How are age based limits applied to employee PAYG deductions?

Employees receiving an ETP that have reached the preservation age would normally be taxed at the lower rate (currently 15% + medicare).

These payments have been specifically mentioned in the attached ARITA circular and are therefore now taxed at the mid-rate + medicare in accordance with the direction.

Accordingly, the software no longer applies the reduced tax calculation for employees that qualify for the age based limit.

*Preservation age is the age at which you can retire and access your super. If you were born before 1 July 1960, your preservation age is 55. If you were born after 30 June 1960, your preservation age will be between 55 and 60.