My husband is 75 and still working fulltime. We are wanting to take 90% of his Super out as a lumpsum payment and put it in a term deposit with our bank for 6 months. I know we will have to pay tax on the interest after the 6 months. Do we need to declare the initial lump sum payment at tax time? we are not quite sure how this works and we feel like we are paying alot of admin fee with our super fund , whereas the bank will charge zero account fees.....
The would be no tax payable on the withdrawal from the super fund unless the fund is one of a small number of untaxed funds relating to some Government employees.
If you are withdrawing a large sum, it might be best to seek financial advice before making the withdrawal. If the term deposit interest is subject to tax, the tax amount might be higher than the costs incurred by leaving the amount in super.
The would be no tax payable on the withdrawal from the super fund unless the fund is one of a small number of untaxed funds relating to some Government employees.
If you are withdrawing a large sum, it might be best to seek financial advice before making the withdrawal. If the term deposit interest is subject to tax, the tax amount might be higher than the costs incurred by leaving the amount in super.
Thanks very much for taking the time to reply @glenn4802.
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