Pension Tax Calculator — Super & Income Tax Estimator
This page provides simple tax and pension drawdown reference tools for retirement planning.
Bank Interest Tax and SAPTO Reference Table
| Bank Saving |
Bank Interest at % |
Tax Before Offset | SAPTO Offset | Actual Tax Payable | Tax Rate | Notes |
|---|---|---|---|---|---|---|
| 100,000 | 5,000 | 0 | 2,230 | 0 | 0 | Within tax-free threshold |
| 200,000 | 10,000 | 0 | 2,230 | 0 | 0 | Within tax-free threshold |
| 300,000 | 15,000 | 0 | 2,230 | 0 | 0 | Within tax-free threshold |
| 364,000 | 18,200 | 0 | 2,230 | 0 | 0 | Within tax-free threshold |
| 400,000 | 20,000 | 288 | 2,230 | 0 | 0 | Full SAPTO offset |
| 500,000 | 25,000 | 1,088 | 2,230 | 0 | 0 | Full SAPTO offset |
| 600,000 | 30,000 | 1,888 | 2,230 | 0 | 0 | Full SAPTO offset |
| 644,000 | 32,200 | 2,240 | 2,230 | 10 | 0.03% | Full SAPTO offset |
| 698,380 | 34,919 | 2,675 | 2,230 | 445 | 1.27% | Full SAPTO offset |
| 800,000 | 40,000 | 3,488 | 1,595 | 1,893 | 4.73% | SAPTO reduces to 1,595 |
| 900,000 | 45,000 | 4,288 | 970 | 3,318 | 7.37% | SAPTO reduces to 970 |
| 1,000,000 | 50,000 | 5,788 | 345 | 5,443 | 10.89% | SAPTO reduces to 345 |
| 1,055,180 | 52,759 | 6,616 | 0 | 6,616 | 12.54% | Beyond SAPTO cutout |
| 1,200,000 | 60,000 | 8,788 | 0 | 8,788 | 14.65% | Beyond SAPTO cutout |
Use Your Own Number
| Bank Saving |
Bank Interest at % |
Tax Before Offset | SAPTO Offset | Actual Tax Payable | Tax Rate | Notes |
|---|---|---|---|---|---|---|
| Interest: - | - | - | - | - | - |
How Tax and Super Work Together — Key Explanations
1. Pension Withdrawals Tax-Free:
After age 60, when Super is converted to pension phase, all withdrawals and investment earnings are completely tax-free (0% tax rate) and are NOT included in assessable income.
2. Bank Interest Taxation:
Interest income is included in assessable income. For income between $18,201-$45,000, the marginal tax rate is 16%.
3. SAPTO (Seniors and Pensioners Tax Offset) Rules:
- Maximum offset: $2,230 (for income <= $34,919)
- Phase-out range: $34,919-$52,759 (reduces by $0.125 for each $1 over $34,919)
- Complete cutout point: $52,759
4. Effective Tax-Free Threshold:
Approximately $32,279 (benefit from SAPTO extension beyond the standard $18,200 threshold).
5. Key Threshold Point:
Interest of $18,200 requires a deposit of $364,000 (at 5% rate), which reaches the standard tax-free threshold.
6. Interest Tax and SAPTO calculate as a single person, not couple.
Government source: https://www.servicesaustralia.gov.au/age-pension
Minimum Super Drawdown Rates by Age (Reference)
The Australian Government requires a minimum pension withdrawal from super each financial year and the required percentage depends on age.
In real life, many people keep part of their money in bank deposits, which can earn interest, while the rest remains in super. This calculator does not model that split directly. If your money is split across different places, you can use Your Own Invest Return (%) to enter a blended return that better matches your actual situation.
| Age Range | Minimum Drawdown Rate | Amount at $500,000 Balance | input your own Balance |
|---|---|---|---|
| 60-64 | 4% | $20,000 | $28,000 |
| 65-74 | 5% | $25,000 | $35,000 |
| 75-79 | 6% | $30,000 | $42,000 |
| 80-84 | 7% | $35,000 | $49,000 |
| 85-89 | 9% | $45,000 | $63,000 |
| 90-94 | 11% | $55,000 | $77,000 |
| 95 and over | 14% | $70,000 | $98,000 |