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 contributions: $1 million opportunity

Gold_9141057_c

Q: I am aged 54. How much can I make in super contributions without attracting penalty tax? Is it $210,000 or $215,000 or some other figure?A: Before I answer your question in detail, for the benefit of other readers I will first explain the figures you quote in your question.The general … [Read more...]

Clients come first: Financial advice reform saga continues

Pixmac000068878981_maze_14

In recent months I have kept fairly quiet about the financial advice reforms. Until recently, what more was there to say about a set of rules designed to favour the outdated business models of many financial planning businesses? Note that I am not targeting the advice provided by the firms with … [Read more...]

Same-sex couples: your super rights explained

Same sex super rights

The Australian parliament has decided that it was not the right time to allow same sex couples to marry, and more recently we have elected a Prime Minister who has publicly stated that he feels uncomfortable around homosexuals. We have a new government with a leader who is personally against … [Read more...]

Super for beginners, part 17: Four must-knows about super’s tax rules

SuperGuideCustomImages.007

Q: I am trying to understand how my super is taxed and it seems that it is taxed at every turn. Can you please explain when, and how, a super benefit is taxed?A: If it were not for tax, superannuation wouldn’t exist. You would simply invest in your own name. Superannuation is taxed at lower … [Read more...]

Why women have to save more super

Women superannuation

When we first launched SuperGuide nearly 6 years ago, I wrote an article explaining why tax-free super in retirement is a non-issue for most women. The reason for making this statement, and which remains valid 6 years later, was that women, on average, have such low super account balances that the … [Read more...]

Super for beginners, part 22: How do you speak ‘superannuation’ (… in 20 words)?

Pixmac000066238025_learn

Many Australians find the stodgy language of superannuation confusing. The terminology associated with superannuation is a barrier to self-education and may deter some Australians from taking early steps to plan for retirement. Millions of Australians care about their super account even though they … [Read more...]

CSHC income test: What is untaxed superannuation and taxed super?

Taxed_4354843_c

Note: This article explains how super benefits are counted towards the Commonwealth Seniors Health Card. If you are seeking more detailed information on the CSHC changes announced in the 2014 Budget, or whether you’re eligible for a CHSC, see SuperGuide articles Seniors Health Card (CSHC) changes to … [Read more...]

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

Pixmac000042714013_tfn_form

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

sacrifice

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?

315193729_196485f07f_o

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...]