IMPORTANT: SuperGuide does not provide financial advice. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Readers need to seek independent advice about their personal circumstances.

Comments

  1. I plan to retire at 55 (now52). I am in a DFB scheme (taxed) and will get a fornightly pension of circa $1600. Born in 1961 my preservation age is 57. Will I get a 15% tax rebate on my pension until 60?

    Ta Rob

    • Hi Rob
      Thanks for your email.
      Note: I am not sure if you’re saying that your pension benefit is ‘taxed’ as opposed to ‘untaxed’, or is going to be taxed beyond the age of 60, which is by definition is ‘untaxed’ (that is not taxed during accumulation phase so is then taxed in pension phase). The terminology used can be confusing. In any case,
      The general rule for super benefits from a ‘taxed source’ (most super funds are taxed although some public sector funds are not) is that the pension benefit is counted in your assessable income, but you receive a 15% pension rebate on the taxable component of a super pension benefit when received before the age of 60 (and on or over the age of 55). The tax-free component of the benefit is not counted in your tax return.
      If the super benefits are from an ‘untaxed’ source, and received under the age of 60 (but on or over the age of 55), then on the taxable component you pay tax at your marginal tax rate. No 15% pension rebate is available. Tax-free component of the ‘untaxed’ benefit is not subject to tax.
      I will cover this in more detail in the July 2013 newsletter but in the meantime, the ATO has a handy (albeit technical) summary of the tax rules for pensions: http://www.ato.gov.au/individuals/PrintFriendly.aspx?doc=/content/86252.htm&page=5#P61_3975
      Regards
      Trish

  2. john steinthal says:

    Hi Trish, superb website. Well done.
    Can I ask a question?
    Lets assume I have 1,000,000 in shares in a SMSF earning 10% dividends. After age 60 is the 100,000 income per year taxed at 15% , or is there no tax on super earnings after age 60? And can I keep these shares in my super fund and pay no tax on the earnings or do I have to buy an annuity type product to get that benefit?
    thanks

  3. Waner Ren says:

    this website is the best super guide websit that i have ever used so far, it’s even a lot better than books and legislations, everything is explained so well and clear, i have learned so much about super from here

    • Hi Waner
      Many thanks for your positive comments and taking the time to let us know.
      We are very proud of SuperGuide and we work hard to make a complex topic like superannuation as straightforward as possible.
      Regards
      Trish

  4. Trish Cameron says:

    Hi Trish
    Your website is a marvellous resource to answer all those tricky questions I have. I usually decide what is a logical answer but the consequences of ‘guessing’ wrong can be punitive. Your answers are so clear and easy to understand.
    Thank you very much, Trish.
    Trish

  5. Hi Trish,

    Quick question..If at 55 I take up to $150,000 out of my super as a lump sum tax free, when I turn 60 will I be able to draw down as a lump sum the rest of my super tax free?
    Many Thanks,
    Alex Pantazis

  6. Im 30 years old and in 2009 I claimed $5000 of my super due to illness therefore not being able to work, I only received $3950, will I get that back if I havent worked since in 2010.

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