Low rate cap amount
The low rate cap amount is the limit set on the amount of taxable components (taxed and untaxed elements) of a super lump sum that can receive a lower (or nil) rate of tax. It applies to members that have reached their preservation age but are below 60 years.
It is a lifetime cap which is reduced by any amount previously applied to the low rate threshold.
Income year | Amount of cap |
|---|---|
2024–25 | $245,000 |
2023–24 | $235,000 |
2022–23 | $230,000 |
2021–22 | $225,000 |
2020–21 | $215,000 |
2019–20 | $210,000 |
2018–19 | $205,000 |
2017–18 | $200,000 |
2016–17 | $195,000 |
2015–16 | $195,000 |
2014–15 | $185,000 |
2013–14 | $180,000 |
2012–13 | $175,000 |
2011–12 | $165,000 |
2010–11 | $160,000 |
2009–10 | $150,000 |
2008–09 | $145,000 |
2007–08 | $140,000 |
The low rate cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down). The new indexed amount is generally available each February.
Untaxed plan cap amount
The untaxed plan cap amount:
- limits the concessional tax treatment of benefits that have not been subject to contributions tax in a super fund
- applies to each super plan from which a person receives super lump sum member benefits
- is used to calculate the excess untaxed roll-over amount.
Income year | Amount of cap |
|---|---|
2024–25 | $1,780,000 |
2023–24 | $1,705,000 |
2022–23 | $1,650,000 |
2021–22 | $1,615,000 |
2020–21 | $1,565,000 |
2019–20 | $1,515,000 |
2018–19 | $1,480,000 |
2017–18 | $1,445,000 |
2016–17 | $1,415,000 |
2015–16 | $1,395,000 |
2014–15 | $1,355,000 |
2013–14 | $1,315,000 |
2012–13 | $1,255,000 |
2011–12 | $1,205,000 |
2010–11 | $1,155,000 |
2009–10 | $1,100,000 |
2008–09 | $1,045,000 |
2007–08 | $1,000,000 |
The untaxed plan cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down). The new indexed amount is generally available each February.
Minimum annual payments for super income streams
Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum amounts to be paid in a financial year.
A minimum amount must be paid each year for pensions or annuities you start on or after 1 July 2007.
There is no maximum amount which must be paid unless it is a transition to retirement pension. A maximum amount of 10% of your account balance applies for transition to retirement pensions which aren't in retirement phase.
The minimum payment amounts have been halved for certain pensions and annuities for the 2008–09, 2009–10 and 2010–11 years and reduced by 25% for the 2011–12 and 2012–13 years. The minimum payment amount returned to normal in 2013–14. The reductions in these years apply only to account-based pensions and annuities (allocated pensions and annuities and market-linked pensions and annuities).
Temporarily reducing superannuation minimum payment amounts
To assist retirees, the government educed the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% for the 2019–20, 2020–21, 2021–22 and 2022–23 financial years. This reduction has not been extended for the 2023–24 income year and onwards.
Superannuation and annuity providers calculate the minimum annual payment required as at 1 July each year, based on the account balance of the member or annuitant. The 50% reduction will apply to this calculated minimum annual payment.
Note: Pension payments for 2019–20 year above the reduced minimum withdrawal rate, taken before 25 March 2020, can't be re-categorised as a lump sum or commutation, even if a valid minute or election from the member was in place before the government announced reduction.
Example: annual minimum pension payment
Robert is 67 years old. At 1 July 2019, Robert’s account based pension balance was $480,000. Robert’s minimum annual payment was calculated at 5% (the percentage applicable to his age) of his pension balance, which is $24,000. Following the law change, Robert’s required annual minimum pension payment for 2019–20 is $12,000.
If Robert has already withdrawn more than $12,000 for 2019–20, he isn't able to put the amount above $12,000 back into his superannuation account unless he’s eligible to make superannuation contributions and subject to any other rules or limits such as contribution caps.
End of exampleSuperannuation pensions and annuities that have already commenced
For pensions and annuities that commence part-way through a financial year, the temporary 50% reduction applies to the minimum annual payment that is calculated proportionally on the account balance on commencement day.
Example: temporary reduction in minimum drawdown amounts
Thomas commences an account-based pension on 1 January 2020 at age 66. His pension account balance on the commencement day was $250,000. Under current minimum drawdown requirements, his minimum annual payment amount would be $12,500 (5% of $250,000). As the pension commenced on 1 January 2020, the required minimum amount is calculated proportionately from the commencement day to the end of the financial year:
$12,500 (minimum annual payment amount) × 182 (days remaining) ÷ 366 (2020 is a leap year) = $6,215.
Following the temporary reduction in minimum drawdown requirements, Thomas is only required to drawdown 2.5% of his account balance, which is $3,107 ($3,110 rounded up to the nearest 10 whole dollars). If Thomas has already withdrawn over $3,110 for 2019–20, he can't put the amount above $3,110 back into his superannuation account unless he’s eligible to make superannuation contributions and subject to any other rules or limits such as contribution caps.
End of exampleFor more information on making contributions, see:
Age | 2008–09 to 2010–11 income years (inclusive) | 2011–12 to 2012–13 income years (inclusive) | 2013–14 to 2018–19 income years (inclusive) | 2019–20 to 2022–23 income years (inclusive) | 2023–2024 onwards |
|---|---|---|---|---|---|
Under 65 | 2.0% | 3.0% | 4.0% | 2.0% | 4.0% |
65–74 | 2.5% | 3.75% | 5.0% | 2.5% | 5.0% |
75–79 | 3.0% | 4.5% | 6.0% | 3.0% | 6.0% |
80–84 | 3.5% | 5.25% | 7.0% | 3.5% | 7.0% |
85–89 | 4.5% | 6.75% | 9.0% | 4.5% | 9.0% |
90–94 | 5.5% | 8.25% | 11.0% | 5.5% | 11.0% |
95 or more | 7.0% | 10.5% | 14.0% | 7.0% | 14.0% |
Note: These withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), refer to the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.
Preservation age
Generally, you must reach preservation age before you can access your super. Use the following table to work out your preservation age.
Date of birth | Preservation age |
|---|---|
Before 1 July 1960 | 55 |
1 July 1960 – 30 June 1961 | 56 |
1 July 1961 – 30 June 1962 | 57 |
1 July 1962 – 30 June 1963 | 58 |
1 July 1963 – 30 June 1964 | 59 |
From 1 July 1964 | 60 |
Super lump sum tax table
Income component derived in the income year | Age when payment is received | Amount subject to tax | Maximum rate of tax (excluding Medicare levy) |
|---|---|---|---|
Member benefit – taxable component – taxed element | Under preservation age | Whole amount | 20% |
Member benefit – taxable component – taxed element | At or above preservation age and under 60 years | Up to the low rate cap amount | Nil |
Member benefit – taxable component – taxed element | At or above preservation age and under 60 years | Above the low rate cap amount | 15% |
Member benefit – taxable component – taxed element | 60 years or more | Nil – amount is non-assessable, non-exempt income | n/a |
Member benefit – taxable component – untaxed element | Under preservation age | Up to untaxed plan cap amount | 30% |
Member benefit – taxable component – untaxed element | Under preservation age | Above untaxed plan cap amount | 45% |
Member benefit – taxable component – untaxed element | At or above preservation age and under 60 years | Up to the low rate cap amount | 15% |
Member benefit – taxable component – untaxed element | At or above preservation age and under 60 years | Above the low rate cap amount and up to the untaxed plan cap amount | 30% |
Member benefit – taxable component – untaxed element | At or above preservation age and under 60 years | Above the untaxed plan cap amount | 45% |
Member benefit – taxable component – untaxed element | 60 years or more | Up to the untaxed plan cap amount | 15% |
Member benefit – taxable component – untaxed element | 60 years or more | Above the untaxed plan cap amount | 45% |
Death benefit lump sum benefit paid to non-dependants – taxable component – taxed element | Any | Whole amount | 15% |
Death benefit lump sum benefit paid to non-dependants – taxable component – untaxed element | Any | Whole amount | 30% |
Death benefit lump sum benefit paid to dependants – taxable component – taxed and untaxed elements | Any | None | Nil |
Rollover super benefits – taxable component – taxed element | Any | Nil – amount is non-assessable, non-exempt income | n/a |
Rollover super benefits – taxable component – untaxed element | Any | Up to the untaxed plan cap amount is non-assessable, non-exempt income | n/a |
Rollover super benefits – taxable component – untaxed element | Any | Above the untaxed plan cap amount | 45% |
Super lump sum benefits less than $200 | Any | None | Nil |
Super lump sum benefit (terminally ill recipient) | Any | None | Nil |
Note:
- A temporary budget repair levy of 2% applies for the 2014–15, 2015–16 and 2016–17 income years to individuals with a taxable income of more than $180,000 per year. The levy is payable at a rate of 2% of each dollar of a taxpayer’s taxable income over $180,000. This will cease to apply from 1 July 2017.
- The Medicare levy rate is 2% from 1 July 2014 for the 2014–15 income year and later income years, it is applied in addition to the maximum rate of tax for each income component.
- The Medicare levy rate is 1.5% up to and including 30 June 2014 and is applied in addition to the maximum rate of tax for each income component.
- In the 2011–12 income year the flood levy may apply where an individual's taxable income exceeds $50,000. We have published information to help you work out if the flood levy applies to you.
For more information on cap amounts, see:
Departing Australia superannuation payment
This table covers Departing Australia superannuation payment (DASP)External Link tax rates for lump sums and rollovers.
Rollovers
If we hold super money for a former temporary resident as temporary resident unclaimed super money, they have the option of rolling the money over to their super fund if they have subsequently returned to Australia as a permanent resident. This is the only time a rollover of DASP is an option. The rollover is still a DASP and will be taxed according to this table.
Payment component | DASP ordinary tax rate | DASP Working holiday makers (WHM) tax rate |
|---|---|---|
Tax free component | Nil | Nil |
Taxable component – taxed element Applies to taxed elements whether taken as DASP lump sum or rollover. | 35% | 65% |
Taxable component – untaxed element Applies to DASP lump sums and also to roll-over amounts up to the untaxed roll-over plan cap amount. Any part of a rollover that exceeds the untaxed roll-over plan cap amount is subject to tax under the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 (47%) rather than at DASP tax rates. | 45% | 65% |
The temporary budget repair levy applied in the 2014–15, 2015–16 and 2016–17 income years. For those years, the DASP tax rates were:
- tax free component – NIL
- taxable component taxed element – 38%
- taxable component untaxed element – 47%
- Any part of a rollover that exceeded the untaxed roll-over plan cap amount was subject to tax under the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 (49%) rather than at DASP tax rates.