Seniors and Pensioners Tax Offset (SAPTO)

The Seniors and Pensioners Tax Offset (SAPTO) (formerly known as the Senior Australians Tax Offset (SATO)) is a tax offset that’s available for retirees who are of Age Pension age or older, or of Service Pension age.

Set out below are all SuperGuide articles explaining Seniors and Pensioners Tax Offset (SAPTO).

What are the super and retirement rules for over-65s?

Q: My wife (age 63) and myself (age 65) were told by a financial organisation that at 65 or over I could put money into super, pay 15% tax on the way in, and then draw it out when I wished and pay no tax. In fact I have been told to pay myself $30,000 or less and source the rest of my income through … [Read more...]

Super for beginners, part 25: Is super worthwhile if I’m earning less than $37,000?

Q: Great site! Lots of excellent information. I now work part-time, earning just under $37,000, and wondered whether I should bother with super. I am pretty sure I will get the Age Pension, and based on my income I reckon I would be better to save outside super and pay less tax, rather than have my … [Read more...]

Super for beginners, part 16: Tax-free twice when you retire

Q: I am confused. When I retire and I am over 60 I receive tax-free super benefits. Someone has told me that I also get other tax-free stuff. Can you tell me what that is?In terms of retirement and superannuation, when you reach 60 and start a retirement income stream (super pension) you get two … [Read more...]

Australian income tax rates for 2016/2017 and 2015/2016 years

The Australian income tax rates applicable for the 2016/2017 financial year, and the 2015/2016 and 2014/2015 financial years are set out in the tax tables below (lists the tax brackets and individual tax rates). We have also included the tax brackets and individual tax rates for the 2013/2014, … [Read more...]

SAPTO: Cutting seniors tax via super contributions not possible

Q: I am attempting to work out when the 32.5% tax rate applies to both my wife and my own incomes for the 2015/2016 year. We are both 67 and operate a SMSF to which we can make concessional contributions, and I would like to reduce personal income to the point below which 32.5% tax rate … [Read more...]

Medicare Levy increase helps pay for NDIS

The National Disability Insurance Scheme (NDIS) became a reality when the former ALP federal government managed to secure a deal with state governments that results in a guaranteed financial contribution sourced directly from taxpayers (increases in Medicare levy), and promised contributions from … [Read more...]

No tax in retirement because you SAPTO (updated rates)

This article is updated annually with new rates, or updated periodically to highlight changes (if any) to the Seniors & Pensioners Tax Offset (SAPTO) rules. This article includes SAPTO rates for the 2015/2016, 2014/2015, 2013/2014, and 2012/2013 years, and SATO rates for the 2011/2012, … [Read more...]

Mature Age Worker Tax Offset gone from July 2014

The Mature Age Worker Tax Offset will be abolished from 1 July 2014, saving the federal government $700 million over 4 years. The MAWTO was first introduced in 2004, to encourage older workers to stay in the workforce.Ah well, the government is seeking Australians to work longer but at the same … [Read more...]

A case study: I’m 53. Is it too late to save for my retirement? (updated figures)

Note: Betty has made no plans for retirement, but if she starts contributing $100 a week, until she retires, then she can expect her lifestyle to be better than her current lifestyle. If she contributes $50 a week, then she can expect to receive at least 80% of her pre-retirement income. This … [Read more...]

Guest contributor: Turning 65 – Do you still need a SMSF?

This article is written by Bruce Sutherland, a regular SuperGuide reader, a self-funded retiree and now ex-SMSF trustee. Bruce is a former CEO, and a former strategy consultant, and he holds a degree in Economics. Bruce has closed his SMSF because he believes that a SMSF is no longer tax-effective … [Read more...]

Tax-free retirement: Why bother with super, such as an SMSF?

Q: Rather than putting our money in super, should we just go for a lump sum and invest in term deposit and direct shares in our own name? For example, if a couple who are senior age can receive income of $51,630 tax-free outside of an SMSF, why bother with all the requirements and costs of operating … [Read more...]

Should we transfer our super to a bank account to avoid fees?

Q: My husband and I are retired. We receive the bare pension and health card and we have our super in a Family Super fund account in a bank. We are both over 65 and have a financial adviser who does our super at the end of the year. He charges a fee then sends it to an auditor, and he charges a fee. … [Read more...]