Payments from super

Low rate cap amount

There is a limit set on the amount of taxable components (taxed and untaxed elements) of a super lump sum that can receive a lower (or nil) rate of tax. This is called the low rate cap amount. It applies to members that are older than their preservation age but younger than 60 years of age.

The low rate cap is a lifetime cap which is reduced by any amount previously applied to the low rate threshold.

From 1 July 2026, the low rate cap is $260,000.

Before 1 July 2026, the low rate cap amount was indexed each year in increments of $5,000 (rounded down) based on Average weekly ordinary times earnings (AWOTE).

Note: Following recent changes to the family law framework, from December 2024 the low rate cap amount no longer applies to family law arrangements.

Table 9: Low rate cap amount

Income year	Amount of cap
2025–26	$260,000
2024–25	$245,000
2023–24	$235,000
2022–23	$230,000
2021–22	$225,000
2020–21	$215,000
2019–20	$210,000
2018–19	$205,000
2017–18	$200,000
2016–17	$195,000
2015–16	$195,000
2014–15	$185,000
2013–14	$180,000
2012–13	$175,000
2011–12	$165,000
2010–11	$160,000
2009–10	$150,000
2008–09	$145,000
2007–08	$140,000

Untaxed plan cap amount

The untaxed plan cap amount limits the concessional tax treatment of benefits that include a part that has not been taxed within a super fund. It:

• applies to each super plan from which a person receives super lump sum member benefits
• is used to determine whether the excess untaxed roll-over amount arises.

The untaxed plan cap amount is indexed in increments of $5,000 (rounded down) based on AWOTE. The new indexed amount is generally available each February.

Table 10: Untaxed plan cap amount

Income year	Amount of cap
2026–27	$1,935,000
2025–26	$1,865,000
2024–25	$1,780,000
2023–24	$1,705,000
2022–23	$1,650,000
2021–22	$1,615,000
2020–21	$1,565,000
2019–20	$1,515,000
2018–19	$1,480,000
2017–18	$1,445,000
2016–17	$1,415,000
2015–16	$1,395,000
2014–15	$1,355,000
2013–14	$1,315,000
2012–13	$1,255,000
2011–12	$1,205,000
2010–11	$1,155,000
2009–10	$1,100,000
2008–09	$1,045,000
2007–08	$1,000,000

Minimum annual payments for super income streams

A minimum amount must be paid each year from pensions or annuities that started on or after 1 July 2007.

For certain pensions and annuities, the minimum payment amounts were temporarily reduced by:

• 50% for the 2008–09, 2009–10 and 2010–11 years
• 25% for the 2011–12 and 2012–13 years.

The minimum payment amount returned to normal in 2013–14.

The reductions in these years apply only to account-based pensions and annuities (allocated pensions and annuities and market-linked pensions and annuities).

Table 11: Minimum percentage factor for certain pensions and annuities (indicative only) for each age group

Age	2008–09 to 2010–11 income years (inclusive)	2011–12 to 2012–13 income years (inclusive)	2013–14 to 2018–19 income years (inclusive)	2019–20 to 2022–23 income years (inclusive)	2023–2024 onwards
Under 65	2.0%	3.0%	4.0%	2.0%	4.0%
65–74	2.5%	3.75%	5.0%	2.5%	5.0%
75–79	3.0%	4.5%	6.0%	3.0%	6.0%
80–84	3.5%	5.25%	7.0%	3.5%	7.0%
85–89	4.5%	6.75%	9.0%	4.5%	9.0%
90–94	5.5%	8.25%	11.0%	5.5%	11.0%
95 or more	7.0%	10.5%	14.0%	7.0%	14.0%

Note: These withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), refer to the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.

Temporarily reducing superannuation minimum payment amounts

The government reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% for the 2019–20, 2020–21, 2021–22 and 2022–23 financial years. This reduction has not been extended for the 2023–24 income year and onwards.

Superannuation and annuity providers calculate the minimum annual payment required as at 1 July each year, based on the account balance of the member or annuitant. The 50% reduction applied to this calculated minimum annual payment.

Note: Pension payments for 2019–20 year that were above the reduced minimum withdrawal rate and were taken before 25 March 2020, can't be re-categorised as a lump sum or commutation. This applies even if a valid minute or election from the member was in place before the government announced reduction.

Superannuation pensions and annuities that have already commenced

For pensions and annuities that commence part-way through a financial year, the temporary 50% reduction applies to the minimum annual payment that is calculated proportionally on the account balance on commencement day.

For more information on making contributions, see:

• Caps, limits and tax on super contributions
• Personal super contributions.

Preservation age

Generally, you must reach your preservation age and meet a condition of release before you can access your super. Use the following table to work out your preservation age.

Table 12: Preservation age

Date of birth	Preservation age
Before 1 July 1960	55
1 July 1960 – 30 June 1961	56
1 July 1961 – 30 June 1962	57
1 July 1962 – 30 June 1963	58
1 July 1963 – 30 June 1964	59
From 1 July 1964	60

Super lump sums

The table below shows the minimum tax rate that is applied to each component of a super lump sum you are paid, based on your age when you receive the payment.

Table 13: Super lump sum tax table

Income component derived in the income year	Age when payment is received	Amount subject to tax	Maximum rate of tax (excluding Medicare levy)
Member benefit – taxable component – taxed element	Under preservation age	Whole amount	20%
Member benefit – taxable component – taxed element	At or above preservation age and under 60 years	Up to the low rate cap amount	Nil
Member benefit – taxable component – taxed element	At or above preservation age and under 60 years	Above the low rate cap amount	15%
Member benefit – taxable component – taxed element	60 years or more	Nil – amount is non-assessable, non-exempt income	n/a
Member benefit – taxable component – untaxed element	Under preservation age	Up to untaxed plan cap amount	30%
Member benefit – taxable component – untaxed element	Under preservation age	Above untaxed plan cap amount	45%
Member benefit – taxable component – untaxed element	At or above preservation age and under 60 years	Up to the low rate cap amount	15%
Member benefit – taxable component – untaxed element	At or above preservation age and under 60 years	Above the low rate cap amount and up to the untaxed plan cap amount	30%
Member benefit – taxable component – untaxed element	At or above preservation age and under 60 years	Above the untaxed plan cap amount	45%
Member benefit – taxable component – untaxed element	60 years or more	Up to the untaxed plan cap amount	15%
Member benefit – taxable component – untaxed element	60 years or more	Above the untaxed plan cap amount	45%
Death benefit lump sum benefit paid to non-dependants – taxable component – taxed element	Any	Whole amount	15%
Death benefit lump sum benefit paid to non-dependants – taxable component – untaxed element	Any	Whole amount	30%
Death benefit lump sum benefit paid to dependants – taxable component – taxed and untaxed elements	Any	None	Nil
Rollover super benefits – taxable component – taxed element	Any	Nil – amount is non-assessable, non-exempt income	n/a
Rollover super benefits – taxable component – untaxed element	Any	Amounts under the untaxed plan cap amount are non-assessable, non-exempt income	n/a
Rollover super benefits – taxable component – untaxed element	Any	Above the untaxed plan cap amount	45%
Super lump sum benefits less than $200	Any	None	Nil
Super lump sum benefit (terminally ill recipient)	Any	None	Nil

Notes:

• A temporary budget repair levy of 2% applied 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 was payable at a rate of 2% of each dollar of a taxpayer’s taxable income over $180,000. The levy ceased to apply from 1 July 2017.
• The Medicare levy rate is 2% from 1 July 2014 onwards. It is applied in addition to the maximum rate of tax for each income component.
• The Medicare levy rate was 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 applied where an individual's taxable income exceeds $50,000. We published information to help you work out whether the flood levy applied to you.

Departing Australia superannuation payment

This table covers Departing Australia superannuation payment (DASP) tax rates for lump sums and rollovers.

If we hold temporary resident unclaimed super money for a former temporary resident, and they returned to Australia as a permanent resident, they have the option of rolling the money over to their super fund. This is the only time a rollover of DASP is an option. The rollover amount is still classified as a DASP and will be taxed at the rates shown in this table.

Table 14: DASP tax rates (from 1 July 2017)

Payment component	DASP ordinary tax rate	DASP Working holiday makers (WHM) tax rate
Tax-free component	Nil	Nil
Taxable component – taxed element Applies to taxed elements whether taken as a lump sum or rollover.	35%	65%
Taxable component – untaxed element Applies to both lump sums and roll-over amounts up to the untaxed roll-over plan cap amount. Any part of a rollover that exceeds the untaxed roll-over plan cap amount is subject to a 47% tax rate under the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 rather than at DASP tax rates.	45%	65%

The temporary budget repair levy applied in the 2014–15, 2015–16 and 2016–17 income years. For those years, the DASP tax rates were as follows:

• tax free component – Nil
• taxable component taxed element – 38%
• taxable component untaxed element – 47%.

During these years, any part of a rollover that exceeded the untaxed roll-over plan cap amount was subject to a 49% tax under the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 rather than at DASP tax rates.