Superannuation is taxed:
> when contributions are made
> on investment earnings
> if you take a benefit before retirement at 60.
We deduct the tax payable and remit it to the Australian Taxation Office.
Superannuation benefit payments are tax free once you reach 60 and have retired.
Tax on contributions
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Employer contributions
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Salary sacrifice contributions
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Personal after-tax contributions
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Co-contributions
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Tax payable
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Yes, at 15% (if we have your Tax File Number)
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Yes, at 15% (if we have your Tax File Number
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No
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No
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Tax on contributions is deducted at the end of the financial year. If you leave ACSuper part way through the year, tax is deducted on exit. If you exceed the contribution limits described in the Contribution section, then you pay extra tax.
Tax on investment earnings
Up to a maximum of 15% tax is payable on the investment return your account earns. This tax is deducted before investment returns are declared, so unit prices are shown after tax.
Tax on benefits – a general guide
Tax on benefits is a complex topic. We recommend you discuss your own personal situation with a licensed financial adviser, as the decisions you make about how and when to take your benefit can affect the tax payable and your age pension entitlements. For up-to-date tax information, visit www.ato.gov.au/super or call the Australian Taxation Office on 13 10 20.
Tax on retirement benefits and withdrawal benefits
> If you are 60 or over, you will pay no tax on your benefit.
> If you are between 55 and 60, your benefit will be made up of a tax-free and a taxable component.
The taxable component will be paid tax-free up to a lifetime limit of $165,000 (for the 2011/12 year),
with any amount above that limit taxed at 16.5% including the Medicare Levy.
> If you are under 55, the entire taxable component of your benefit will be taxed at 21.5%, including the Medicare levy.
> If you are terminally ill your benefit will be tax free.
Note: The Government has introduced a Temporary Flood and Cyclone Reconstruction Levy (flood levy) of up to 1% applying to income for the 2011/12 year only. The levy will apply to that part of the taxable component above $50,000.
Rollovers into or out of a superannuation fund
Generally, no tax is payable.
Death benefit
Lump sum death benefits paid to dependants (as defined for tax purposes) are tax free. If paid to a non-dependant, part of the benefit will be taxed.
Total and permanent disablement benefit
Total and permanent disablement benefits are taxed at different rates, depending on your age when you were disabled.
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Don’t pay more tax than you have to. Provide your Tax File Number (TFN)!
Providing your TFN to ACSuper is not compulsory. However, if you do not provide your TFN, employer and salary sacrifice contributions will be taxed at your top marginal tax rate. Personal contributions cannot be accepted at all without a TFN.
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