Tax

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.

Investment earnings relating to pensions are tax free. This will generally be reflected as higher positive returns (or lower negative returns) under each investment option, when compared to the equivalent non-pension option.

If you are age 60 or over all payments from your pension account are totally tax free, whether paid to you as a regular pension amount or as a lump sum.

If you are below age 60 your pension account will be made up of a tax free component and a taxable component. The tax free and taxable proportions of your account will be fixed when your pension starts.

Your tax free component will comprise:

• A fixed amount calculated for your superannuation account at 1 July 2007; plus
• Any undeducted contributions you have made since 1 July 2007.

Please contact our Helpdesk if you would like to know more details on the calculation of your tax free component.

Prior to age 60, you will incur tax at your marginal rate plus Medicare levy on pension payments relating to the taxable component of your account each year. To reduce the tax we deduct, you can arrange for Christian Super to apply your tax free threshold to your pension payments we will send you the required tax form when you apply for a pension.

In limited circumstances where you have met preservation release requirements but are under age 60, you may be able to claim a 15% tax offset on the taxable component of your pension.

Shortly after each 1 July, we will send you payment summary and other information to help you complete your annual tax return.

Any taxable component of a lump sum payment prior to age 60 will be subject to tax, at 15% plus Medicare, if it exceeds the tax-free threshold ($145,000 in 2008/9). A higher tax rate applies to payments prior to age 55. You can ask our Helpdesk to calculate the tax before you request a lump sum withdrawal.

You may wish to seek financial advice to help you work out your tax situation.

Any reversionary pension that continues to be paid to your spouse is generally taxed in the same way. 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.