Tax File Number & Tax Withholding Rates
You have the choice of whether or not you quote your tax file number.
If you decide not to quote your number, then tax will be withheld from your benefit at the highest personal tax rate plus Medicare levy - currently 47%. Any release in total or part of a member's balance under financial hardship claim attracts a withholding rate of 47% in accordance with the ATO ruling, even if you have supplied a TFN.
What Tax rate is Applied?
The Tax rate applied is dependant on a number of factors:
a) the type of payment being made;
b) if you have supplied a TFN; and
c) if you are under or over the preservation age.
Below is the breakdown of Tax withholding rates based on payment type and preservation age.
Please Note: If a Tax file number is not stored on our system for you you will be taxed at the 47% rate.