Skip to main content

Tax and super

How super contributions and withdrawals are taxed

Page reading time: 2 minutes

How much tax you pay on your super contributions and withdrawals depends on:

  • your total super amount
  • your age
  • the type of contribution or withdrawal you make

If you inherit someone's super after they die, the person's super fund pays you a super death benefit. You may have to pay tax on some of this benefit.

Because everyone's situation is different, it's always best to get advice about tax matters. Contact the Australian Taxation Office (ATO) or a financial adviser.

How super contributions are taxed

Money paid into your super account by your employer is taxed at 15%. So are salary-sacrificed contributions, also known as concessional contributions.

There are some exceptions to this rule:

If you make contributions from your after-tax income — known as non-concessional contributions — you don't pay any contributions tax.

See tax on contributions on the ATO website for more information about how much tax you'll pay on super contributions.

To avoid paying extra tax on your super, make sure you give your super fund your Tax File Number.

How super withdrawals are taxed

The amount of tax you pay depends on whether you withdraw your super as:

Everyone's financial situation is unique, especially when it comes to tax. Make an informed decision. We recommend you get financial advice before you decide to withdraw your super.

Super income stream

A super income stream is when you withdraw your money as small regular payments over a long period of time.

If you're aged 60 or over, this income is usually tax-free.

If you're under 60, you may pay tax on your super income stream.

See retirement income tax.

Lump sum withdrawals

If you're aged 60 or over and withdraw a lump sum:

If you're under age 60 and withdraw a lump sum:

If you have not yet reached your preservation age:

See the super lump sum tax table on the ATO website for more detailed information.

When someone dies

When someone dies, their super is usually paid to their beneficiary. This is called a super death benefit.

If you're a beneficiary, the amount of tax you pay on a death benefit depends on:

See super death benefits on the ATO website for detailed information.