Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:13:p13
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 13 (pt 13/23)
Character Range: 273998–276522

Step 6: Using the Weekly tax table at ato.gov.au/taxtables the withholding amount relevant to the amount calculated in step 5 is $992.

Calculate the tax offset applicable

Step 7: As Bob's tax-free component is less than the $118,750 cap, then he is entitled to a tax offset limited to the amount up to the cap.

Tax offset = ($118,750 − amount at step 2) × 10%

($118,750 − $30,000) × 10% = $8,875

The tax offset amount is capped at $8,875.

As Bob is paid weekly divide the offset by 52.

$8,875 ÷ 52 = $170 (ignore cents)

Work out the amount to withhold

Step 8: Amount to withhold = withholding amount (step 6) − tax offset (step 7)

= $992 − $170

Total amount to withhold is $822.

Part E

Use this part if the payee:
    * was 60 years or older for the full financial year and they started their capped defined benefit income stream for the first time part-way during the year [complete step 1(a)], or
    * turned 60 during the financial year and are in receipt of a capped defined benefit income stream [complete step 1(b)], or
    * was aged 59 years or younger for the full financial year and has a capped defined benefit income stream that is a reversionary death benefit income stream where the deceased was aged 60 or over at the time of death [complete step 1(c)].

Note: If the payee is in receipt of multiple capped defined benefit income streams (maybe from multiple sources) or where the payee is in receipt of their own income stream at the same time as they are receiving a reversionary death benefit income stream, then the reduction of the cap may not be correct in all circumstances.

Steps to reduce the defined benefit income cap
        Use whichever is applicable to the payee's circumstances:

            * Work out the number of days from when you first paid a super income stream to 30 June 2025.
            * Work out the number of days from your payee's birthday to 30 June 2025.
Step 1      * Work out the number of days from when you first started to pay the reversionary income stream to 30 June 2025.

        Note: Make sure you include the day they turned 60 or the day the income stream starts in your calculations.

        These steps are illustrative for the 2024-25 financial year.
Step 2  Days worked out from step 1 as a percentage of the year (number of days ÷ 365 × 100)
Step 3  Multiply the general defined benefit income cap ($118,750) by step 2. The result is the payee's reduced defined benefit income cap.
Step 4  Work out the withholding amount using the reduced