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  • CRT Alert 056/2018

    15 June 2018

    PAYG Withholding variation for income stream beneficiaries who turn 60 during the financial year

    From 1 July, payers of superannuation income streams can reduce the rate of withholding for income stream beneficiaries who turn 60 during a financial year. This allows for a more accurate amount of withholding for beneficiaries by taking into account all of their circumstances.

    This change is in accordance with the new Legislative Instrument ‘PAYG Withholding variation to the rate of withholding for income stream beneficiaries who turn 60 during a financial year’ which will be registered with the Federal Register of Legislation in the week commencing 18 June 2018.

    This instrument applies to the taxed element of the taxable component of payments that:

    • are superannuation income streams covered by paragraph 12-80(a) of Schedule 1 to the Taxation Administration Act 1953
    • consist of a taxed element only
    • are paid to a payee who is aged 59 years on 30 June immediately before the start of the relevant financial year; and
    • do not exceed the defined benefit income cap.

    The amount to be withheld from the taxable component of these payments is the amount calculated using rules for calculating varied withholding amount.

      Last modified: 18 Jun 2018QC 56023