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
Your after-tax (non-concessional) contributions
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.