Taxation of lump sum super payments
Age of person receiving the payment | Tax Rate Payable* |
60 and Over | Nil |
55 to 59 | |
Up to Tax Free Threshold low rate threshold of $245,000 | Nil |
Excess Over Tax Free Threshold | 15% |
Under 55 | 20% |
Permanent Invalidity Payments | Nil |
Temporary Invalidity Payments | At Marginal tax rate |
Death benefits | |
To dependants | Nil |
To Non-dependants | 15% |
Tax payable on superannuation pensions
Age of person receiving Pension | Tax rate payable* |
60 and Over | Nil |
55 to 59 | At marginal rate less 15% super pension rebate |
Under 55 | At marginal tax rate |
Permanent Invalidity Payments | Nil |
Temporary Invalidity Payments | At marginal tax rate |
Death benefits | |
To dependants over 60 | Nil |
To dependants under 60 | At marginal rate less 15% super pension rebate |
* In addition to tax rate payable Medicare levy is also payable
Division 293 superannuation tax | |
On taxable income plus super contributions under $250,000 | zero |
On superannuation component exceeding taxable income plus super contributions | 15% |
Death Benefit Payments | |
Lump sum payments to a dependant | zero |
Lump sum payments to non-dependants if paid to | |
The deceased’s estate | 15% |
To the beneficiaries including Medicare levy | 17% |
Commonwealth government co-contribution
To satisfy this test, 10% or more of your total income must come from either or a combination of:
- employment-related activities
- carrying on a business.
Lower income threshold to receive maximum $500 entitlement | $45,400 |
Income limit when no co-contribution is paid | $60,400 |
Concessional contribution limits | |
Total concessional contributions limit | $30,000 |
Non-concessional contribution limits | |
Annual limit if total superannuation balance below $1.9 million | $120,000 |
Maximum contribution under the bring forward rule if total superannuation balance is below $1.66 million | $360,000 |
Between $1.66 million and less than $1.78 million | $240,000 |
Between $1.78 million and less than $1.9 million | $110,000 |
Balances over $1.9 million | zero |
Small business CGT concession superannuation contribution limits | |
Maximum lifetime limit for the small business retirement exemption | $500,000 |
Maximum limit under the 15 year CGT exemption and retirement exemption combined | $1.78 million |
Minimum superannuation pension rates
Age | |
55 to 64 | 4% |
65 to 74 | 5% |
75 to 79 | 6% |
80 to 84 | 7% |
85 to 89 | 9% |
90 to 94 | 11% |
95 and over | 14% |
When you can access you super
Age | Conditions |
65+ | No conditions, super can be accessed at any time |
60 to 64 | Termination of employment |
55 to 59 | Transition to retirement pension |
Retire and not intending to work more than 10 hours a week. | |
18 to 65 | Severe financial hardship, |
Terminal Illness | |
Compassionate grounds, | |
Permanent incapacity, | |
Temporary incapacity, | |
Death, and Departing Australia permanently. |
All Ages – Death or to pay excess contributions tax
