Key factors that affect how your super payout is taxed

I'm under my preservation age and will be paid a pension or income stream (untaxed element)

How will the untaxed element of my super income stream be taxed?

If you:

• are below your preservation age, and
• receive a super income stream (such as a pension or annuity) that includes or consists entirely of an untaxed element

the untaxed element or amount is:

• assessable income
• subject to your marginal tax rates (plus Medicare levy).

You will pay tax at your marginal tax rate (plus Medicare levy).

This includes super income streams that started before 1 July 2007.

In 2011-12, the flood levy may apply to this payment, where an individual's taxable income exceeds $50,000. We have published information to help you work out if the flood levy applies to you.

Example 2

Simon is 51 and receives a super pension of $24,000 starting on 1 July 2011. The amount completely consists of an element untaxed in the fund - which means the whole pension is taxable and hasn't had tax paid on it yet.

Simon will include $24,000 in his assessable income and pay the following tax:
Untaxed element: $24,000	taxed at marginal rates (plus Medicare levy), with no tax offset

In 2011-12, the flood levy may apply to this payment, where an individual's taxable income exceeds $50,000. We have published information to help you work out if the flood levy applies to you.

How do I fill in my tax return?

Sections within How the untaxed element of your payout is taxed

• I'm under my preservation age and will receive a lump sum (untaxed element)
• I'm under my preservation age and will be paid a pension or income stream (untaxed element)
• I'm between my preservation age and 60 and will be paid a lump sum (untaxed element)
• I'm between my preservation age and 60 and will be paid a pension or income stream (untaxed element)
• I'm 60 or over and will be paid a lump sum (untaxed element)
• I'm 60 or over and will be paid a pension or income stream (untaxed element)