TAG :: Withdrawing Your Super Series 3 - What is your age at date of payment?

Industry News

Withdrawing Your Super Series 3 - What is your age at date of payment?

2013-02-11

I want to withdraw my superannuation. What do I need to consider?

Step 3: What is your age at date of payment?

Since 1 July 2007, all legal withdrawals from a taxed superannuation fund are tax free for people over the age of 60 (Untaxed funds attract an additional 15% tax, but these funds are only relevant to some public servants in older funds) .

(Source: Australian Taxation Office.2012 Apr 16.Examples of Untaxed Super Funds. http://www.ato.gov.au/individuals/content.aspx?doc=/content/00119853.htm&pc=001/002/064/007/007&mnu=0&mfp=&st=&cy=1)

If you are under 60 at the date of payment, you will most likely have to pay some tax and is dependent on other factors.

It is important to consider maximising the tax-free component of your superannuation balance to ensure that tax is minimised on death if your super goes to a non-tax dependant such as an adult child rather than say your speouse.

After age 60 or at retirement, there are more tax effective options which will allow you maximise your benefit so it is important that you speak with a qualified and licensed professional that can provide you with such advice.

Next we look at taking a lump sum benefit versus taking a penion.....

General Advice Warning: Liability limited by a scheme approved under Professional Standards Legislation.This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal taxation and financial advice prior to acting on this information. Opinions constitute our judgments at the time of issue and are subject to change. Neither, the Company or any of employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.

View all