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 2018/2019 year, and the 2017/2018 year (and earlier financial years). Before 1 July 2012, the SAPTO was called the Senior Australians Tax Offset (SATO). Latest article update was 2 July 2018.
If you are aged 60 or over, your superannuation benefit is not included as part of your assessable income for income tax, unless you’re a member of one of the older public sector super funds (untaxed source). If you super benefit is from an ‘untaxed source’ some tax is payable on the taxable component of the benefit.
The superannuation rules delivering tax-free super for over-60s are not the only tax benefits that you can take advantage of in retirement. If you have reached your Age Pension age (currently 65.5 years or over), you may also be eligible for the Seniors & Pensioners Tax Offset (SAPTO), which effectively gives you access to a higher tax-free threshold, but is not available if your income exceeds a certain level.