Tax and beneficiaries

Your Death benefit may consist of the balance of your super plus any additional component from an applicable insurance payout.

The tax applied to your death benefit when paid to a beneficiary depends on the circumstances of you and your beneficiary, as well as how the benefit is paid.

Death benefits paid as a lump-sum

 

Beneficiary is a Dependant for tax purposes

Beneficiary is not a Dependant

Tax-free

Your after-tax (non-concessional) contributions

Nil Nil

Taxable

Your before-tax (concessional) contributions and investment returns

Nil 15% + Medicare Levy

If your death benefit is paid to a dependant for tax purposes as a lump sum then the benefit is tax-free.

If it is paid to a non-dependant as a lump sum, tax is deducted from the taxable component of the benefit at a rate of 15% (plus Medicare levy).

A higher rate will apply if the death benefit recipient does not provide their TFN to Media Super.

If the taxable component of a lump sum death benefit contains an untaxed element, this will be taxed at 30% (plus Medicare levy).

 

If you have a pension with Media Super, your benefit may be paid to your beneficiary as a pension. Learn more about beneficiaries and pensions in our Retirement section.