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Tax on untaxed component of two defined benefit pensions

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Hi,  I receive two defined benefit pensions from PSS. It's probably obvious but I just would like confirmation that when the ATO calculates my tax they apply the 10% tax offset to the marginal tax on the combined total  taxable untaxed amount? The reason I ask is that the offset on one pension's amount is more than the marginal tax but reduces the payg tax to zero. The offset on the other pension's amount is less than the marginal tax because I don't claim the general exemption on that pension.   I am hoping at the end of the year the ato calculates a total 10% offset and applies it to the total marginal tax on the two combined taxable untaxed amounts. (I'm under the cap). Appreciate any advice. Thx

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Devotee

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Your fund will include details of the eligible offset amount on your payment summary or summaries. 

 

You will be entitled to the offset on the total untaxed amount unless the total of the pensions received (all components) is more than $100,000 per year.  If this is the case you will not receive the 10% offset on the amount above $100,000.  For example, if you receive $120k of pensions with $80K untaxed only $60k of the untaxed amount will be eligible for the offset.

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Most helpful response

Devotee

Replies 0

Your fund will include details of the eligible offset amount on your payment summary or summaries. 

 

You will be entitled to the offset on the total untaxed amount unless the total of the pensions received (all components) is more than $100,000 per year.  If this is the case you will not receive the 10% offset on the amount above $100,000.  For example, if you receive $120k of pensions with $80K untaxed only $60k of the untaxed amount will be eligible for the offset.