Tax and your Pension
Superannuation is a tax-effective way of saving for retirement for many people.
When paid into your account from your before-tax wages, the tax rate on your superannuation is only 15%1. And if you retire and roll your super into a pension (a pension income stream), the income from your pension will be tax free.
If you want to retire and not rely on the Government’s Age Pension, you will need to plan ahead and make sure that you are making the most of your superannuation, including:
- Making sure your employer is paying all your superannuation guarantee payments
- Adding a little more to your account whenever you can
- Keeping all your super together in one account to reduce the amount of fees you are paying over time.
Get more information on tax
Read more detailed information on tax on your superannuation and pension or you can find about the Age Pension at the ATO website.
You may also consider getting financial advice for the best tax effective approach for you, for both today and saving for your future with your super and eventually your pension.
Download our fact sheet to learn more about tax and your AustralianSuper Pension
1 Your superannuation is subject to the following Government taxes:
* 15% on before-tax (concessional) contributions up to cap
* 46.5% on before-tax contributions in excess of cap
* Nil on after-tax (non-concessional) contributions up to cap
* 46.5% on after-tax contributions in excess of cap
* Up to 15% on investment earnings
Tax may also be applied on the withdrawal of your benefit in cash, depending on your age, the amount of your benefit and its different components.
