Super Tax Offset Calculator

Select the Super Payment

This super tax offset calculator estimates an income-stream offset or a supported lump-sum offset from your client’s payment components. Select the income year and use the fund’s payment summary or annual payment records.

Keep the tax-free component separate from the taxable component’s taxed and untaxed elements. Tax withheld is a separate credit. An offset reduces income tax and does not increase the amount the fund pays.

For an income stream, combine payments with the same age and benefit treatment. If treatment changes during the year, calculate each eligible period separately. Enter the applicable reduced defined benefit cap when required.

Income-Stream Offset Calculation

For recipients aged 60 or older, the untaxed element generally attracts a 10% offset. Under 60, an eligible disability income stream attracts 15% on the taxed element. An ordinary member income stream under 60 has no offset in the offered years.

A dependant receiving a death-benefit income stream receives a 15% taxed-element offset while both people are under 60. If either is 60 or older, the untaxed element attracts 10%. The taxed element then has no offset.

For capped defined benefit income, the calculator reduces the 10% offset by 10% of annual concessionally treated payments above the applicable cap. The reduction stops at the untaxed-element offset. Include the relevant tax-free and taxed components in that annual total.

The general cap is $125,000 for 2025-26 and $131,250 for 2026-27. A part-year entitlement or other defined benefit payments can reduce it. Enter your separately established applicable cap. The super benefit tax provisions govern these offsets and cap adjustments.

Lump-Sum Offset Calculation

The lump-sum setting covers one ordinary member payment to a full-year adult Australian resident. Under 60, enter a taxed element or an untaxed element. Mixed taxable elements under 60 and untaxed amounts above the remaining plan cap need a separate return calculation.

The calculator compares basic resident income tax with and without the taxable lump sum. It subtracts the permitted component tax from that difference, with an offset floor of zero. Medicare and other offsets are excluded.

For a taxed element under 60, permitted income tax is 20%. An untaxed element within the remaining plan cap uses 30% under 60 or 15% from 60. A taxed element from 60 is tax-free and creates no offset.

Prior untaxed benefits reduce the available plan cap. The full cap is $1,865,000 for 2025-26 or $1,935,000 for 2026-27. These figures and payment classifications appear in the ATO’s super payment schedules. The calculation uses the selected year’s resident income tax rates.

Preservation age is 60 for anyone still under 60 in these income years. The calculator therefore has no historical preservation-age-to-60 low-rate band. Death-benefit lump sums, terminal-condition payments, foreign residents and special invalidity pension offsets require their own treatment.

Reconcile the Return Workpaper

In the fictional default pension case, a recipient over 60 has a $92,000 taxed element, $24,000 untaxed element and $18,000 tax-free component. Total capped defined benefit income is $134,000 against a $125,000 applicable cap.

The initial 10% untaxed-element offset is $2,400. The $9,000 cap excess reduces it by $900, leaving the displayed $1,500 offset. The taxed-element offset is $0 and the remaining offset basis is $15,000.

For a fictional lump-sum case, select Under 60 and Member benefit. Enter a $40,000 taxed element, no untaxed element and $80,000 of other taxable income. Basic tax rises by $12,000. Permitted tax is $8,000, leaving a $4,000 offset.

Reconcile the result with the payment summary and return calculation. The ATO calculates the lump-sum offset on assessment. Enter income-stream offsets at the appropriate return item. Neither figure is a separate super contribution or fund payment.

Offsets cannot be refunded beyond the tax they can reduce. Calculate Medicare, other offsets and withholding separately before determining the final assessment. Entered amounts stay on this page and are neither sent nor saved.