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Re: Superannuation Tax

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Newbie

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Hi, l am considering retiring later this year on a PSS super pension (under preservation age).  I was wondering how the tax free component (about $300) is taxed per fortnight.  Do I pay tax on that component normally and it is then refunded at the end of FY when I do my tax return OR is that tax free component not taxed each fortnight and I receive the full $300 in my fortnightly pension. Thanks!

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Devotee

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Hi @LKH65 

 

You can only access your super before your preservation age in limited circumstances (e.g. medical disability). Otherwise, this page on the ATO website can help you get started working out how tax will apply to your super benefits once you've reached your preservation age and met a condition of release.

 

If you do have to pay tax on your super benefits then your super fund will generally withhold tax from each pension payment and provide you with a payment summary at the end of the financial year to help you complete your tax return (when you'll be able to determine whether you're entitled to a refund on the tax withheld throughout the year).

 

JF

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

 

1 REPLY 1
Highlighted

Best answer

Devotee

Replies 0

Hi @LKH65 

 

You can only access your super before your preservation age in limited circumstances (e.g. medical disability). Otherwise, this page on the ATO website can help you get started working out how tax will apply to your super benefits once you've reached your preservation age and met a condition of release.

 

If you do have to pay tax on your super benefits then your super fund will generally withhold tax from each pension payment and provide you with a payment summary at the end of the financial year to help you complete your tax return (when you'll be able to determine whether you're entitled to a refund on the tax withheld throughout the year).

 

JF

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.