Provisional Tax Exemption for Pensioners

The Government is announcing the provisional tax exemption thresholds to apply for pensioners in respect of the 1999-2000 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 (i.e. the level of taxable income at which the rebate reduces to nil) for the previous year.

Pensioners will not be liable for 1999-2000 provisional tax where:

• the 1998-99 taxable income of a single pensioner does not exceed $22,313;
• the combined taxable income for 1998-99 does not exceed $34,980 for a pensioner couple receiving the partnered-rate pension; and
• the combined taxable income for 1998-99 does not exceed $42,988 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 1998-99 will therefore be exempt from 1999-2000 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
1 April 1999