FirstTech
FY26 Pocket Guide

  • Super lump sum Super income stream

    Any age

    Non-assessable non-exempt income: Tax free

    Non-assessable non-exempt income: Tax free 1

    1

    For capped defined benefit income streams – see Additional taxation of defined benefit income > $125,000 below for more information.

    For taxation of death benefits see the Super death benefits sections below.

  • Super lump sum Super income stream

    Aged 60 and above

    Non-assessable non-exempt income: Tax free

    Non-assessable non-exempt income: Tax free1

    Below age 60

    Assessable income: Maximum tax rate 20%2

    Assessable income: Taxed at MTR3

    1

    For capped defined benefit income streams – see Additional taxation of defined benefit income > $125,000 below for more information.

    2

    A tax offset applies, so the taxpayer pays no more than the lower of their marginal rate and the maximum tax rate shown.

    3

    Disability superannuation income streams receive a 15% tax offset (see Superannuation pension and annuity tax offset).

    For taxation of death benefits see the Super death benefits sections below.

    For all non-zero tax rates, Medicare levy may also apply.

  • Super lump sum Super income stream

    Aged 60 and above

    First $1.865m1 assessable income: Maximum tax rate 15%2

    Assessable income: Taxed at MTR less 10% tax offset3

    Balance over $1.865m1 assessable income: Taxed at 45%4

    Assessable income: Taxed at MTR less 10% tax offset3

    Below age 60

    First $1.865m1 assessable income: Maximum tax rate 30%2

    Assessable income: Taxed at MTR (no tax offset)

    Balance over $1.865m1 assessable income: Taxed at 45%4

    Assessable income: Taxed at MTR (no tax offset)

    1

    $1.865 million is the 2025–26 untaxed plan cap amount, per superannuation plan, indexed annually.

    2

    A tax offset applies, so the taxpayer pays no more than the lower of their marginal rate and the maximum tax rate shown, to the extent that the taxable component is within the relevant cap.

    3

    For capped defined benefit income streams – see Additional taxation of defined benefit income > $125,000 below for more information.

    4

    Rates of 45% shown above are specified flat rates rather than maximum rates.

    For taxation of death benefits see the Super death benefits sections below.

    For all non-zero tax rates, Medicare levy may also apply.

  • Defined benefit income is income paid from a capped defined benefit income stream. See FirstTech Capped Defined Benefit Income Streams Guide for more information on capped defined benefit income streams.

    The additional taxation in the table below only applies to defined benefit income in excess of $125,000 pa where:

    • the beneficiary is age 60 or over, or

    • the income stream is also a death benefit income stream, where the deceased member was age 60 or over at the time of death, and it is paid to a member under age 60.

    Component Standard tax concession applies if below $125,000 Additional tax treatment1

    Tax-free

    Non-assessable non-exempt (NANE)

    If (tax‑free + taxed element) exceeds $125,000 in an income year, then 50% x (tax free + taxed element) in excess of cap is included in assessable income

    Taxable (taxed element)

    Non-assessable non-exempt (NANE)

    Taxable (untaxed element)

    MTR less tax offset equal to 10% of the element untaxed

    If the total of all components exceeds $125,000 in an income year, then the 10% offset on the untaxed element is reduced (but not below zero).

    Reduction = 10% x (all components - $125,000)

    1

    For a full explanation of the taxation of capped defined benefit income streams please see the FirstTech Super guide.

  • Rollover of super benefit Tax treatment

    Taxable component (untaxed element)

    First $1.865m taxed at 15%1 (paid by receiving fund)
    Excess taxed at 47% (withheld by paying untaxed fund)

    Taxable component (taxed element)

    Not subject to tax when rolled over

    Tax-free component

    Not subject to tax when rolled over

    1

    Medicare levy does not apply.

    See Death benefit rollovers in the FirstTech Super guide for the special treatment of rollovers of super death benefit income streams.

  • Recipient Tax free component Taxable component

    Tax dependant

    Non-assessable non-exempt income: Tax free

    Non-assessable non-exempt income: Tax free

    Non-tax dependant

    Non-assessable non-exempt income: Tax free

    Assessable income: Maximum tax rate 15% (taxed element) and 30% (untaxed element)

    A dependant for tax purposes is a spouse, including a de facto or a former spouse, a child under the age of 18, a financial dependant or a person in an interdependency relationship.

    Where a super lump sum death benefit is paid to a deceased member’s estate, the tax treatment (to the estate) depends on the extent to which tax or non-tax dependants will (or could be expected to) benefit from the death benefit. See the FirstTech Super guide for further information.

    For all non-zero tax rates, Medicare levy may also apply.

  • Age of deceased (at time of death) Age of recipient Tax free component Taxable component

    60 and above

    Any age

    Non-assessable non-exempt income: Tax free

    Taxed element: Non-assessable non-exempt income: Tax free

    Untaxed element: Assessable income less 10% tax offset

    Below 60

    60 and above

    Non-assessable non-exempt income: Tax free

    Taxed element: Non-assessable non-exempt income: Tax free

    Untaxed element: Assessable income less 10% tax offset

    Below 60

    Non-assessable non-exempt income: Tax free

    Taxed element: Assessable income less 15% tax offset

    Untaxed element: Assessable income (no tax offset)

    For all assessable amounts, Medicare levy may also apply.

    Modified tax treatment may apply for capped defined benefit income streams – see Additional taxation of defined benefit income > $125,000 above for more information.