How Super is taxed

by

Superhero Team

August 2nd 2021 3 minute read

Contributions, investment income and withdrawals from your account may be assessed for tax purposes by the ATO, however, generally any taxes applicable to superannuation are at a concessional (lower) rate. Concessional tax rates do not apply on contributions which exceed Government contribution limits. Learn more about how super is taxed below.

Full information on tax and super can be found on the ATO website or the Australian government’s moneysmart website.

Contributions

Concessional contributions (for example, employer contributions and deductible member contributions) are ordinarily subject to a contributions tax rate of 15% provided you have supplied the Trustee with your Tax File Number (TFN). Superhero Super calculates the contributions tax payable. Non-concessional contributions (for example, non-deductible member contributions) are usually not subject to tax. 

If your concessional contributions and/or non-concessional contributions in a financial year exceed Government contribution limits, additional (excess) taxes will ordinarily apply. Excess taxes for contributions are a personal tax liability which must be released from your fund in the case of excess non-concessional contributions. You may choose to release up to 85% of your excess concessional contributions which would be paid by us to the ATO after receiving a release authority. Taxes may apply to transfers of superannuation into Superhero Super from an untaxed source (for example, certain public-sector schemes).

Investment Earnings

Net earnings relating to accumulation accounts are subject to a tax rate of up to 15%, however the rate may be less due to tax credits or other rebates. To learn more about how investment earnings in super are taxed visit the ATO website.

Withdrawals

If you are under 60 years of age but have reached your preservation age, the taxable component of lump sum superannuation payments is subject to tax at the maximum rate of 15% (plus Medicare levy). A tax-free threshold, which varies from year to year, applies. Benefits paid age 60 and over, lump sum death benefits paid to dependants and terminal illness benefits are generally tax-free. Taxes do not usually apply to transfers to another superannuation fund.

 

Please read our Product Disclosure Statement, Additional Information Guide, Investment Guide and Insurance Guide in addition to our Target Market Determination for our Autopilot Account and Control Account for full information regarding Superhero Super. A Target Market Determination (TMD) is a document which describes who a product is appropriate for.

The information on this webpage has been prepared by Superhero Markets Pty Ltd (ABN 36 633 254 261), a Corporate Authorised Representative (CAR No. 1276309) of Sanlam Private Wealth Pty Ltd (ABN 18 136 960 775) (Australian Financial Services Licence (AFSL) No. 337927) and Superhero Securities Limited (ABN 96 160 456 315) (AFSL No. 430150). Superhero Super is issued by Diversa Trustees Limited (ABN 49 006 421 638), (AFSL No 235153), as trustee of OneSuper (ABN 43 905 581 638). Superhero Super is a sub-plan of OneSuper. Superhero Super is a sub-plan of OneSuper.