Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:13:p15
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 13 (pt 15/23)
Character Range: 278681–281205

$95,000.

$108,160 − $95,000 = $13,160

Loraine is paid fortnightly, therefore:

$13,160 ÷ 20 (remaining fortnights) = $658 (ignoring cents)

(ii) Divide the amount calculated at (i) by two.

$658 ÷ 2 = $329 (rounded to the nearest dollar)

(iii) Use the Fortnightly tax table at ato.gov.au/taxtables to calculate the withholding amount relevant to the amount worked out in (ii).

As Loraine has claimed the tax-free threshold the withholding amount is $0.

Note: You will need to provide a PAYG payment summary – superannuation income stream for payments made to the payee before turning 60 and a separate payment summary for payments made to the payee after turning 60, even if the withholding amount is zero.

If a payee only had an untaxed element or a combination of all three elements then you will need to go to part C or part D respectively to work out the withholding after determining the reduced defined benefit income cap. However, the following changes to certain steps in each of these parts will be required:

    * Multiply step 2 of part C or step 1 of part D (the annualised amount) by the percentage of the financial year the payee is 60 years or over (the figure from step 2 in the 'Steps to reduce the defined benefit income cap' section). Use this figure in the relevant steps in part C or part D instead of the annualised amount.
    * In step 2 of part B or step 3 and step 5 of part D, divide the relevant excess amount by the number of the relevant periods in the financial year since the payee turned 60 to the end of the financial year.
    * In step 3 of part C and step 7 of part D, divide the relevant capped offset amount by the number of relevant periods in the financial year since the payee turned 60 to the end of the financial year.

Case E (ii): Turning 60 during the financial year – income stream made up of other components

Using Loraine's circumstances from the previous example, if Loraine receives fortnightly income of $6,000 which was made up of $2,000 tax-free component, $3,000 taxed element and $1,000 untaxed element. Loraine turns 60 on the 12 September 2024.

Step 1: Convert all the components of the income stream to an annualised amount. Total income stream $6,000 × 26 = $156,000

Taxed element $3,000 × 26 = $78,000

Untaxed element $1,000 × 26= $26,000

Tax-free component $2,000 × 26 = $52,000

Step 2: Apply the percentage that Loraine was over 60 to the whole of the annualised income stream $156,000 × 80% = $124,800

Step 3: From step 2 in part D, add together