Super and tax

Find out how your superannuation is taxed including what happens if you retire before the age of 60, the tax-free benefits on or after the age of 60, how the earnings on your super savings are taxed, how your super contributions are taxed, and the tax implications of leaving your super benefits to family or friends when you die.

You can also learn some of the popular tax-effective super strategies, including how the super tax rules affect SMSFs.


Below are some of our key Super and tax articles:

Set out below are all SuperGuide articles explaining Super and tax.

Super for beginners, part 14: Save tax – Supply TFN to your super fund

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Here’s a tip that can potentially save you thousands of dollars. Check that your super fund has your tax file number. If you joined a super fund before July 2007, or started your current job before July 2007, then your fund may not have your TFN. Effective since 1 July 2007, when you give your … [Read more...]

Salary sacrificing will not increase co-contribution entitlement

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Q: I understand salary-sacrificed super contributions must be added back in to assessable income for co-contribution purposes. Do you know anything about this? Yes, your understanding is correct. Salary sacrificed contributions count towards the co-contribution income test, and this has been the … [Read more...]

SMSFs: What is the proportioning rule?

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Q: I have come across a statement which refers to a proportioning rule. Could you please explain to me exactly what the proportioning rule is, who it applies to and when it applies, and how you do the calculations for a SMSF? The short answer is: the proportioning rule is a mechanism to calculate … [Read more...]

Super health check for beginners: 10 tips for your 2014/2015 retirement planning

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Note: This article is current for the 2014/2015 financial year. Near the start of each financial year, SuperGuide publishes an updated super checklist for beginner readers. More advanced checklists will follow in coming months. Use this list as a kick-start for your 2014/2015 super resolutions. … [Read more...]

Two-way traffic! Finally, one fund helps move super from NZ to Australia

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An Australian super fund is now accepting transfers from New Zealanders hoping to transfer their KiwiSaver accounts to Australia. Let’s hope that many more super funds follow, but in the meantime, WA Super is the only Australian super fund offering this service, and it is awaiting your KiwiSaver … [Read more...]

SMSF: If I die young, will my wife pay super tax on the life insurance payout?

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Q: I have a life insurance policy owned by my SMSF worth approximately $2 million. Currently there is only about $80,000 accumulated in the fund. I am 40 years old. If I die tomorrow is my wife able access an income stream from the fund tax-free? For instance, upon my death if this $2 million was … [Read more...]

SMSFs: Can I transfer my life insurance to my DIY super fund?

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Q: I have searched the ATO site to determine if we can have our SMSF pay life insurance for members. I am unable to find whether these things are arm’s length in regard to existing policies or not. There seems no writing to assist with a transition of these items into the fund and then the fund … [Read more...]

Estate planning: Dear Dad, Tax for everything

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If you plan to leave your super to your adult children when you die, your death benefit may be hit with benefits tax, even though you would have received that benefit tax-free (if aged 60 or over) while you were alive. The reason for this inconsistency is that death benefits paid to individuals … [Read more...]

Estate planning: Beware the dastardly death tax

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Although superannuation death benefits are tax-free when paid to individuals considered ‘dependants under the tax laws, a ‘death tax’ continues to apply when super monies are paid to individuals considered ‘non-dependants’ under the tax laws’. Any of your children aged 18 or over, who can’t prove … [Read more...]

How can a SMSF live forever?

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Q: It has been suggested, that a family self-managed super fund (SMSF) can become a multi-generational tax haven, which can go on into perpetuity, provided that you establish a special corporate trustee, as well as an SMSF Will. I thought that the super money could not remain in the fund … [Read more...]