|
Age |
Tax on taxable component 2010 |
Tax on taxable component 2011 |
|
Under preservation age* on the last day of the income year in which the payment is made. |
Up to $150,000 – taxed at a maximum rate of 30% plus Medicare levy. |
Up to $160,000 – taxed at a maximum rate of 30% plus Medicare levy. |
|
|
Amount over $150,000 – taxed at top marginal tax rate plus Medicare levy. |
Amount over $160,000 – taxed at top marginal tax rate plus Medicare levy. |
|
Preservation age* or over on the last day of the income year in which the payment is made. |
Up to $150,000 – taxed at a maximum rate of 15% plus Medicare levy |
Up to $160,000 – taxed at a maximum rate of 15% plus Medicare levy. |
|
|
Amount over $150,000 – taxed at top marginal tax rate plus Medicare levy. |
Amount over $160,000 – taxed at top marginal tax rate plus Medicare levy. |
*Preservation age is the age at which retirees can access their super benefits generally on retirement.
Born before 1 July 1960, you can access your super when you are 55. after 30 June 1960, your preservation age will be between 55 and 60. This is because the preservation age will gradually increase from 55 to 60 between 2015 and 2025.Preservation age is the age at which retirees can access their super benefits generally on retirement.
Born before 1 July 1960, you can access your super when you are 55. after 30 June 1960, your preservation age will be between 55 and 60. This is because the preservation age will gradually increase from 55 to 60 between 2015 and 2025.Preservation age is the age at which retirees can access their super benefits generally on retirement.
Born before 1 July 1960, you can access your super when you are 55. after 30 June 1960, your preservation age will be between 55 and 60. This is because the preservation age will gradually increase from 55 to 60 between 2015 and 2025.
Transitional ETP Cap Amounts up to 30 June 2012
Transitional arrangements apply if you were entitled, as at 9 May 2006, to a payment made on the termination of employment under:a written contract
- A written contract
- An Australian or foreign law (or an instrument under such a law), or
- A workplace agreement under the Workplace Relations Act 1996.
Employment termination payments made after 1 July 2007 (other than those made under the transitional arrangements) won't be able to be contributed or rolled over into super.
The taxable component of a transitional termination payment will be taxed at no more than 15% up to the lower cap amount and no more than 30% on the amount which exceeds the lower cap amount but does not exceed the upper cap amount. Amounts in excess of the upper cap amount will be taxed at the top marginal rate.
|
Income Year |
Lower Cap Amount |
Upper Cap Amount(not indexed) |
|
2008-2009 |
$145,000 |
$1 million |
|
2009-2010 |
$150,000 |
$1 million |
|
2010-2011 |
$160,000 |
$1 million |
Transitional arrangements in relation to termination payments will cease to apply on or after 1 July 2012.
Tax free Part of Genuine Redundancy Payments and Early Retirement Scheme Payments
This table shows the limit set for genuine redundancy and early retirement scheme payments. For earlier years, see Tax-free part of bona fide redundancy payments and approved early retirement scheme payments limits (below).
|
Income Year |
Base Limit |
For Each Completed Year of Service |
|
2008-2009 |
$7,350 |
$3,676 |
|
2009-2010 |
$7,732 |
$3,867 |
|
2010-2011 |
$8,126 |
$4,064 |
|
ETP tax table |
|
Income Component Derived in the Income Year |
Age at the End of the In come Year in Which the Payment is Received |
Component Subject to Tax |
Maximum Rate of Tax (Including Medicare) |
|
Life benefit ETP –Taxable component |
Under preservation age |
Up to lower cap amount |
31.5% |
|
|
At or above preservation age |
Up to lower cap amount |
16.5% |
|
|
All ages |
Amount above lower cap amount |
46.5% |
|
Transitional ETP - taxable component |
Under preservation age |
Up to upper cap amount |
31.5% |
|
|
At or above preservation age |
Up to lower cap amount |
16.5% |
|
|
Amount above lower cap amount up to upper cap amount |
31.5% |
|
|
All ages |
Amount above upper cap amount |
46.5% |
|
Death Benefit ETP paid to non-dependants - taxable component |
All ages |
Up to lower cap amount |
31.5% |
|
|
|
Amount above lower cap amount |
46.5% |
|
Death Benefit ETP paid to dependants - taxable component |
All ages |
Up to lower cap amount |
Nil |
|
|
|
Amount above lower cap amount |
46.5% |
|
|
Excess of above below limits |
Ordinary ETP |
| 2010 |
$7,732 + $3,867 x yrs of completed service) |
not assessable. |
|
2009 |
$7,350 + $3,676 x yrs of completed service) |
not assessable. |
|
2008 |
$7,020 + $3,511 x yrs of completed service) |
not assessable. |
|
2007 |
$6,783 + $3,392 x yrs of completed service) |
not assessable. |
|
2006 |
$6,491 + ($3,246 x yrs of completed service) |
not assessable. |
|
2005 |
$6,194 + ($3,097 x yrs of completed service) |
not assessable. |
|
2004 |
$5,882 + ($2,941 x yrs of completed service) |
not assessable. |
|
Non-qualifying |
|
Marginal |
|
Pre-July 1983 |
5% |
Marginal |
|
Post-June 1983 (taxed & untaxed) |
|
See table below |
|
Excessive |
|
47% |
|
Taxpayer Age & Amount |
Taxed Element - max % |
Untaxed - max % |
|
Under 55 - total amount |
20% |
30% |
|
55 and over: |
|
|
|
$0 to threshold - next table |
0% |
15% |
|
Over threshold - next table |
15% |
30% |
|
Low Rate Eligible Termination Threshold |
|
1984/85 $50,000 |
1993/94 $77,796 |
2002/03 $112,405 |
|
1985/86 $55,000 |
1994/95 $79,975 |
2003/04 $117,576 |
|
1986/87 $55,000 |
1995/96 $83,574 |
2004/05 $123,808 |
|
1987/88 $55,000 |
1996/97 $86 917 |
2005/06 $129,751 |
|
1988/89 $60,000 |
1997/98 $90,916 |
2006/07 $135,590 |
|
1989/90 $64,500 |
1998/99 $94,189 |
2007/08 $140,000 |
|
1990/91 $68,628 |
1999/00 $97,109 |
2008/09 $145,000 |
|
1991/92 $73,776 |
2000/01 $101,188 |
2009/10 $150,000 |
|
1992/93 $76,949 |
2001/02 $105,843 |
20010/11 $160,000 |
The RBL was abolished from 1 July 2007. Up to 30 June 2007, these tables can be used to determine the concessional tax rates limits of a reasonable benefit limit (RBL) for a particular financial year. The table includes both the pension and lump sum RBL.
|
Year |
Lump Sum RBL * |
Pension RBL |
|
1998/1999 |
$471,088 |
$942,175 |
|
1999/2000 |
$485,692 |
$971,382 |
|
2000/2001 |
$506,092 |
$1,012,181 |
|
2001/2002 |
$529,373 |
$1,058,742 |
|
2002/2003 |
$562,195 |
$1,124,384 |
|
2003/2004 |
$588,056 |
$1,176,106 |
|
2004/2005 |
$619,223 |
$1,238,440 |
|
2005/2006 |
$648,946 |
$1,297,886 |
|
2006/2007 |
$678,149 |
$1,356,291 |
* The Lump Sum RBL is reduced by 2.5% for each year that the taxpayer is under age 55 at the time of payment.
The information in the table below gives transitional RBL indexation factors and can be used to index a previous financial year's reasonable benefit limits to the current year in line with inflation.
|
Year |
Indexation Factor |
|
2006/2007 |
1.045 |
|
2005/2006 |
1.048 |
|
2004/2005 |
1.053 |
|
2003/2004 |
1.046 |
|
2002/2003 |
1.062 |
|
2001/2002 |
1.046 |
|
2000/2001 |
1.042 |
|
1999/2000 |
1.031 |
|
1998/1999 |
1.036 |
|
1997/1998 |
1.046 |
|
1996/1997 |
1.040 |
|
1995/1996 |
1.045 |
ATO - Changes to Super - Overview
ATO- Employment Termination Payments
ATO - Key Superannuation Rates and Thresholds
ATO - Reasonable Benefit Limits - Practical Tips for Tax Practitioners
ATO - Key Superannuation Rates and Thresholds
|
