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Taxation of super benefits

Determining the tax-free and taxable proportions of super benefits

Section: 7.13

The tax-free and taxable proportions of a super benefit are determined by the tax-free and taxable proportions of the super interest from which it is paid. The super interest is valued at different times depending on whether it is in:

  • accumulation phase
  • pension phase - post 1 July 2007 pension, or
  • pension phase - pre 1 July 2007 pension.

Once the tax-free proportions and the taxable proportions are determined they are applied to the benefit being paid.

Tax-free component

The tax-free component of a super interest is:

- the contributions segment, plus
- the crystallised segment (fixed at 30 June 2007).

Contributions segment
The contributions segment of a super interest consists of the contributions made after 30 June 2007, to the extent that they have not been and will not be included in the assessable income of the super provider, eg non-concessional contributions.

Other contributions not included in the assessable income of the fund can be found in the two tables in section 5.5 with the exception of excess concessional contributions (which are included in the assessable income of the fund).

Crystallised segment
The crystallised segment of a super interest is a fixed dollar figure. It is the 30 June 2007 value of the following components:

  • concessional
  • post June 1994 Invalidity
  • undeducted contributions
  • CGT exempt, and
  • pre July 1983

Taxable component

The taxable component of a super interest is the:

Value of the super interest - tax-free component

eg concessional contributions and earnings.

Last modified: Tuesday, May 2, 2017