PAYG withholding obligations

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 payment summary if:

  • the member is under 60
  • the member is 60 or over and the taxable component contained an untaxed element
  • 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: 08 Sep 2015QC 45251