LUMP SUM BENEFITS


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The Medicare Levy has recently risen from 1.5% to 2.0%, effective 1 July 2014. 

Please note the government has announced changes that, if passed by parliament, will temporarily apply a 2% levy to the taxable income of individuals earning over $180,000 from 1 July 2014.

Income Component
Payment Date Age
Amount Subject to Tax
Tax Rate Including Medicare
Lump Sum - Taxable Component - Taxed Element
Under preservation age
Whole Amount
22%
At or above preservation age and under 60
To low cap amount
Nil
Above low cap amount
17%
Age 60 and above
Whole amount
Nil
Lump Sum - Taxable Component - Untaxed Element
Under preservation age
To untaxed plan cap
32%
Above untaxed plan cap
42%
At or above preservation age and under age 60
To low cap amount
17%
Above low cap amount up to untaxed plan cap
32%
Above untaxed plan cap
47%
Age 60 and above
To untaxed plan cap
17%
Above untaxed plan cap
47%


For more information please click here.  

 

Where:
Year
Low Cap Amount
Untaxed Plan Cap
2014/15
$185,000
$1.355m
2013/14
$180,000
$1.315m
2012/13
$175,000
$1.255m
2011/12
$165,000
$1.205m
2010/11
$160,000
$1.155m
2009/10
$150,000
$1.100m
2008/09
$145,000
$1.045m
2007/08
$140,000
$1.000m


There is no tax on superannuation lump sum benefits of less than $200.

Sourced from Australian Tax Office website : Key Superannuation Rates and Thresholds

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