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I work full time but am accessing my superannuation through an income stream , I received my payment summary from my fund and they have only withheld 10% for tax , I now have a large tax debt , should they be withholding more
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ATO Certified

TaxTime Support

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Hi @Cookie60

 

Welcome to our Community.

 

The questions asked by @macfanboy are relevant because how much tax your fund needs to withhold from your super income stream depends on a number of factors including:

  • Your age: Are you less than preservation age, between preservation age and 59 or 60 and more?
  • The components of the payment: Does it contain a tax-free component, taxable component - taxed element and/or taxable component - untaxed element?
  • The type of income stream: Is it a capped defined benefit income stream or a death benefit income stream or neither?
  • The information provided in the TFN declaration: Are you claiming the tax-free threshold?

 

You can read about how tax applies to your super on our website.

 

You have mentioned that you are working full time. You are generally only able to claim the tax-free threshold from one payer. You may not have enough tax withheld if you have mistakenly claimed the tax-free threshold with both your employer and the super fund.

 

It may be a good idea to contact your fund to find out how you answered that question on the TFN declaration. Refer to the tax file number declaration page on our website for more information.

 

Depending on the components of the payment and your age, you may be entitled to a tax offset of 15% of the taxable component - taxed element or 10% of the taxable component - untaxed element.

 

We don't automatically give you this offset. You need to claim it when you lodge your return. If you don't, it can appear as though you haven't had enough tax taken out of your payments.

 

Perhaps your fund has made a mistake. Perhaps you have declared a component of the super income stream that doesn't need to be declared due to your age or because it is tax free.

 

As you can see, there are a few possibilities. Depending on the reason, it may be too late to correct it for the 2019 year but plenty of time to fix it for 2020.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2

Taxicorn

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If you are accessing your super through an income stream and still working then I guess that you are between Preservation Age and 60?

 

If so then:

Taxed Element = Assessable income taxed at 0% up to $205,000 and Limited to 15% above $205,000

Untaxed Element = Tax limited to 15% up to $205,000 and limited to 30% from $205,001 to $1.445m

 

Excluding Medicare.

 

Best answer

ATO Certified

TaxTime Support

Replies 0

Hi @Cookie60

 

Welcome to our Community.

 

The questions asked by @macfanboy are relevant because how much tax your fund needs to withhold from your super income stream depends on a number of factors including:

  • Your age: Are you less than preservation age, between preservation age and 59 or 60 and more?
  • The components of the payment: Does it contain a tax-free component, taxable component - taxed element and/or taxable component - untaxed element?
  • The type of income stream: Is it a capped defined benefit income stream or a death benefit income stream or neither?
  • The information provided in the TFN declaration: Are you claiming the tax-free threshold?

 

You can read about how tax applies to your super on our website.

 

You have mentioned that you are working full time. You are generally only able to claim the tax-free threshold from one payer. You may not have enough tax withheld if you have mistakenly claimed the tax-free threshold with both your employer and the super fund.

 

It may be a good idea to contact your fund to find out how you answered that question on the TFN declaration. Refer to the tax file number declaration page on our website for more information.

 

Depending on the components of the payment and your age, you may be entitled to a tax offset of 15% of the taxable component - taxed element or 10% of the taxable component - untaxed element.

 

We don't automatically give you this offset. You need to claim it when you lodge your return. If you don't, it can appear as though you haven't had enough tax taken out of your payments.

 

Perhaps your fund has made a mistake. Perhaps you have declared a component of the super income stream that doesn't need to be declared due to your age or because it is tax free.

 

As you can see, there are a few possibilities. Depending on the reason, it may be too late to correct it for the 2019 year but plenty of time to fix it for 2020.

 

Hope this helps.

 

Thanks,

 

ChrisR

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