Illustration: A client over 80 years old has withdrawn superannuation. Selected the Tax Offset Code as 'Single,' but the tax calculation still shows a 30% tax on the super amount (e.g., $8,080.34), which seems incorrect because clients over 80 generally do not pay tax on super withdrawal
Solution Steps:
1. Verify Client's Birthdate: Double-check the client’s date of birth entered in the system. An incorrect year entry may cause the software to calculate tax incorrectly.
2. If the question concerns the Seniors and Pensioners Tax Offset (SAPTO): The tax payable may be $0 if the taxable income exceeds the SAPTO threshold (currently $52,759).
3. If the question involves a tax offset for Superannuation Income Stream:
- The tax offset should be entered directly in the income stream worksheet.
- This correctly reduces the calculated tax payable.
For more information, visit the ATO page on superannuation income streams and tax offsets: ATO - Superannuation Income Stream Tax Offsets
If issues persist: Provide additional details such as expected tax on taxable income or any tax-exempt amounts to allow more precise assistance.