1 July 2019 – 30 June 2020
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Age
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Tax free component
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Taxable component
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Element taxed
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Element untaxed
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Under preservation age
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Non-assessable non-exempt income
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20%1
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30%* up to $1,515,0002
45%* above $1,515,0002
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Preservation age to 59
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Non-assessable non-exempt income
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0% up to $210,0003
15%* above $210,0003
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15%* up to $210,0003
30%* $210,0005 to $1,515,0002
45%* above $1,515,0002
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Aged 60 and over
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15%* up to $1,515,000
Non-assessable non-exempt income
45%* above $1,515,000
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- Plus Medicare levy
- Untaxed plan cap applicable in 2019/20. Indexed annually with AWOTE, rounded down to nearest $5,000. This is a lifetime cap that applies on a per plan basis.
- Low rate cap applicable in 2019/20. Indexed annually with AWOTE, rounded down to nearest $5,000. This is a lifetime cap, reduced by earlier taxable lump sum member payments.
Notes:
- If no TFN is quoted, tax on the taxable component of member benefits should be withheld at highest MTR (plus Medicare levy) for taxpayers under age 60. For those 60 or over who have not quoted their TFN, only the element untaxed (if any) will be subject to withholding at the highest MTR (plus Medicare levy).
- For non-residents, tax arrangements in the taxpayer’s country of residence will depend on the relevant legislation in that country. If there is a double tax agreement (DTA) between Australia and the country of residence, and the lump sum is also subject to tax in that country, the taxpayer may be eligible to claim a tax credit/deduction for any amount of Australian tax paid.
- Special tax arrangements apply to lump sum benefits paid to temporary residents departing Australia.
- The element taxed (for those under 60) and element untaxed are added to the taxpayer’s assessable income. The taxpayer receives a tax offset to ensure the effective tax rate does not exceed the maximum rate shown above.
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