In order for Tax to calculate the correct Superannuation lump sum offset for each such payment the taxpayer receives during their lifetime, a record must be kept of the amounts of those payments that were concessionally treated for tax purposes under s159S. The Low Rate cap refers to taxpayers who were 55 years and under 60 years of age at the time of the payment.
Access to this dialog in the Return Properties is offered in the Superannuation lump sum payment schedule (pl) which is offered at item 8 in the individual return.
To check whether your client received a Superannuation lump sum in the previous year and an offset was received on some of all of the lump sum income, click the Update prev. used amounts button and Tax will review last year's Estimate and, accordingly, update these fields.
Low Rate Lifetime Cap
The Low Rate Superannuation lump sum threshold is a lifetime threshold which applies once only for each taxpayer for the purpose of determining the maximum rate of tax applicable to the taxed component of ALL Lump sums received by a taxpayer at the age of 55 years and under 60 years of age where the tax rate on the element was zero. The cap is indexed each year. The low rate threshold is now referred to as the 'Cap'.
For example, if the taxpayer aged 55 years and under 60 years of age receives a superannuation lump sum with a taxed component less than low rate threshold, then the balance is carried forward to be applied to the taxed component of any subsequent payment received.
AE and AE Series 6 & 8: The threshold is indexed annually by AWOTE and the current thresholds for all Superannuation lump sums, death benefits and income streams are contained in the Tax Rates > Parameter Tables which are accessible directly from the 2009 Calculator or from Tax and selecting the Maintenance > Tax Rates > Tax Calculator Tables.
AO: The threshold is indexed annually by AWOTE and the current thresholds for all Superannuation lump sums, death benefits and income streams are contained in the Tax.
For example, in the 2012-13 income year the untaxed plan cap amount is $1,255,000 which is indexed annually in accordance with AWOTE. The untaxed plan cap is the maximum amount of the untaxed element of the superannuation lump sum payments, which will be subject to concessional tax rates.
Each superannuation lump sum payment received from a superannuation fund that contains a taxable component with an untaxed element will count towards this cap. The cap includes amounts rolled over to another superannuation fund. There is a separate untaxed plan cap for each superannuation fund plan held by the taxpayer. Any part of the untaxed element which exceeds the untaxed plan cap will be taxed at the top marginal rate (plus Medicare Levy where applicable).
As taxpayers may have more than one Untaxed Plan, Tax has provided sufficient fields for 3 Untaxed Plans.