How Will My Payment Be Taxed
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 you will be taxed at the 47% rate.
Below is a breakdown of tax withholding rates based on the claim type and your age.
* Tax free amount for 2023/2024 financial year is $11,985 for the initial year, and $5,994 for each full year of service with your Employer.
The table below outlines the tax free amounts based on your years of service with your Employer.
Age Pension Age
Preservation Age
Tax Free Limit on BERT Genuine Redundancy Claims
A genuine redundancy payment is tax-free up to a certain amount, based on the number of completed years of service with your Employer.
For the 2023/2024 financial year, the limit is:
$11,985 + ($5,994 for each full completed year of service*)
* Years of service is calculated from the first contribution into the Fund; or from the first contribution received after your last full claim
Please refer to the ATO website for information regarding tax free thresholds for genuine redundancy payments.
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.
Payment Summaries
BERT uses Single Touch Payroll (STP) to advise the ATO of payments made to you. From 1 February 2023, you will no longer receive Payment Summaries from us, or be able to download them from BOBB.