Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:12:p2
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 12 (pt 2/5)
Character Range: 232531–235243

residents who request a departing Australia superannuation payment.

Payments not subject to PAYG withholding

The following super lump sums are not subject to PAYG withholding:

    * a payment made to a person who is suffering from a terminal medical condition
    * a payment made to a dependant after the death of the member or account holder
    * an amount paid to the trustee of a deceased estate after the death of the member.

When a TFN has not been provided

Different withholding rates apply where the payee of the super lump sum has not provided you with their TFN before the payment is made.

Paid to an Australian resident

    * Under 60 years of age:

    –      Taxable component (taxed element and untaxed element) withhold 47% (ignoring cents)

    * 60 years of age or over:

    –      Taxable component

      o        taxed element – no amount is required to be withheld
      o        untaxed element – withhold 47% (ignoring any cents).

Paid to a foreign resident

Check if there is a tax treaty with the payee's country of residence. If the super lump sum is assessable in the other country, no withholding is required.

If the super lump sum is assessable in Australia, use the following withholding rates:
    * Under 60 years of age:

    –      Taxable component (taxed element and untaxed element) withhold 45% (ignoring cents)
    * 60 years of age or over:
    –      Taxable component
       * taxed element – no amount is required to be withheld
       * untaxed element – withhold 45% (ignoring any cents).

Do not allow for any tax offsets or Medicare levy adjustments. Do not withhold any amount for study and training support loans.

Rollovers

If the person entitled to receive the super lump sum asks you to roll over their benefit, you are generally not required to withhold from any of the rolled-over amount.

However, if the rollover benefit consists of a taxable component - untaxed element that exceeds the untaxed plan cap you are required to withhold at the following rates:
    * amount of the untaxed element up to the untaxed plan cap – no amount required to be withheld
    * amount of the untaxed element above the untaxed plan cap – withhold 47%.

A super lump sum death benefit cannot be rolled over – whether paid to dependants or non-dependants.
Example: Rollover contains an untaxed element

Tom asks his fund to roll over his super interest of $1.820 million which consists wholly of a taxable component - untaxed element. The untaxed plan cap amount for 2024-25 is $1.780 million.

These are the amounts required to be withheld:
    * up to the untaxed plan cap = $1,780,000 (no withholding required)
    * above the untaxed plan cap = $40,000