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  • Element untaxed in the fund of a super income stream

    The table below summarises the taxation of a super member income stream paid with an element untaxed in the fund.

    The tax-free component is not included. This component is not assessable and not exempt income in all cases.

    Table 15: Element untaxed – super income stream tax rates

    Age of recipient

    Income stream

    Aged 60 years or more

    Taxed at marginal rates, with a 10% tax offset

    At or above preservation age and under 60 years

    Taxed at marginal rates, with no tax offset

    Under preservation age

    Taxed at marginal rates, with no tax offset

    Medicare levy will apply if amounts are assessable.

    Note:

    • A temporary 2% levy applies for the 2014–15, 2015–16 and 2016–17 income years to individuals with a taxable income of more than $180,000 per year. The levy is payable at a rate of 2% of each dollar of a taxpayer’s taxable income over $180,000. This will cease to apply from 1 July 2017.
    • The Medicare levy rate is 2% from 1 July 2014 for the 2014–15 income year and later income years, and is applied in addition to the maximum rate of tax for each income component.
    • The Medicare levy rate is 1.5% up to and including 30 June 2014 and is applied in addition to the maximum rate of tax for each income component.
    • In the 2011–12 income year the flood levy may apply 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.
    Last modified: 22 Sep 2017QC 18123