The tax you pay depends on your age, how you access your super and whether your balance is in the accumulation or retirement phase.
How super is taxed before retirement
Before retirement, super is generally held in the accumulation phase. During this time, investment earnings are taxed at a concessional rate within the fund.
How super is taxed in retirement
Once you retire and start accessing your super, different retirement super tax rules apply. Super can usually be accessed as a pension-style income stream (account-based pension) or as a lump sum, and the tax treatment varies depending on age and structure. This transition is often considered when part of planning for retirement.
Tax on super after age 60
For most people aged 60 or over, withdrawals from a taxed super fund are generally tax-free. This means super tax is often not payable, and in retirement it may be minimal or nil once this age threshold is reached.
Tax on super if under 60
If you access super before age 60, tax may apply. Lump sum super tax and tax on income streams depend on the components of your balance and how benefits are withdrawn.
Does super tax in retirement affect the Age Pension?
Super withdrawals themselves are not taxed under the Age Pension, but they may affect eligibility through income and asset tests.
Tax depends on your age and how you access your super.
Not always. Tax treatment depends on age and balance components.
Super and tax rules can be complex, particularly when circumstances change. Personal financial advice can help clarify how the rules apply to individual situations.