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Taxation of super benefits

Taxation of rollover super benefits

Section: 7.7

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 $1.445 million (excess untaxed rollover amounts) are taxed at 47%. This tax on excess untaxed rollover amounts is withheld by the paying fund.

Last modified: Friday, January 12, 2018