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Taxation of super benefits

Taxation of rollover super benefits

Section: 7.9

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. Some transactions known as rollovers prior to 1 July 2007 are now considered to be contributions, eg overseas pension transfers and CGT exempt amounts (see section 2.10).

The 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 $1.415 million for 2016-17 (excess untaxed rollover amounts) are taxed at 49% . This tax on excess untaxed rollover amounts is withheld by the paying fund.

The untaxed plan cap is indexed to AWOTE each 1 July.

Rollover super benefit (for 2016-17) Taxed element  Untaxed element 
First $1.415 million (untaxed plan cap amount) Nil 15%
Balance above $1.415 million (excess untaxed rollover amount) Nil 49%

Last modified: Tuesday, May 2, 2017