Sch 12– Tax table for superannuation lump sums

Schedule 12 – Tax table for superannuation lump sums

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 12-85(a) of Schedule 1 to the TAA.

You should use this schedule if you make a super lump sum payment to an individual.

This schedule also provides information on the withholding requirements when an untaxed element of super interest is rolled over.

Super lump sums

A super lump sum payment includes a:

■ lump sum member benefit paid to an individual where a condition of release has been satisfied - for example, retirement, terminal medical condition, severe financial hardship, compassionate grounds

■ lump sum death benefit paid to an individual following the death of the member or account holder

■ commutation of a super income stream (part or all of a super income stream is exchanged for a lump sum).

A super lump sum may be paid from a super fund, approved deposit fund (ADF) or a retirement savings account (RSA).

Components of a super lump sum

Before you can work out the withholding amount, you must calculate the components of the super lump sum.

A super lump sum may have two components:

■ a tax-free component

■ a taxable component which can include an

 element taxed in the fund (taxed element)
 element untaxed in the fund (untaxed element).

You do not withhold from the tax-free component.

You must calculate the amount to withhold by applying the rates set out in table A if your payee:

■ is an Australian resident

■ receives a taxable component of a super lump sum

■ has provided you with their TFN.

These rates include the Medicare levy of 2%.

If the payment is to be made to a foreign resident you will need to check if there is a tax treaty with their country of residence. The full list of our tax treaties is maintained by Treasury and can be found in the Australian Tax Treaties table. If, because of the treaty, the super lump sum is assessable only in the other country, then no withholding is required.

If a foreign resident's super lump sum is assessable in Australia, you are required to withhold from the payment. Adjust the rates set out in to exclude the Medicare levy of 2%.

<table cellspacing="0" cellpadding="0" style="border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td style="border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Type of payment and tax component</span></p></td><td style="border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Age of person at the date the payment is received</span></p></td><td style="border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Amount subject to PAYG withholding</span></p></td><td style="border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Rate of withholding</span></p></td></tr><tr><td rowspan="4" style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Member benefit – taxed element of the taxable component</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold">Under </span><a href="#Preservationage" style="text-decoration:none"><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold; text-decoration:underline; color:#0000ff; background-color:#ffcc99">preservation age</span></a></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Whole amount</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">22%</span></p></td></tr><tr><td rowspan="2" style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Preservation age to 59 years</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount up to low rate cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">Nil</span></p></td></tr><tr><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount above the low rate cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">17%</span></p></td></tr><tr><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">60 years and above</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Whole amount</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">Nil</span></p></td></tr><tr><td rowspan="7" style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Member benefit – untaxed element of the taxable component</span></p></td><td rowspan="2" style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Under preservation age</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount up to untaxed plan cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">32%</span></p></td></tr><tr><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount above untaxed plan cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">47%</span></p></td></tr><tr><td rowspan="3" style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Preservation age to 59 years</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount up to low rate cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">17%</span></p></td></tr><tr><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount above the low rate cap up to the untaxed plan cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">32%</span></p></td></tr><tr><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount above untaxed plan cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">47%</span></p></td></tr><tr><td rowspan="2" style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">60 years and above</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount up to untaxed plan cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">17%</span></p></td></tr><tr><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Amount above untaxed plan cap</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">47%</span></p></td></tr><tr><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Member benefit – total of preserved benefits is less than $200</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Any age</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Nil – amount is</span><br><span style="font-family:Arial, sans-serif">non-assessable, non-exempt income</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">N/A</span></p></td></tr><tr><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold">Member benefit – </span><a href="#TMC" style="text-decoration:none"><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold; text-decoration:underline; color:#0000ff; background-color:#ffcc99">terminal medical condition</span></a><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold"> payment</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Any age</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Nil – amount is</span><br><span style="font-family:Arial, sans-serif">non-assessable, non-exempt income</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">N/A</span></p></td></tr><tr><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold">Death benefit paid to a </span><a href="#Dependant" style="text-decoration:none"><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold; text-decoration:underline; color:#0000ff; background-color:#ffcc99">dependant</span></a><span style="font-family:Arial, sans-serif; font-size:11pt; font-weight:bold"> – taxed and untaxed elements of the taxable component</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Any age</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Nil – amount is</span><br><span style="font-family:Arial, sans-serif">non-assessable, non-exempt income</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">N/A</span></p></td></tr><tr><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Death benefit paid to a non-dependant – taxed element of the taxable component</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Any age</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Whole amount</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">17%</span></p></td></tr><tr><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Death benefit paid to a non-dependant – untaxed element of the taxable component</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Any age</span></p></td><td style="border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">Whole amount</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">32%</span></p></td></tr><tr><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Death benefit paid to the trustee of the deceased estate</span></p></td><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt; background-color:#b2b2b2"><span style="font-family:Arial, sans-serif; font-weight:bold">Any age</span></p></td><td style="border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; font-size:11pt"><span style="font-family:Arial, sans-serif">None</span></p></td><td style="border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:10pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">Nil</span></p></td></tr></tbody></table> ```