Tax and your Super

Do you pay tax on your Super?

Yes, tax is taken from your super but concessional tax treatment applies when the money is contributed, on investment earnings in CONNECT, and at the time you receive your benefit.

When you receive your benefit, the amount of the tax will vary depending on the balance of your account payable when you leave CONNECT, your age, and the type of benefit you receive. For instance, whether it is a benefit due to retirement, due to withdrawing from CONNECT for other reasons or due to a death or disability claim.

When you claim your benefit from CONNECT it's important you have provided your Tax File Number. Failure to do so will result in your benefit being taxed at the highest marginal rate.

CURRENTLY THE FIRST $135,590 IS TAX FREE

When you retire and claim your super benefit, a large part of your benefit will be tax free. This amount is indexed, so it increases each year. For the 2006/2007 year the tax free amount is $135,590.

From 1 July 2007 you will be able to take your entire super payout tax free, provided you have reached age 60.