Merging of Pensioner Tax Offset and Senior Australians Tax Offset to new Seniors and Pensioners Tax Offset (SAPTO)

Don’t you just love another acronym to learn!

The seniors and pensioners tax offset (SAPTO) replaced the senior Australians tax offset (SATO) and the pensioner tax offset from 1 July 2012. This means older Australians who were previously eligible for either SATO or the pensioner tax offset may now be eligible for the SAPTO.

The rebate amount and thresholds are illustrated below:

Seniors and pensioners tax offset (SAPTO)
Family status Maximum tax offset Shade-out threshold Cut-out threshold
Single $2,230 $32,279 $50,119
Couple (each)33 $1,602 $28,974 $41,790
Couple (separated due to illness)33 $2,040 $31,279 $47,599
  1. The shade-out threshold is the maximum rebate income at which individuals will be entitled to the maximum tax offset. The tax offset reduces by 12.5 cents for each dollar of rebate income in excess of the shade-out threshold.
  2. The cut-out threshold is the level of rebate income at which the offset reduces to nil. At or above this level of rebate income, there is no entitlement to the tax offset.
  3. Any unused portion of the tax offset may be transferable to the partner under TR 93/31.

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

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Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

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  1. Thanks for this post!!!!!!!


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