Tax may apply to your superannuation on contributions, investment earnings and on benefits. Please note that tax can be complex and that you may, in some circumstances, wish to seek expert tax advice.
Tax on Contributions
Contributions are generally classified as either concessional (employer, salary sacrifice and self-employed contributions) or non-concessional contributions (voluntary after-tax and spouse contributions, plus transfers from most overseas funds).
Concessional contributions are normally taxed at 15% when they are paid into Christian Super. However, amounts received above the maximum limit in a financial year are taxed at the top marginal rate of 45% plus Medicare levy.
Non-concessional contributions are not taxed.
Tax on Rollovers
When you rollover an amount from another super fund you will normally not pay any lump sum tax. If your rollover has an untaxed component, it will be taxed at 15% at the time of receipt by Christian Super.
Tax on Investment Earnings
Investment earnings are generally taxed at the rate of 15%. However, concessions are made for certain types of investments, franking credits and capital gains tax discount, and so the actual rate of tax paid within the fund is generally lower that 15%.
This tax is deduced before investment earnings or losses are declared. Investment earnings relating to pensions are tax-free.
Tax on Payments - Age 60 and Over
If you are age 60 or over all payments from your superannuation account are totally tax free, whether paid to you as a lump sum or as a regular pension amount.
Tax on Payments - Age Under 60
If you are below age 60 your superannuation account will be made up of a tax-free component and a taxable component. These components will be calculated at the time of your benefit payment. Please don’t hesitate to contact the Helpdesk to help you calculate the tax before you request a lump sum withdrawal.
Tax on Death Benefits
A lump sum death benefit paid to your dependants will be tax-free. If the benefit is not paid then the taxable component will be taxed at 15% plus Medicare levy.
Tax on Disablement Benefits
A lump sum disablement benefit will be tax free if you are age 60 or over. If you are under the age of 60, the tax free component will also include the portion of the benefit relating to future service, and the resulting taxable component will be taxed at 15% plus Medicare levy.
