Superannuation Tax
Tax on Contributions
Contributions are generally taxed at the rate of 15% when they are made. The exceptions are:
- Contributions made from your after-tax income
- Contributions where you are not claiming a tax deduction.
Tax on Investment Returns
Investment Returns are taxed before they are credited to your account. Tax is generally at the rate of 15%, although deductions and franking credits reduce the amount of tax actually paid.
Tax on Benefits
Historically, complex tax rules have applied to superannuation benefits. However, from 1 July 2007 the Government is implementing very significant changes - in basic terms from that time:
- No benefit taxes will apply if the benefit is taken after reaching age 60 (please contact our Helpdesk if you need to know your tax situation before age 60).
- Reasonable Benefit Limits will be abolished.
- Pension products (such as Allocated Pensions) will be greatly simplified.