Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:13:p4
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 13 (pt 4/23)
Character Range: 251043–254019

Ignore any cents in an income stream before using any of the steps in this schedule to calculate withholding. Withholding amounts calculated using the steps are rounded to the nearest dollar. Results ending in exactly 50 cents are rounded to the next highest dollar. Do this rounding directly – do not make a preliminary rounding to the nearest cent. Where no TFN has been provided, cents are ignored when withholding amounts are calculated.

Part A

Use this part where the payee is:
    * below 60 years of age and is receiving a super income stream including a death benefit income stream
    * 60 years of age or over and is receiving a super income stream that is not a capped defined benefit income stream with an untaxed element.

Note: If the payee turns 60 during the financial year and is in receipt of a capped defined benefit income stream, then you will also need to complete part E for post-60 income stream payments.

Taxable component contains taxed and untaxed elements

Withholding steps

Step 1: Use the following table to work out which elements of the taxable component withholding applies to.

How to apply withholding when taxable component contains untaxed element
Age of the payee  Taxable component of super income stream contains  Withholding applies to the following element(s)
Untaxed element   Taxed element
Below 60          Yes                                                Yes                                              Sum of untaxed and taxed elements
Below 60          No                                                 Yes                                              Taxed element
Any age           Yes                                                No                                               Untaxed element

Note: Do not withhold where the payee is receiving an account-based super income stream with a taxed element and tax-free component and is aged 60 years or older.

Step 2: Use the appropriate PAYG withholding tax table at ato.gov.au/taxtables to calculate the withholding amount relevant to the amount worked out in step 1. The tax table you use depends on the period the super income stream covers – that is, weekly, fortnightly or monthly.

Note: Some payees aged 60 years or over may be eligible to claim the seniors and pensioners tax offset (SAPTO). If the payee gives you a Withholding declaration indicating they want to claim a SAPTO entitlement through PAYG withholding, you should use Schedule 9 - Tax table for seniors and pensioners to work out the amount to withhold from the amount calculated in step 1.

Step 3: Some payees may be eligible for a tax offset. Use the following table to work out the tax offset amount for the payee.

Super income stream – taxable component
Age of payee            Tax offset
Below preservation age  Nil
60 years or over        Untaxed element × 10%

Super death benefits paid to a dependant
Age of deceased   Age of recipient  Tax offset
Below 60 years    Below 60