This concession applies only to superannuation lump sums paid to you when you are 55 to 59 years old, that is, when you have reached your preservation age (55 years old) but before you turn 60 years old.
The low-rate cap is the maximum amount of taxable components (taxed and untaxed elements) that can be taxed at a concessional lower rate.
For 2010-11, the low-rate cap is $160,000, but it could be less for you if before July 2010 you received a superannuation lump sum after your 55th birthday.
The low-rate cap is a 'lifetime' limit. This means that the taxed element and untaxed elements of all superannuation lump sum payments that you receive when you are 55 to 59 years old will be taxed at a concessional rate until their total reaches the low-rate cap amount. Payments you receive in excess of the low-rate cap will be taxed at the tax rate shown in table 1.
Consequently, for 2010-11 the maximum amount for which you can be taxed at a concessional rate is $160,000 less any amount to which the concessional tax rate has previously been applied.