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Australian superannuation lump sum payments

Tax rates that apply to superannuation lump sum payments

Last updated 28 June 2011

Table 1 sets out the tax rates that apply to superannuation lump sum payments. You may find this useful in completing items 8, M1 and M2.

Table 1

Tax rates applicable to the taxable components of superannuation lump sums
The Medicare levy is additional where applicable

 

Your age at the time of payment

Taxed element

Untaxed element

Amount

Tax rate

Amount

Tax rate

Death benefit paid to:

- dependant

Any age

Whole

Tax free

Whole

Tax free

- non-dependant

Any age

Whole

15%

Whole

30%

Superannuation lump sum (other than death benefit)

 

Under 55 years old

Whole

20%

Up to $1,155,000

30%

Over $1,155,000

45%

 

55 to 59 years old

Up to $160,000*

0%

Up to $160,000*

15%

Over $160,000*

15%

Over $160,000*
up to $1,155,000

30%

Over $1,155,000

45%

 

60 years old and older

Whole

Tax free

Up to $1,155,000

15%

Over $1,155,000

45%

* The low-rate cap could be less than $160,000 if, before July 2008, you received an eligible termination payment after your 55th birthday or you received a superannuation lump sum in a prior income year that counted towards your entitlement to a superannuation lump sum tax offset. For more information on how we work out the amount of your low-rate go to www.ato.gov.au and enter 'low rate cap on super lump sum benefits' in the 'Search for' box at the top of the page.

QC28061