| 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) |
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.
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