The amount of tax paid on contributions depends on your age, the amount and whether it is a before or after tax contribution.
Your Tax File Number – the key to paying less tax
If you haven’t given your Tax File Number (TFN) to your super fund, you’ll pay more tax – up to 46.5% on salary sacrifice and employer SG contributions.
Super funds also can’t accept any after-tax contributions from you if you haven’t provided your TFN.
So don’t pay 46.5% tax – supply your TFN online now.
Tax on contributions
| Type of contribution |
Tax if you're under 50 |
Tax once you turn 50 (until June 2012) |
| Before-tax (employer Superannuation Guarantee and salary sacrifice) |
15% on amounts up to $25,000 a year. 46.5%* on amounts more than $25,000 a year. |
15% on amounts up to $50,000 a year. 46.5%* on amounts more than $50,000 a year. |
| After-tax |
0% on amounts up to $150,000 a year.
46.5%* on amounts more than $150,000 a year.
If you're under 65 you can contribute $450,000 tax free in the first year of a three-year period (by bringing forward the limits for the next two years). Any more contributions in the following two financial years will be taxed at 46.5%.* |
Tax on super going out of your account
Withdrawals from AustralianSuper are tax-free if you are aged 60 or over. Taxation of lump-sum withdrawals for members under 60 is outlined below.
| Component |
Tax |
| Tax-free |
No tax payable |
| Taxable |
If aged under 55, taxed at 21.5%*.
If aged between preservation age and 59 years, the first $165,000 is tax free and the balance is taxed at 16.5%.
|
Tax on withdrawals is deducted before you receive your payment.
* Including the Medicare levy
Tax on investment earnings
Investment earnings are taxed up to 15%. This tax, along with investment management fees, is deducted before your investment earnings are applied to your account. Earnings are applied to your account as ‘crediting rates’ every 6 months or when you transfer out of the Fund or switch investment options.
Limits on the lower tax rates on contributions
Before-tax payments
If you are less than 50, any before tax contributions, such as Superannuation Guarantee and salary sacrifice, of more than $25,000 per year will be taxed at the highest rate of 46.5%.
However, members aged 50 years or over are entitled to a higher limit of $50,000 pa until 1 July 2012, when the limit may decrease further to $25,000 for all members regardless of age. If you exceed this limit the contributions will be taxed at the highest marginal tax rate of 46.5%.
After-tax contributions
After-tax contributions made by members (also called non-concessional contributions), are not taxed when paid into super because they’ve already had income tax deducted.
These contributions are limited to $150,000 per person per year or $450,000 over three years for members under age 65. Excess contributions are taxed at 46.5%.