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.

Turning 55: Taking super, tax and timing

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Q: If at 55, I take up to $185,000 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 superannuation without having to pay tax as well? A: For an individual to access preserved super benefits they must satisfy a condition of release, … [Read more...]

I’m under 60. Does my super payout also affect my other income, and tax bill?

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Q: I have tried to phone the ATO re this query. Could you tell me the answer to this question? I turn 55 soon and I am eligible for a super payout of $185,554 next month of which only the $554 is taxable at 17.0%. However I still intend to keep working at my $58,000 a year job and wondered how this … [Read more...]

Tax-free super for over-60s, except for some

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If you withdraw your super benefits after you turn 60 years of age, you can expect to pay no tax on those super benefits, unless you are a member of certain public sector super funds (see summary table at the end of this article). Due to the large number of emails I have received about this topic … [Read more...]

I’m 58 and I have $230,000 in super.
Will my super be taxed?

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Q: I’ve just turned 58, and I’m thinking of retiring before I turn 60. I would like to know whether I would have to pay tax on my superannuation. I know that after I turn 60, it’s tax-free, so my inquiry is regarding the period until I turn 60. My super money consists of compulsory employer … [Read more...]

I retired at 59. Do I pay tax on my superannuation lump sum?

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Q: I retired in September 2014. I’m now living on a tiny super pension of about $710 a fortnight. In September 2014, I also received a $15,000 superannuation lump sum. The tax free component of my total superannuation is 66% and the taxable component is 34%. I turned 60 in February 2015. Do I have … [Read more...]

SuperGuide checklist: 10 more ways to boost your super

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Note: This article is the second in a special two-part series that SuperGuide updates regularly, designed to help SuperGuide readers more easily access the hundreds of questions and articles that we have published on the SuperGuide website. This article, ’Super checklist: 10 more ways to boost your … [Read more...]

Retirement: 3 ways of taking super benefits before the age of 60

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When you retire early, you’re going to have to make a few decisions. The tax implications of your retiring before the age of 60 can depend on whether you take your super as a lump sum and/or income stream. Are you taking your super as a lump sum, an income stream or a combination of … [Read more...]

Retiring before the age of 60: the tax deal

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If you retire before the age of 60, your super benefits are likely to be subject to tax — but not always. With the right structure, and usually with expert advice, many Australians retiring early can end up paying no tax. If you’re willing to wait until you turn 60 before you retire, you can … [Read more...]

Super for beginners, part 15: Super tax – as easy as 1-2-3

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Superannuation only exists because of how super savings are taxed. Superannuation savings receive tax incentives to encourage Australians to choose super as a retirement savings option. Even so, superannuation is still taxed (for most Australians) at a lower rate of tax than non-superannuation … [Read more...]

Pension earnings remain tax-free after death

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Regulations took effect from 1 July 2012 (although registered in June 2013) confirming that pension earnings remain tax exempt upon the death of a fund member receiving a super pension, even when there is no reversionary pension (that is, the pension of the deceased fund member does not … [Read more...]