Your RSA provider is subject to a rate of tax of 15% on the contributions made by employers, other tax deductible contributions and roll-overs or transfers of benefits from untaxed sources. In addition, interest credited to the RSA is taxable at 15%. In some cases the interest credited may be net of tax.
If you receive a pension or annuity from an RSA, the RSA's investment income which provides the pension or annuity is generally exempt from tax.
The superannuation contributions tax (surcharge) that applies to high income earners is also payable on contributions made to an RSA. From 1 July 2003, the superannuation and termination payments surcharge rates will be reduced from 15% to 10% over a period of 3 years. Accordingly, the maximum surcharge rates will be reduced to:
14.5 per cent in 2003-04
12.5 per cent in 2004-05
10 per cent in 2005-06 and each later financial year.
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