How your super is taxed

Get to know how tax relates to your super and how you can minimise it. 

The ways your super can be taxed

Most of us will pay less tax on money we put into super. And if you access your super after age 60, you’ll pay no tax on your super at all.

Your super can be taxed in four different ways:

  1. When you make a before tax contribution
  2. If you make after-tax contributions beyond certain limits
  3. On investment earnings
  4. When you withdraw super 

Before tax contributions also have limits set by the Government on how much you can add to your super account. If you contribute above these limits, you may pay extra tax.

Your Tax File Number – the key to paying less tax

Since super can be a tax effective way to invest and save for retirement, remember the following golden rule. If you’re a member, and you haven’t given us your Tax File Number (TFN), you’ll pay more tax – up to 47%* on your before-tax and your employer’s SG contributions.

Super funds can’t accept any after-tax contributions if you haven’t provided your TFN.

Supply my TFN online https://www.australiansuper.com/tools-and-resources/forms-and-publications/tfn-collection-form.aspx

* Includes the Medicare levy.

Tax on before tax contributions

Before tax contributions are mainly employer contributions, salary sacrifice contributions and personal contributions claimed as a tax deduction. They’re taxed at a rate of 15% if you earn less than $250,000 a year, and 30% if you earn more than $250,000 a year.

Tax on after-tax contributions

After-tax contributions are typically extra, voluntary contributions you make with your take-home pay, including contributions for your partner or perhaps when you sell a house or receive a bonus. You must give us your Tax File Number (TFN) before we can accept after-tax contributions.

Tax on investment earnings

Your investment earnings are taxed at a rate of up to 15%.

Tax on withdrawals

Any withdrawals you make are divided into a tax-free and a taxable component, which are calculated from the type of contributions that have been made to your account

To find out how much is tax-free and how much is taxable, you can get a benefit quote from your online account, or call us on 1300 300 273.

Tax deductions – are you eligible?

All members are able to claim a tax deduction for personal contributions.  To do this, you’ll need to lodge a Notice of intent to claim a tax deduction for personal super contributions form. This tells us the amount you want to claim. We’ll write back confirming the amount. A 15% contributions tax will then be deducted from your contributions and reported on your next member statement. From there you can submit your tax return stating the amount you want to claim as a tax deduction in the supplementary section of your tax return.

Claiming a tax deduction for personal contributions - pdf, 115KB

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