When does SAPTO start for a 64 year old?

Hi guys,

I read that for a married retiree once they pass age 65 the tax-free threshold rises to $28,974 per year.
I am retired and turning 65 next April, so does that mean the $28,974 threshold applies for the whole of the current financial year? or pro-rata for that part of the financial year after my 65th birthday? or does it not start until next financial year?
Sorry if this question is dumb, but I've been Googling it for half an hour and haven't found the answer.

Thanks,
Dave

 

The Senior and Pensioner Tax offset (SAPTO) reduces the amount of tax payable. To be eligible for the tax offset, a taxpayer must meet certain conditions

- Be eligible for the age pension


The SAPTO is not pro-rata during the year, it is based on your taxable income over the year. In the financial year that you turn 65, then SAPTO would apply to the taxable income financial year.


If you have any question, i can be contacted on email below


[email protected]

 

Thanks Christian,

That answers my question (ie SAPTO will apply for the whole of this financial year).
But it also brings up another question re
must be "eligible for the age pension".
I meet the eligibilty criterion for the age pension, except that I won't actually receive any pension because of the Assets Test. So I'm not clear whether I'm eligible for SAPTO

 

Hi Davewa,

SAPTO applies to individuals who are over the aged 65, even if you do not recieve an age pension.

SAPTO was designed so people who are over the age of 65, have an incentive continue to work.

Kind Regards

[email protected]

 

Hi Christian,

Thanks for answering my questions. (I must have spent 2 or 3 hours trawling the net without finding the answer to my 2 questions - and I would think they were reasonably common questions)

Cheers,
Dave