Hi, When I retire I know my superannuation earnings are tax free. If I have bank savings and earn interest on those savings, when do I have to pay tax on those savings, if the interest exceeds $18,500 or is it calculated along with my super earnings?.
Hi @Maxwell01
Not all superannuation earnings are tax-free. You can read more about tax on super benefits on our website.
To answer your question on tax on bank interest; you'll have to declare any interest you earn as income regardless of the amount. Most of the time this info will already be pre-filled in your tax return by the bank. Once the interest is declared, it's included in your taxable income and will be taxed as per the tax tables.
So if the only income you're earning is bank interest and it doesn't exceed $18,200, you won't be paying any tax. This might look different if you're also earning income from your super benefits and/or pension.
I meant $18,200.
Hi @Maxwell01
Not all superannuation earnings are tax-free. You can read more about tax on super benefits on our website.
To answer your question on tax on bank interest; you'll have to declare any interest you earn as income regardless of the amount. Most of the time this info will already be pre-filled in your tax return by the bank. Once the interest is declared, it's included in your taxable income and will be taxed as per the tax tables.
So if the only income you're earning is bank interest and it doesn't exceed $18,200, you won't be paying any tax. This might look different if you're also earning income from your super benefits and/or pension.
Thanks for the reply. Just to clarify my retirement will be at 60 and my super amount is under the 'taxable' amount and I am satisfying the requirement about ceasing employment. I am just trying to clarify if my super 'earnings' makes any difference to my interest earnings (money in bank). Thanks again.
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