Show download pdf controls
  • PAYG withholding obligations

    Your self-managed super fund (SMSF) has to withhold tax from benefit payments if the member is:

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

    See also:

    When is tax not withheld

    Tax is not withheld if the member:

    • is 60 years old or over and the benefit is from an income stream which is not a capped defined benefit income stream
    • has died and the benefit is paid to a dependent beneficiary as a lump sum
    • has died and the benefit is paid to a dependent beneficiary as an income stream which is not a capped defined benefit income stream and either the dependant or member were 60 years or over
    • has a terminal medical condition
    • died in the line of duty as a member of the defence force, police or protective services and the benefit is paid as a lump sum.

    How to withhold tax

    If you have to withhold tax, you need to:

    • register for pay as you go (PAYG) withholding
    • obtain a tax file number declaration from the member
    • issue a PAYG payment summary to the member for a
      • superannuation lump sum
      • superannuation income stream
       
    • lodge a PAYG withholding payment summary statement with us.

    Next steps:

    See also:

    Last modified: 10 Jan 2018QC 42475