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Taxation of superannuation

Taxation of superannuation

Section: 11.1

11.1 Taxation of superannuation funds

How is the super fund taxed?

Superannuation is taxed at concessional levels compared to other types of investments. For most members aged 60 and over, a super fund is effectively tax-free.

Super funds must be complying (as defined by APRA) to be taxed at 15%.

Tax file number (TFN)

A fund must pay tax at the rate of 47% on no-TFN contributions income - that is contributions paid to the fund where a TFN has not been provided.

Tax on a non-complying fund

If a fund receives a notice from APRA stating that it is a non-complying fund, it is taxed at the rate of 45% . and denied the following concessions:

  • certain special CGT rules,
  • death and disablement insurance deductions
  • exemption of income related pensions deductions
  • ability to transfer contributions tax liability
  • refund of excess franking credits

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Wednesday, June 28, 2023