Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:12:p1
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 12 (pt 1/5)
Character Range: 230116–232794

Schedule 12 – Tax table for superannuation lump sums

This schedule applies to withholding payments covered by paragraph 12-85(a) of Schedule 1 to the TAA.

The amounts, formulas and procedures in this schedule were last updated on 1 July 2024.

Using this schedule

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, or 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.

Working out the withholding amount

You must calculate the amount to withhold by applying the rates set out in Table A in this schedule 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 Table A to exclude the Medicare levy of 2%.

Different withholding rates apply for temporary 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