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Taxation of super benefits

Taxation of super income stream benefits

Section: 7.11

Age Taxable component
taxed element
Taxable component
untaxed element
60 and above 0%. Non-assessable non-exempt income (NANE) MTR less 10% tax offset
Preservation age to 59 MTR less 15% tax offset MTR (no tax offset)
Below preservation age MTR (no tax offset) MTR (no tax offset)

Note: For all non-zero tax rates, Medicare levy may also apply.

See sections 7.3 and 7.8 for the taxation of death benefit and disability super benefit income streams.

15% tax offset
A 15% offset applies where:

  • the taxable component forms part of the recipient's assessable income, and
  • the recipient is aged preservation age (aged 55 to 59 depending on date of birth), or
  • the income stream is a death benefit, or
  • the income stream is a disability super benefit.
Tax offset = 15%  X   taxable component (taxed element)

Last modified: Tuesday, May 2, 2017