Tax-free super

Tax-free means no tax is payable. In terms of superannuation, anyone aged 60 or over can expect tax-free super benefits (unless you’re a public servant). Even when you’re under the age of 60, you may be able to access tax-free benefits.

Set out below are all SuperGuide articles explaining Tax-free super.

No tax in retirement because you SAPTO (updated rates)

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This article is updated annually with new rates, or periodically to highlight changes (if any) to the Seniors & Pensioners Tax Offset (SAPTO) rules. This article includes SAPTO rates for the 2014/2015, 2013/2014, and 2012/2013 years, and SATO rates for the 2011/2012, 2010/2011, 2009/2010 and … [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...]

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...]

SMSF trustees unfairly targeted by super tax illiterates

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Some leaders in the superannuation sector and in some economic think tanks are ignorant about SMSFs, including how the super tax rules work generally. Yet we have numerous pronouncements by various individuals and organisations about SMSFs not paying tax, or SMSF trustees not having the skills to … [Read more...]

Cashing in on the co-contribution rules (2014/2015 year)

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Note: The co-contribution rules for the 2014/2015 year (and for the earlier 2013/2014 and 2012/2013 years) are very different from the co-contribution rules applicable for the 2011/2012 year. For your reference and convenience, we have retained the co-contribution rules for these previous years, at … [Read more...]

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

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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...]

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

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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...]

Seniors Health Card (CSHC) changes, to become law

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At the time of writing, the legislation changing the income test for the Commonwealth Seniors Health Card has now passed both houses of parliament and awaiting royal assent. Several other changes affecting the CSHC rules are also awaiting royal assent, which means the changes outlined below are set … [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...]