Taxation of super benefits
Taxation of rollover super benefits
A super rollover benefit is generally a lump sum super benefit payment from a complying super plan or commutation of a super annuity that is paid to a complying super plan or to purchase a super annuity. These rollovers are made within the Australian super system.
Any tax-free component or taxable component (taxed element) is not subject to tax when rolled over.
The taxable component (untaxed element) of a rollover super benefit (up to the untaxed plan cap) is assessable income of the fund and is taxed at 15% upon rollover. Untaxed elements above $1.515 million (excess untaxed rollover amounts) are taxed at 47%. This tax on excess untaxed rollover amounts is withheld by the paying fund.
Last modified: Wednesday, July 24, 2019