Tax on withdrawals
You may have to pay tax on lump sum withdrawals from super, depending on your age, the amount you withdraw and other factors.
What tax rates are payable on lump sum payments to fund members?
The table below summarises the maximum tax rates payable on lump sum withdrawals from a taxed superannuation fund in 2019/20. Different tax rates apply if the payment is made in the event of death – see further down on this page. Check your latest statement or contact your super fund to confirm the tax components of your super account.
Taxation of lump sum member benefits
Tax component |
Age | Maximum tax rate |
|---|---|---|
Tax-free |
Any |
Tax-free |
Taxable (taxed element)
|
Under preservation age |
20%1 |
Preservation age to 59 |
Up to $210,000 – 0% Above $210,000 – 15%1 |
|
| Age 60+ | Tax-free | |
Taxable (untaxed element) |
Under preservation age
|
Up to $1,515,000 – 30%1 Above $1,515,000 – 45%1 |
| Preservation age to 59 | Up to $210,000 – 15%1 Between $210,000 and $1,515,000 – 30%1 Above $1,515,000 – 45%1 |
|
| Aged 60+ | Up to $1,515,000 – 15%1 Above $1,515,000 – 45%1 |
1. Plus Medicare levy.
What tax rates are payable on lump sum death benefits?
The table below summarises the maximum tax rates payable when super is paid as a lump sum in the event of a member’s death.
Taxation of lump sum death benefits
Beneficiary |
Tax component | Maximum tax rate |
|---|---|---|
Dependant for |
Tax-free and taxable |
Tax-free |
| Non-tax dependant for tax purposes | Tax-free |
Tax-free |
Taxable (taxed element) |
15%3 | |
| Taxable (untaxed element4) | 30%3 |
2. Includes a spouse, former spouse, child under 18 or 18 and over and dependant, financial dependant person and interdependent person.
3. Plus Medicare levy, unless paid to deceased’s estate.
4. Broadly, an untaxed element arises where the lump sum death benefit includes a life insurance benefit and the fund has claimed a tax deduction for the insurance premiums.
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General advice and information only
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Tax disclaimer
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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