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Took redundancy 12Mths ago, have now reached my preservation age, looking to a Lump Sum Super withdraw from my accumulation account. I understand the tax free & taxed component (which has no untaxed element).which for 2019 tax there is $205k low cap threshold and I have no super withdraws. Now I intend draw Tax free & Taxable components to wipe out all the $205k low cap limit threshold. Myself 57 & wife 52yr are not now working, are self-supporting not claiming any government centre link payment, living from savings, and only income is from interest, dividends and imputation credit, both of us taxable income just over the $18,200 tax free margin bracket.
ATO tax site, to me is not quite sure, or completly clear on my reading so questing to confirm advise on re the Lump Sum super withdrawal tax implication as discussed above.
Yeah thanks mate, have read many time's, yet still not quite 100%,and still scratching with issue below ?
Income for surcharge purposes includes:
If you are between your preservation age and 59 years old, you subtract from the total (above) any taxed element of a super lump sum (other than a death benefit) which you received that does not exceed your low-rate cap.
Your family income for surcharge purposes is the combination of your income and that of your spouse, using the above mentioned criteria.
So to me, the actual withdrawn Super lump taxable amount up to the low cap rate, while is shown in taxable income, but for calculations of rebate purpose, is taken back out (subtracted). So in essence the withdrawn lump sum taxable component from the "low cap rate" will not be detrimental to the Private hospital cover rebate.
I believe or at least think I understand rest of my questions re below:
Hope if you will confirm my my interpertation