| 1. |
All superannuation funds are required to calculate the tax free and taxable components of benefits paid to superannuation members.
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| 2. |
The tax free and taxable components affect how the member (or their dependant) is taxed when they withdraw benefits from their superannuation fund.
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| 3. |
Members under 60 who receive benefits from their superannuation fund are required to pay tax on the taxable component of their superannuation benefit.
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| 4. |
Generally, superannuation benefits paid to members aged 60 and over are tax free.
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| 5. |
A guide on how to calculate the taxable and tax free components of a members superannuation benefit has now been released by the Tax Office.
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| 6. |
The guide includes explanations and examples on the following areas:
- What are the components of a superannuation benefit;
- How to calculate the components of a superannuation benefit;
- Lump sum death benefits; and
- Transitional arrangements.
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| 7. |
The guide also includes the following online calculators:
- Superannuation crystallisation calculator - to work out the tax free component, including pre-July 1983 components.
- Superannuation benefit component calculator - to work out the tax free and taxable component of a superannuation benefit.
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| 8. |
Click here for a copy of the guide or visit the Tax Office website at www.ato.gov.au
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