• PAYG withholding obligations

    Your SMSF has to withhold tax from benefit payments if the member is:

    • under 60
    • 60 or over and the benefit is from an untaxed source.

    Tax is not withheld if the member:

    • is 60 or over and the benefit is from a taxed source
    • 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 from a taxed source and either the dependant or member were 60 or over
    • has a terminal medical condition
    • died in the line of duty as a member of the defence force, police or protective service and the benefit is paid as a lump sum.

    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: 09 Nov 2015QC 42475