Tax on super

Your own contributions from after-tax income are not taxed when they are paid into a fund. However, a 15% contributions tax will apply for self-employed investors who claim a tax deduction for these contributions.

Employer contributions are taxed at 15% when they are paid into a fund, including both the compulsory Superannuation Guarantee and any salary sacrifice contributions you make.

If your super fund does not have your Tax File Number (TFN) pre-tax contributions such as your employer contributions will incur 46.5% tax.

Visit www.btinfo.com.au/tfn for more information and to provide BT your TFN.

Income received by your super fund from investments is taxed at a rate of 15%. In some cases, the effective tax rate is less than 15% because the tax payable on fund earnings may be decreased by allowable deductions and tax credits.

Your final payout is the money you receive on retirement. It can be paid as a lump sum, or used to commence an annuity or pension.

New rules from 1 July 2007 mean that your super benefits from a taxed fund are tax-free for people over age 60, whether taken as a lump sum or as a pension. If cashing out, taxation will be applicable for those aged 55 to 59, but once an individual reaches age 60, there is no tax on exit.