• Part B: Taxable component contains an element untaxed in the fund

    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

    Step 1 Use the following table to work out which elements of the taxable component are subject to withholding.

    Age Taxable component of super income stream contains Withholding applies to the following amount(s)
    Untaxed element Taxed element

    Below preservation age

    Yes

    Yes

    Sum of untaxed and taxed elements

    No

    Yes

    Taxed element

    Yes

    No

    Untaxed element

    Preservation age to below 60 years of age

    Yes

    Yes

    Sum of untaxed and taxed elements

    No

    Yes

    Taxed element

    Yes

    No

    Untaxed element

    60 years of age and over

    Yes

    Yes

    Untaxed element

    No

    Yes

    No withholding

    Yes

    No

    Untaxed element

    Step 2 Use the appropriate PAYG withholding tax table to calculate the withholding amount relevant to the amount worked out in step 1. The tax table you use depends on the period for which the income stream covers – that is, weekly, fortnightly or monthly.

    Attention

    Some payees may be eligible to claim the SAPTO. If the payee gives you a Withholding declaration indicating they want to claim a SAPTO entitlement through PAYG withholding, you should use the Tax table for seniors and pensioners (NAT 4466) to work out the amount to withhold from the amount calculated in step 1.

    End of attention

    Step 3 Some super income streams may be eligible for a section 301–25, 301–40 or section 301–100 tax offset. Use the following table to work out the tax offset amount for the payee.

    Super income stream – taxable component
    Age Tax offset (section 301-25)

    Below preservation age

    Nil

    Preservation age to below 60 years of age

    Taxed element × 15%

    60 years of age and over

    Untaxed element x 10%

    Disability super income stream – taxable component
    Age Tax offset

    Below preservation age

    Taxed element × 15%

    Preservation age to below 60 years of age

    Taxed element × 15%

    60 years of age and over

    Untaxed element x 10%

    Step 4 Work out the amount to withhold by subtracting the tax offset per payment (step 3) from the withholding amount (step 2).

    Amount to withhold = withholding amount – tax offset

    If the tax offset amount is greater than the withholding amount, the amount to withhold is nil.

    Last modified: 10 Nov 2015QC 25956