28 Sep 2016 – Changes to tax rates for pension payments

SCOA has received the following information from the Commonwealth Superannuation Corporation:

The Australian Taxation Office (ATO) has released the new tax rates for the 2016/17 income year which will apply from 1 October 2016.

The ATO has advised that the tables do not include any catch-up component for the portion of the year which has already passed, and that individuals affected will receive the full benefit of the tax changes upon assessment of their income tax return for the 2016-17 income year.

According to the ATO, the new rates will affect approximately 30,000 CSS/PSS pensioners with the changes resulting in a reduction in fortnightly tax of between $2 to $14.  The majority of pensioners will have their fortnightly tax changed by $2.

Pensioners who think they might be affected, or want to obtain more information on how this could impact their tax payable for the 2016-17 financial year, should speak to a taxation advisor or financial planner.  Alternatively, they could contact the ATO on 13 28 61 if they have any questions or require assistance.

Canberra, 28 September 2016