Guide to superannuation for individuals

If your fund doesn't pay tax for you

If your fund is an untaxed super fund, your benefits have not been taxed in the fund. The taxable component of a super income stream from an untaxed fund is assessable income and taxed at your marginal rates plus Medicare levy, regardless of your age. If you're 60 years old or over when you receive a super income stream payment, the untaxed element is eligible for a 10% tax offset.

For more information, refer to: Key factors that affect how your super payout is taxed Understanding disability benefit payments.

Super lump sum death benefits

This type of benefit is tax free if it is paid to a person who is a dependant. This can be paid as an income stream or a lump sum.

Maximum tax rate for lump sums paid to non-dependants
Taxed element of the benefit	15% plus Medicare levy
Untaxed element of the benefit	30% plus Medicare levy

A variation to this calculation may occur in certain circumstances.

Death benefit income streams

The way tax applies to a death benefit paid as an income stream depends on several factors, such as:

• the age of the person receiving the benefit
• the age at which the deceased died
• whether the recipient is a dependant, including a child who is permanently disabled.

For more information, refer to Understanding a death benefit paid from a super fund.

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