SuperGuide

Simple superannuation and retirement planning information

Super and tax

A Super Guide

A superannuation fund is not an investment: rather it is a structure — a tax-effective investment structure. The tax incentives that make superannuation attractive as a savings and investment vehicle, are also the same features that make super so complex.

An appropriate question to ask, is whether the tax savings offered by a super fund structure justify shifting some, most or all of your savings into a superannuation fund.

Essentially, a superannuation account is an investment account that you cannot access until a certain age (and/or you satisfy certain conditions), which is generally taxed at a lower rate than most Australians pay in income tax. For lower-income earners however, superannuation also offers some incentives, such as the Low Income Superannuation Tax Offset (more a tax compensation measure than an incentive) and the Co-contribution Scheme.

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, including the tax treatment of your super’s investment earnings in retirement phase.

You can discover 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.

Note: From 1 July 2017, the federal government introduced a transfer balance cap, which is a limit on the amount of super that can be transferred into retirement phase, and essentially limits the amount of tax-exempt earnings a super account can enjoy (see SuperGuide article Retirement phase: A super guide to the $1.6 million transfer balance cap).

Click on the links directly below to access the following topics about superannuation and tax:

Set out below are all SuperGuide articles referring to Super and tax.

Bring-forward rule: A definitive super guide

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Note: The information in this article relates to the 2018/2019 financial year and the 2017/2018 financial year. The bring-forward rule allows an eligible Australian to contribute up to 3 years’ worth of after-tax contributions (non-concessional contributions) in one year, representing the annual non-concessional cap ... Read more

For over-65s: Ten tips when making super contributions

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Australians can make voluntary superannuation contributions up to the age of 74 (that is, before you turn 75), and these super contributions can be concessional (before-tax) or non-concessional (after-tax) contributions. If you’re aged 65 or over however, then you must satisfy a work test, if you intend to make super ... Read more

Making super contributions: Aged 65 years or older

by 4 Comments

Q: From reading SuperGuide articles, I can see that since July 2017, there is no longer a special contributions cap for people between 50 and 74 years, but a general concessional contribution cap of $25,000 a year for all age groups. I can also see that for non-concessional contributions, the cap is now $100,000. Is ... Read more

SMSF pension: Can I still make super contributions?

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Q: I am 62 years of age and retired. I have recently commenced an account-based pension from my SMSF. Can I still make non-concessional contributions to that fund? A: I have divided your question into three parts. Can someone who is 62 years of age and retired, continue to make super contributions? Can an ... Read more

I’m 60. Why can’t I access my super benefits?

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Q: My husband just turned 60 years of age, and he has $80,000 in his super fund. We would like to withdraw his entire super as we need the funds to purchase a house. He is currently employed full-time and will be working for many years yet. We have sent the super fund all the documents to receive the funds, but they ... Read more