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Re: Taxation on lamp sum withdraw

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Hi,

I have retired from work 10 years ago and finally got to the preservation age.

I'd like to withdraw about 70$K from my superannuation. It will be my first withdraw and my question is how much tax will I have to pay?

(I checked with my super fund and all my funds are taxable).

Cheers,

Dave

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Devotee

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Hi DaveGIx

 

Here's a link to the page on ato.gov.au that talks about how super withdrawals are taxed.

 

You'll probably pay $0 in tax on the $70,000 withdrawal.

 

From preservation age (age 57 for anyone who turns 57 before 1 July this year) people can withdraw up to $205,000 of the taxable element before tax is payable. Once you reach age 60 all withdrawals will be tax free no matter how much you withdraw.

 

This assumes you're not in the minority of people who are members of a defined benefit fund. These funds are for state and federal public servants, judges, politicians, military personnel, university staff... possibly all are now closed to new members and most have been for many years. Members of these funds will pay some tax on super withdrawals if the money for the payment hasn't been paid into the super fund before it's paid to the member.

 

Seb

 

I'm an ATO employee voluntarily providing my time here

2 REPLIES 2
Highlighted

Best answer

Devotee

Replies 1

Hi DaveGIx

 

Here's a link to the page on ato.gov.au that talks about how super withdrawals are taxed.

 

You'll probably pay $0 in tax on the $70,000 withdrawal.

 

From preservation age (age 57 for anyone who turns 57 before 1 July this year) people can withdraw up to $205,000 of the taxable element before tax is payable. Once you reach age 60 all withdrawals will be tax free no matter how much you withdraw.

 

This assumes you're not in the minority of people who are members of a defined benefit fund. These funds are for state and federal public servants, judges, politicians, military personnel, university staff... possibly all are now closed to new members and most have been for many years. Members of these funds will pay some tax on super withdrawals if the money for the payment hasn't been paid into the super fund before it's paid to the member.

 

Seb

 

I'm an ATO employee voluntarily providing my time here

Newbie

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Thanks Seb. You help really appreciated.

Dave

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