Untaxed source

Untaxed source is a term used to describe the tax treatment of certain super funds. A benefit from an untaxed source is a super benefit paid from a fund that doesn’t pay ‘contributions’ tax from concessional (before tax) contributions, and is not liable for earnings tax on fund earnings. In other words, less than 10% of large super funds are considered an ‘untaxed source’ and these super funds are invariably older public sector super funds. Benefits paid from an untaxed source are sourced from consolidated revenue and are generally subject to higher tax rates than benefits paid from a ‘taxed source’.

Set out below are SuperGuide articles explaining Untaxed source.

Tax-free super for over-60s to stay, promises PM

February 26, 2013
Tax word in wood fonts

In late 2012, the federal government dropped a potential T-bomb (that is, a tax bomb) and fuelled the rumours that tax-free super benefits were to be removed for over-60s. The rumours fizzled out when the government realised it would be political suicide to remove the tax-free status of retirement … [Read more...]

Retirement: Taking benefits before the age of 60

December 16, 2012
Dictionary definition of retirement

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...]

Turning 60 means tax-free super

December 16, 2012
tax

Q: I turned 60 this year and I have been sick since late last year, so I can’t get back to work and need to retire. I am wondering if you can tell me what kind of tax I have to pay if I take my super payment. I haven’t been to work since the start of December 2011. I didn’t tell them I was … [Read more...]

Are you eligible for a Commonwealth Seniors Health Card?

July 19, 2012
commonwealthseniorshealthcard

The question is a popular one among prospective retirees, and the answer can be best explained by dividing the question into four parts: What is the Commonwealth Seniors Health Card (CSHC)? Who is eligible for the CSHC? What year of income does Centrelink use when testing for CSHC … [Read more...]

Is my super pension income counted when applying for the Commonwealth Seniors Health Card?

January 5, 2012

Q: I have searched numerous websites but cannot find a simple answer. I intend starting my allocated pension next month when I turn 64 but can't find out if I am entitled to the Commonwealth Seniors Health Card. The Centrelink info sheet quotes income limits but this appears to turn into 'taxable … [Read more...]

Accessing super: Turning 55 is not enough

February 17, 2011
keydoor

Q: I am 57 years old, born 1953. I thought I could access my super funds from age 55 but I have been told I can’t access my funds until age 60. Is this correct? If I withdraw my super benefits, is there any tax payable? Trish’s response: The general rule is that you must have reached your … [Read more...]

Not all super payments count for Seniors Health Card from July 2009

March 20, 2009
Commonwealth Seniors health card

Note: This article is no longer current. In the 2009 Federal Budget, the Government announced that super pension income from a taxed source would not be counted for the Seniors Health Card income test. You can find out about this change in the article Super pension income excluded from health … [Read more...]