Tax when super is paid as cash

If you are aged 60 years or over you can access your entire super tax-free.

If you have reached your preservation age but are under 60, you can still access the taxable component of your super tax-free up to the low-rate threshold. Amounts over the low-rate threshold will be taxed according to the table below.

If you are below your preservation age and are eligible to access your super, you will also be taxed according to the table below.

# including Medicare levy
* higher rates of tax apply to an untaxed rollover amount. Media Super would deduct tax on receipt of a rollover containing an untaxed amount, and the remainder would then form part of the standard taxable component.

Note: If you haven't advised Media Super of your tax file number, higher tax rates may apply. 

If you receive a TPD benefit and are aged 60 years or over, you can access your entire super tax-free.

If you are under 60 and receive a TPD benefit, a portion of the taxable component of your super will be recalculated to form part of your tax-free component. Generally, the tax-free component is increased to reflect the period where you could have expected to be gainfully employed if the disability had not occurred. This is calculated based on your age, length of service and the amount of your benefit. Your adjusted tax-free and taxable components will be taxed according to the rates in the table above.

Any eligible death cover benefit payment may be taxable, depending on your beneficiary. Similarly, lump-sum payment of your super may attract tax for certain beneficiaries.

A beneficiary is the person or persons whom you wish to receive your super or death cover benefit in the event of your death.

If your death cover benefit or super is paid to a dependant for tax purposes, then the benefit is tax-free. The definition of ‘dependant’ for tax purposes is:

• Spouse or former spouse
• Child under 18
• Financial dependent
• Interdependent

If a death cover benefit or super is paid to a non-dependant, tax is deducted from the taxable component of the benefit. The applicable rate is 16.5% (including Medicare levy). A higher rate will apply if the benefit recipient does not supply their tax file number to Media Super.

For more information about dependants, see Estate Planning. 

For assistance in accessing your super, contact us. 

Members who are eligible temporary residents can apply for a Departing Australia Superannuation Payment (DASP). The tax applied to a DASP differs from other benefit payments.

For more information, see Tax for eligible temporary residents.