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Key tax and superannuation thresholds

Seniors and pensioners tax offset (SAPTO)

Section: 3.3

Seniors and Pensioners Tax Offset (SAPTO) - 2016/17

On 1 July 2012, the pensioner tax offset merged with the SATO, to be known as SAPTO.

Family situation Maximum tax offset per person Shade-out income threshold Cut-out income threshold
Single $2,230 $32,279 $50,119
Couple (each) $1,602 (each) $28,974 (each) $41,790 (each)
Couple separated because of illness (each) $2,040 (each) $31,279 (each) $47,599 (each)

Notes:

  • Other eligibility criteria:
    • age pension age, or service pension age, or older;
    • eligible to receive an age or service pension, even if no pension actually paid; and
    • not in prison for the whole income year.
  • For a whole-of-year couple, offset eligibility of each partner is determined by their combined income level, ie less than $83,580 or less than $95,198 if illness-separated, whereas offset entitlement is calculated on the basis of individual income.
  • Offset reduces by 12.5 cents for each dollar of income in excess of the shade-out threshold.
  • Partnered senior Australians can transfer any unused portion of their tax offset to their partner. Please refer to the senior Australians and pensioner tax offset calculator on the ATO website (partner must be eligible for senior Australians or pensioner tax offset)
  • Medicare levy does not apply for taxable income below the shade-out threshold.
  • "Income" for SAPTO purposes includes taxable income, reportable super contributions, net investment losses and adjusted fringe benefits.

Last modified: Tuesday, May 2, 2017