Paying tax when taking your super money out

Once your super benefit becomes payable, you can have it paid to you as a lump sum, transfer it to a complying super fund or turn it into a retirement income stream. A $1.6 million cap applies to transfers to retirement income products, such as our RI Allocated Pension.

The way your benefit is taxed will depend on three things:

  • Whether you choose a lump sum or income stream
  • Your age
  • The components of your benefit

Your taxable component will consist of a taxed element or untaxed element, depending on what kind of account you have with us.

Tax payable on benefits

Here’s an overview of the way your super is taxed according to how your benefit is paid to you.

GESB Super

  • Lump sum - if you take your benefit as a lump sum, it is taxed according to the components that make up your benefit and your age at the time of withdrawal (see the ‘Tax payable on lump-sum benefits’ table below)
  • Roll over your benefit - if you roll over all or any portion of your benefit to another super fund, no tax will apply when you transfer your benefit
  • Income stream - if you transfer your super to an allocated pension to receive an income stream, no tax will apply when you transfer your benefit

Tax payable on lump-sum benefits

No tax is payable on the tax-free component.

Tax payable on lump-sum benefits for GESB Super
 

GESB Super

 
Age
Tax withheld (including 2% Medicare Levy)

Taxable component – taxed element

Under Commonwealth preservation age

22%

Commonwealth preservation age – 59

First $200,0001 = 0%

Balance = 17%

60+

Nil

West State Super and Gold State Super

  • Lump sum
  • If you take your benefit as a lump sum, it is taxed according to the components that make up your benefit and your age at the time of withdrawal (see the ‘Tax payable on lump-sum benefits’ table below).
  • Roll over your benefit
  • If you roll over all or any portion of your benefit to a taxed super fund, you’ll be taxed on the ‘taxable component - untaxed element’ by the new fund at a rate of 15% when it is received. If you go over your untaxed plan cap per super fund (i.e. $1.445 million1) then we’ll deduct 47% tax on the excess before rolling over your money. The excess amount after tax is included in your tax-free component.
  • Income stream
  • If you transfer your super to an allocated pension to receive an income stream, the tax treatment will be the same as if you rolled over to a taxed fund.

Tax payable on lump-sum benefits

No tax is payable on the tax-free component.

Tax payable on lump-sum benefits for West State Super and Gold State Super

West State Super and Gold State Super

 
Age
Tax withheld (including 2% Medicare Levy)

Taxable component – taxed element

Under Commonwealth preservation age

22%

Commonwealth preservation age – 59

First $200,0001 = 0%

Balance = 17%

60+

Nil

Taxable component – untaxed element


Under Commonwealth preservation age

First $1.445 million1 = 32%

Balance = 47%

Commonwealth preservation age – 59

First $200,0001 = 17%

From $200,0001 up to $1.445 million1 = 32%

Balance = 47%


60+

First $1.445 million1 = 17%

Balance = 47%

How are your contributions taxed?

The way your contributions are taxed depends on whether you’re making contributions to a taxed fund, such as GESB Super, or untaxed fund, such as West State Super and Gold State Super.

There are two general types of contributions: concessional (before-tax) contributions and non-concessional (after-tax) contributions. There’s also a maximum limit (or contributions cap) you can contribute to your super before the tax treatment changes.

Find out how contributions are taxed in your account:

How much you can contribute

Do we have your tax file number?

If you don’t provide us with your tax file number (TFN), you might need to pay more tax on your super than you need to - and we may not be able to accept some of your contributions. This will also affect your eligibility for the Super Co-contribution.

To lodge your TFN, you can use Member Online, complete a tax file number form or call us on 13 43 72.

Go to Member Online

1 For the 2017/18 financial year, indexed annually in line with Average Weekly Ordinary Time Earnings, in increments of $5,000 rounded down. The untaxed plan cap applies for each untaxed scheme you are a member of.

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Page last updated 26 October 2017