Superannuation is a concessionally taxed retirement savings plan. Federal governments over the past twenty years have been encouraging people to save for their own retirement by offering concessional tax rates for super and related investment earnings.
In order to make your savings as tax effective as possible, it’s important to understand the various tax rules that apply to super.
Media Super collects applicable taxes from your super account and pays them to the Australian Taxation Office (ATO) on your behalf.
Taxes apply to your concessional and non-concessional contributions. Higher taxes apply to contributions made over the relevant contributions caps.
Investment earnings in the Fund are taxed up to a maximum of 15%. This tax is deducted from Media Super's earnings and remitted to the ATO before earning rates are declared and allocated to your account. Earnings may be positive or negative.
Taxes apply when super is withdrawn from the fund as a lump sum or by taking out a Media Super pension. The taxes that apply will depend on your age, your circumstances and the condition of release under which you are able to access your super.