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abcairns66(I'm new)I'm new
18 June 2025

I am currently on a Defined Benefit Scheme pension. I intend to make a concessional contribution to a separate Super fund to reduce my Taxable Income. If my then tax oweing becomes say $4400, including Medicare Levy, what happens if my PAYG is $4000 and my Tax offset is $6000. (making a $10000 "paid" already). Does that mean I will be refunded the difference, ($5600) or after the $4000 PAYG is taking into account, does the offset just nullify at the extra $400?.

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119 views
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Glenn4802(Devotee)Devotee
18 June 2025

The offset relating to your pension is non-refundable. It can only be used to offset your tax liability. It can't be used to offset your Medicare levy.


A pension tax offset of $6,000, along with the applicable low income tax offset, gives you an effective tax-free threshold of around $51,500. Noting that the Medicare levy would still be payable on that amount.



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what happens to a Tax Offset if the tax payable is less than the offset amount. | ATO Community