Tax and super

• Tax and super (PDF 448kb)
• Income streams and tax

Taxation of lump sum benefits from taxed funds^#

Component	Tax treatment from 1 July 2008
Total benefit under $200	0%
Tax free component:
Contributions made after 1 July 2007 not subject to tax in the fund and the pre 1 July 2007 crystallised segment (eg. pre-July 1983, concessional, post-June 1994 invalidity, capital gains tax exempt, and undeducted contributions components)	0%
Taxable component:
Under preservation age	up to 20%
Between preservation age and age 60
Up to low rate threshold*	0%
Over threshold*	up to 15%
Age 60 and over	0%

^# Medicare levy (currently 1.5%) is to be added to rates shown (except a nil rate).
* Threshold for 2008/2009 is $145,000, which is indexed to Average Weekly Ordinary Times Earnings in $5,000 amounts. 
 

As of 1 July 2007 there is no tax payable on a lump sum benefit taken, or an income stream payment received, on or after the age of 60.

Should you be contributing more to super?

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• Should you be contributing more to super?