When tax is payable

The tax components of superannuation benefits must be paid in proportion to the components of the member’s superannuation interest in the fund. In the case of a: 

  • Lump sum or rollover: the components will generally be determined in the same proportion as the components of the member’s superannuation interest in the fund at the time of payment.
  • Income stream: the tax-free and taxable components of the superannuation interest are calculated at the time the pension commenced (or at the time of a trigger event in the case of a pension that commenced before 1 July 2007). All pension and lump sum payments are paid in these proportions.

Why was tax charged before a withdrawal?

The amount could include any outstanding tax that hasn’t been previously deducted due to an insufficient cash balance. Generally, it represents the Capital Gains Tax (CGT) on investments that have been sold during the current and previous financial year. 

Previous years will only be included if the previous year’s annual tax calculation is yet to be finalised.

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