Seniors and pensioners tax offsets 2015-16-17
From 1 July 2012, the pensioner tax offset merged with the SATO, henceforth to be referred to as SAPTO. Medicare Levy exemptions carry across to the new rebate as well.
SAPTO Rebates and Income Test Table
for 2012-13 , 2013-14, 2014-15, 2015-16, 2016-17
|Family Status (pensioner)||Maximum Offset per person||Offset value is reduced by 12.5 cents per dollar of Rebate Income** over the following thresholds:|
|Single||$2,230||$32,279 (cuts out at income of $50,119)|
|Married/defacto (each)||$1,602 each||$28,974 each (cuts out at combined income of $83,580)||Each person is assessed on half their combined Rebate Income, and unused offsets are transferable|
|Couple separated due to illness (each)||$2,040 each||$31,279 each (cuts out at combined income of $95,198)|
** “Rebate income” is a combination of taxable income, adjusted fringe benefits, reportable super contributions and net investment loss. Rebate income for 2017 can be calculated here.
Unused rebate – transferring to your spouse
In circumstances when the rebate is not fully absorbed by tax payable, portions of the remainder may, subject to conditions, be transferable to a spouse. Calculations are determined according to income, whether the couple are living together, or living apart due to illness, and the residence status of the transferee spouse.
Example calculations have been provided here: Transferring the seniors and pensioners tax offset
Eligibility for SAPTO
The SAPTO eligibility tests include:
- Government pension test
The age test applicable depends on whether the taxpayer is a war veteran or not. The relevant age tables are produced below.
Residency requires generally more than 10 years in Australia, or exemption (as for refugees) and not having been in prison for the full year.
Government pensions test requires eligibility (subject to an income test) for the Age and Service pensions.
- The ATO eligibility questionnaire for 2016-17 is here.
- The ATO eligibility questionnaire for 2015-16 is here.
- The ATO eligibility questionnaire for 2014-15 is here.
If SATO claimants are also eligible for the Pensioner Tax Offset the SATO takes precedent because it’s higher.
The calculations and eligibility requirements for SATO can be complex, and it is not necessary to calculate it in detail to be able to make a claim in your tax return. It is sufficient to supply the relevant information, and have the Tax Office work it out.
SAPTO Age Test Tables
The taxpayer is eligible if attained “pension age” at 30 June.
Eligibility for an Australian Government age pension from Centrelink requires an age of 65 years or older on 30 June, or subject to Veterans Affairs requirements, aged 60.
From 1 July 2017 the Centrelink pension age is being progressively increased to age 67.
|Date of Birth||Required Age at 30 June|
|On or before 30 June 1952||65 years|
|1 July 1952 to 31 December 1953||65 years 6 months|
|1 January 1954 to 30 June 1955||66 years|
|1 July 1955 to 31 December 1956||66 years 6 months|
|On or after 1 January 1957||67 years|
The Veteran Pension Qualifying Age will increase by 6-monthly increments every 2 years until it reaches 67 on 1 July 2023.
SATO Income Test Tables (2011 and 2012)
|Family Status (pensioner)||Maximum Offset per person||Income threshold: Offset reduces by 12.5 cents per dollar over:|
|Married/defacto (each)||$1,602 each||$26,680 each||Each person is assessed on half their combined income, and unused offsets are transferable|
|Couple separated due to illness (each)||$2,040 each||$29,600 each|
“Income” for these purposes is a defined term: “Rebate income”, which is a combination of taxable income, adjusted fringe benefits, reportable super contributions and net investment loss. The ATO has a worksheet (2012) for calculating Rebate income for the purposes of the Senior Australian Tax Offset.
This page was last modified on 2017-10-20