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  • Schedule 12 – Tax table for superannuation lump sums

    Attention

    For payments made on or after 1 July 2015 to 30 June 2016

    This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by paragraph 12-85(a) of Schedule 1 to the TAA.

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    Using this table

    Attention

    Warning:

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

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    You should use this table if you make a super lump sum payment to an individual.

    Super lump sums

    A super lump sum payment includes lump sum payments paid to an individual who has satisfied a condition of release. For example, retirement or death and lump sum payments to the trustee of a deceased estate.

    The following lump sum payments from a super fund, approved deposit fund, retirement savings account or any other super product are subject to withholding:

    • payments made to a person because they are a member of a super fund, a depositor of an approved deposit fund, or a holder of a retirement savings account or any other super product
    • some super lump sum payments paid on the death of one person if paid to another person
    • a payment when a super pension is exchanged for a lump sum.

    A super lump sum paid to the trustee of a deceased estate after the death of a person is not subject to PAYG withholding.

    Attention

    Lump sum payments from a complying super fund made to individuals who are suffering from a terminal medical condition do not have amounts withheld from them.

    Do not allow for any tax offsets or Medicare levy adjustments. Do not withhold any amount for:

    • Higher Education Loan Program (HELP) debts
    • Trade Support Loan (TSL) debts
    • Financial Supplement debts.
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    Working out the withholding amount

    When a TFN is provided

    Calculating a withholding amount for super lump sum

    If your payee receives a super lump sum and has provided you with their TFN, you must calculate the amount to withhold by applying the rates set out in table A.

    A super lump sum can be made up of two components:

    • a tax-free component
    • a taxable component (consisting of taxed and untaxed elements).

    You may be required to withhold an amount from the taxable component, including a super lump sum death benefit paid to a non-dependant. Do not withhold from the tax-free component.

    If the person entitled to receive the super lump sum asks you to roll over their lump sum, you are generally not required to withhold from any of the rolled over amount. However, you may be required to withhold if the benefit being rolled over consists of an amount that is an untaxed element that exceeds the untaxed plan cap.

    Attention

    A super lump sum death benefit cannot be rolled over – whether paid to dependants or non-dependants.

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    When a TFN has not been provided

    If your payee has received a super lump sum and has not provided you with their TFN before the payment is made, you must withhold the following:

    • 49% from the taxable component in a payment to a resident payee (ignoring any cents)
    • 47% from the taxable component in a payment to a foreign resident payee (ignoring any cents).
    Attention

    If your payee is over 60 years of age at the date the payment is received, and the lump sum does not contain an untaxed element, you are not required to withhold where they have not provided their TFN.

     

    If the lump sum contains an untaxed element, you are required to withhold from this element at 49% for resident payees or 47% for foreign resident payees (ignoring any cents).

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    Last modified: 15 Jun 2016QC 45530