Super and tax

Superannuation is intrinsically linked with tax. Super is a tax-effective investment vehicle designed to help fund your retirement by:

• having lower (concessional) tax rates for fund contributions and earnings
• generally providing tax-free withdrawals once you reach your preservation age and meet a condition of release

Super is typically taxed at three stages:

• when your contributions enter your fund,
• when your fund earns investment income, and
• when you withdraw benefits (though these are generally tax-free if you’re over 60).

Superannuation tax legislation can be complex. This section is designed to give you a general understanding of how super is taxed in Australia. It may also be worthwhile to seek independent professional advice based on your individual superannuation circumstances.

Note: It’s essential to provide your super fund with your tax file number, otherwise your fund is legally obliged to tax your contributions, fund earnings, and potentially withdrawals at the highest marginal tax rate (currently 47%).