What is the Low Rate Cap for Superannuation Lump Sums and Commutations?

Low Rate Cap Amount

The low rate cap amount is the limit set on the amount of taxable components (taxed and untaxed elements) of a super limp sum that can receive a lower (or nil) rate of tax. It applies to members that have reached their preservation age but are below 60 years.

It is a lifetime cap which is reduced by any amount previously applied to the low rate threshold.

The low rate cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down). The new indexed amount is generally available each February.