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HMM13(Newbie)Newbie
15 Sept 2021

I am aged 64 and have already retired for few years. I have taken full lump sum withdrawal of my Super fund when it matured in Q1 2021. The total payment amount was about $71,000. The withdrawal value was shown as “unrestricted non-preserved component� in the withdrawal statement. The statement had not mentioned whether this amount is tax-free or taxable. I have emailed the fund provider and not getting any feedback.

I am wondering:

1) Do I have to pay tax on this lump sum payment? If yes, how much is taxable?

2) Do I have to include this payment in this year tax return? If yes, full amount or just part of it? Where should I enter this amount in the tax return?

Appreciate if someone can share their views please.

Thanks.

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912 views
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Bruce4Tax(Taxicorn)Taxicorn
15 Sept 2021

I am aged 64 and have already retired for few years. I have taken full lump sum withdrawal of my Super fund when it matured in Q1 2021. The total payment amount was about $71,000. The withdrawal value was shown as “unrestricted non-preserved component� in the withdrawal statement. The statement had not mentioned whether this amount is tax-free or taxable. I have emailed the fund provider and not getting any feedback.

I am wondering:

1) Do I have to pay tax on this lump sum payment? If yes, how much is taxable?

2) Do I have to include this payment in this year tax return? If yes, full amount or just part of it? Where should I enter this amount in the tax return?

If the fund is a normal "taxed" fund, then all benefits after age 60 are tax free and are not to be shown on tax returns.

Look are your last member statement - if the no "untaxed" components, then completely tax free.

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
15 Sept 2021

I am aged 64 and have already retired for few years. I have taken full lump sum withdrawal of my Super fund when it matured in Q1 2021. The total payment amount was about $71,000. The withdrawal value was shown as “unrestricted non-preserved component� in the withdrawal statement. The statement had not mentioned whether this amount is tax-free or taxable. I have emailed the fund provider and not getting any feedback.

I am wondering:

1) Do I have to pay tax on this lump sum payment? If yes, how much is taxable?

2) Do I have to include this payment in this year tax return? If yes, full amount or just part of it? Where should I enter this amount in the tax return?

If the fund is a normal "taxed" fund, then all benefits after age 60 are tax free and are not to be shown on tax returns.

Look are your last member statement - if the no "untaxed" components, then completely tax free.

SebReiter(Devotee)Devotee
16 Sept 2021

Hi HMM13

Bruce4Tax is right, for most people their super is tax free once they reach age 60, whether they take it out as a lump sum or as an income stream.

Untaxed amounts are the exception. These mostly apply to defined benefit funds, for older public servants, politicians, judges.

Also, in cases where there IS tax payable, your fund provider withholds the tax and sends it to the ATO. That is, fund members receive the after tax lump sum amount they're entitled to, and don't have any additional tax to pay.

I'm an ATO employee voluntarily providing my time here

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