Tax and super
Generally, there are three stages where your super might be taxed:
- Investment earnings
- Withdrawing a benefit.
Tax on contributions
Before-tax (concessional) contributions
These contributions are taxed at 15% when they’re paid into your super account, as long as you haven’t exceeded your annual contribution limit. The before-tax contribution limit is $30,000 for those under age 49, and $35,000 for those aged 49 and over for the 2014/15 financial year.
After-tax (non-concessional) contributions
These contributions are generally not subject to any tax as they come from an after-tax income which has already been taxed. The limit on the amount of after-tax contributions you can make is $180,000 per year for everyone. If you’re under age 65, you can contribute up to $180,000 per financial year, or up to $540,000 over a three year period.
Tax on investment earnings
Up to 15% tax is payable on investment earnings. This tax is deducted from investment earnings before they are applied to your account.
Tax on withdrawal benefits
The amount of tax on payments from super can depend on your age, the amount of your payment and the reason for your payment.
For more information on how your super is taxed, read the Your Super Guide.
Your Tax File Number – the key to paying less tax
If you don’t provide us with your Tax File Number (TFN), you’ll pay more tax – up to 49% (including the Medicare Levy and Budget Repair Levy) on your before-tax contributions. Also, we won’t be able to accept any after-tax contributions from you.