If you withdraw your super benefits after you turn 60 years of age, you can expect to pay NO tax on those super benefit payments, unless you are a member of certain types of public sector super funds. Further, since 1 July 2017, certain recipients of private and public defined benefit pensions will also pay tax, or pay more tax, on super pension payments (for summary super tax tables see SuperGuide article Super tax tables: When OVER 60 years of age).
Due to the large number of emails we receive on this topic, we’ll repeat the standard rule for most Australians: if you withdraw super benefit payments on or after the age of 60, your super benefit payment will be free of benefit payments tax and income tax. The two main exceptions to this standard rule are:
- where you are a member of an untaxed scheme (some public sector funds, and some tax may still apply), and
- since 1 July 2017, certain recipients of private and public defined benefit pensions.
We summarise the tax treatment of super benefits received by over-60s later in the article, and provide summary tables in the SuperGuide article Super tax tables: When OVER 60 years of age).