70947) to the recipient of the super lump sum.

    Payment summaries can also be printed using our approved software.

    Find out more

    For more information and specifications for our approved software, visit Software developers.

    End of find out more

    Preservation age

    Preservation age is determined using your payee’s date of birth. The preservation table below will help with this:

    Date of birth Preservation age

    Before 1/7/1960

    55

    1/7/1960 – 30/6/1961

    56

    1/7/1961 – 30/6/1962

    57

    1/7/1962 – 30/6/1963

    58

    1/7/1963 – 30/6/1964

    59

    After 30/6/1964

    60

    Last modified: 06 Mar 2015QC 25955