Taxation Administration Act Withholding Schedules 2015
Sch 6– Tax table for annuities
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Schedule 6 – Tax table for annuities
This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by paragraph 12-80(b) of Schedule 1 to the TAA.
You should use this table if you pay an annuity that is not a super income stream. For super income stream payments, refer to Tax table for superannuation income streams (NAT 70982).
We have a calculator to help work out the correct amount of tax to withhold from payments to most payees. To access the calculator, refer to Tax withheld calculator.
To work out the withholding amount for an annuity payment that is not a super income stream, you must:
- Work out the amount of income to withhold from using the following formula:
In this formula:
■ deductible 27H amount is the deductible amount for the annuity calculated under section 27H of the Income Tax Assessment Act 1936.
■ number of instalments is the number of instalments of the annuity payable in the income year.
If you do not know the deductible 27H amount, we will calculate it for you. To make this request, the annuity recipient needs to send the information set out in question D11 – Deductible amount of undeducted purchase price of a foreign pension or annuity to the following address:
Australian Taxation Office
PO Box 3578
ALBURY NSW 2640
For more information, refer to Individual tax return instructions supplement and read question D11.
- Use the corresponding PAYG withholding tax table to find the withholding amount. The tax table you use depends on the period which the annuity is paid – for example, weekly or fortnightly.
Some payees may be eligible to claim the seniors and pensioners tax offset (SAPTO). If your payee gives you a Withholding declaration (NAT 3093) indicating that they want to claim a SAPTO entitlement through PAYG withholding, use the Tax table for seniors and pensioners (NAT 4466) to work out the amount to withhold from the income amount calculated in step 1.
These examples use the PAYG withholding tax tables that apply from 1 July 2015.