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  • PAYG withholding obligations

    You must withhold tax from benefit payments to members who are:

    • under 60 years old
    • under 60 years old and receives a reversionary capped defined benefit income stream – if the deceased was 60 years or over when they died
    • 60 years old or over – if the benefit is from a capped defined benefit income stream.

    If you have to withhold tax, you need to:

    Provide information to the recipient of the benefit

    When you pay a super benefit that contains an assessable amount you must give a payment summary to the recipient covering the details of the payment, including:

    • tax-free component
    • taxable component
    • tax offset (if applicable)
    • tax withheld (if applicable).

    For income streams you must provide a PAYG payment summary by 14 July following the end of the financial year in which the payment was made.

    For lump sums you must provide a PAYG payment summary within 14 days of making the lump sum payment.

    You should provide a separate payment summary if:

    • they are receiving a superannuation income stream and the member is 59 years or younger
    • they are receiving a capped defined benefit income stream and the member is 60 or over and is in receipt of a capped defined benefit income stream
    • the member is 59 years or younger and is in receipt of a reversionary capped defined benefit income stream where the deceased was aged 60 or over at the time of death
    • a super lump sum was paid to    
      • a non-dependant in the event of another person's death
      • the trustee of a deceased estate.

    Payment summaries should be issued in the situations listed above even if no tax has been withheld.

    A payment summary is not required where a lump sum is paid to a member because of a terminal medical condition.

    See also:

    Last modified: 20 Aug 2018QC 45251