The industry fund for the people who care
The most important thing you need to know about your super is that once you have reached age 60, a lump sum benefit is tax free (if paid from a taxed source like Health Super). That makes super one of the most tax-effective methods of saving for retirement and your future.
Generally, most super is taxed during the accumulation (savings) phase at a rate of 15% at three points: on taxable contributions (entry into super), on investment returns (whilst in super) and on payment of benefits (exit from super).
Additional tax may apply, depending on Government limits on contributions and whether the fund holds your Tax File Number (TFN).
| Types of contributions | Tax rate |
| After–tax contributions to your account or a spouse account | 0% |
|---|---|
| Employer contributions (including contributions from your before-tax salary) | 15% |
| Before-tax contributions, for which a tax deduction is claimed | 15% |
The Government has set limits on the amount you can contribute to your super each year at a reduced tax rate. If your contributions exceed this limit, you may have to pay extra tax on the excess contributions.
While your super is in Health Super, we must pay tax on investment returns. The current rate of tax is 15% per year (but it may be less after rebates and credits are taken into account).
Any taxes are taken into account when investing super contributions and reporting investment returns to members.
The tax treatment of benefits paid as a lump sum (from a taxed source) is summarised in the following table:
| Age | Lump sum |
| Age 60+ | Tax free |
|---|---|
| Between preservation age & age 60 | Exempt component is tax free First $165,000* of taxable component is tax free Taxable component above $165,000* is taxed at 15% plus Medicare levy. |
| Less than preservation age | Exempt component is tax free Taxable component is taxed at 20% (plus Medicare levy). |
* Threshold applies 2011/2012 and is subject to change
As well as your age, the tax on your super benefit can also depend on:
For more information on tax and super refer to our Fact Sheet: Tax or visit the ATO website.
Health Super Financial Planning can provide you with access to a qualified financial planner at a reduced rate. To start your retirement planning and to consider your future years call Health Super Financial Planning on 1300 780 223.
Health Super Financial Services Pty Ltd ABN 37 096 452 318, AFSL 240019 trading as Health Super Financial Planning (HSFP) is wholly owned by the FSS Trustee Corporation ABN 11 118 202 672 AFSL 293340 Trustee of the First State Superannuation Scheme ABN 53 226 460 365.
The Trustee pays HSFP half of the annual 1% account-keeping fee collected on all Health Super Account Based Pensions. The Trustee also pays a variable monthly amount (calculated on a cost recovery basis) to HSFP to conduct member seminar programs. The Trustee is not a representative of HSFP and receives no commissions when making referrals to this service. To obtain further information about the services provided by HSFP, contact HSFP direct by telephoning 1300 780 223. Alternatively, visit HSFP’s website at hsfp.com.au