The Government is announcing the provisional tax exemption thresholds to apply for pensioners in respect of the 1998-99 income year.
Each year new levels of provisional tax exemption thresholds are set for single-rate, partnered-rate and partnered-illness-separated-rate pensioners. Generally, the thresholds for a year of income are the cut-out thresholds for the pensioner rebate (ie the level of taxable income at which the rebate reduces to nil) for the previous year.
Pensioners will not be liable for 1998-99 provisional tax where:
- the 1997-98 taxable income of a single pensioner is less than $21,780;
- the combined taxable income for 1997-98 is less than $34,096 for a pensioner couple receiving the partnered-rate pension; and
- the combined taxable income for 1997-98 less than $41,922 for a pensioner couple receiving the separated rate pension (where the pensioners live apart as a result of illness or infirmity).
Pensioners who qualify for a full or partial pensioner rebate in 1997-98 will therefore be exempt from 1998-99 provisional tax.
For the purpose of determining whether a pensioner is eligible for a provisional tax exemption, bonuses received from friendly societies or insurance companies are excluded from taxable income.
CANBERRA
3 April 1998
Contact:
Penny Farnsworth,
Assistant Treasurers Office
Telephone: (02) 6277 7360
Mobile: (0419) 482 497
Mark Sheaves, ATO
Telephone: (02) 6216 1465