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About this schedule

Amounts to be withheld from payments of a super income streams.

Published 16 June 2024

Using this schedule

This schedule applies to payments made from 1 July 2024.

This withholding schedule is made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by paragraph 12-80(a) of Schedule 1 to the TAA.

Use this schedule if you make a payment of a super income stream, including:

  • account-based super income streams – including death benefit income streams
  • capped defined benefit income streams – including death benefit income streams
  • transition to retirement income streams
  • temporary or permanent disability super income streams.

Super income streams

A super income stream is a series of regular payments from a superannuation provider when the payee has satisfied a condition of release. These regular payments can be paid weekly, fortnightly, monthly, quarterly or annually.

A super income stream may be:

  • an account-based super income stream
  • a capped defined benefit income stream which includes a
    • lifetime pension, regardless of when it started
    • lifetime annuity that existed prior to 1 July 2017
    • life expectancy pension or annuity that existed prior to 1 July 2017
    • market-linked pension or annuity, that existed prior to 1 July 2017
    • a reversionary death benefit income stream.

Note: A commutation of an income stream is not a super income stream payment. It is a super lump sum. Refer to Schedule 12 – Tax table for superannuation lump sums.

Defined benefit income cap

The general defined benefit income cap for the 2024–25 financial year is $118,750. The defined benefit income cap may be reduced depending on the payee's circumstances.

For more information, see:

Components of a super income stream

Before you can work out the withholding amount, you must calculate the components of the super income stream.

A super income stream may have 2 components:

  • taxable component, which can include either or both of an element
    • taxed in the fund (taxed element)
    • untaxed in the fund (untaxed element).
  • tax-free component.

 

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