FactSheet

How super is taxed

The information in this document

forms part of the following Product
Disclosure Statements:
1 February 2020 ■■ Cbus Industry Super Product
This information is about Cbus. It doesn’t Disclosure Statement issued
take into account your specific needs, so you 1 February 2020
should look at your own financial position,
objectives and requirements before making ■■ Cbus Sole Trader Super Product
any financial decisions. Read the relevant Disclosure Statement issued
Cbus Product Disclosure Statement to decide 1 February 2020
whether Cbus is right for you. Call Cbus on
1300 361 784 or visit cbussuper.com.au ■■ Cbus Personal Super Product
for a copy. Disclosure Statement issued
Cbus’ Trustee: United Super Pty Ltd 1 February 2020
ABN 46 006 261 623 AFSL 233792
Cbus ABN 75 493 363 262 ■■ Cbus Corporate Super Product
MySuper authorisation 75 493 363 262 473. Disclosure Statement issued
1233.5 02-20 ISS5 1 February 2020
 FactSheet How super is taxed

Super can be a tax-effective way to save Tax rates on before and after-tax contributions
for your retirement Type of Tax and contribution caps
contribution
To help you save for tomorrow, the Government usually takes
Before-tax 15%* tax on amounts up to $25,000# a year.
less tax from super than from other types of investment or
(concessional)
savings.
After-tax 0% tax on amounts up to $100,000# a year. If
(non- you’re under age 65, you may be able to contribute
Super is taxed at three different stages concessional) $300,000 in any three-year period#.
* An additional 15% tax is charged on some or all of these contributions if
1. When super goes into your account your annual income (including before-tax contributions) is over $250,000
or we don’t hold your TFN.
2. From investment earnings before they are #L  imits for the 2019/20 financial year. Your total super balance also affects
these limits (see below).
added to your account

3. When you withdraw money from your account Amounts above the caps trigger additional tax. In some
circumstances this can be taken out of your account in the
fund or you can obtain a refund on the excess contributions
1. When super goes into your account (go to ato.gov.au for more information on tax). Before-tax
The money you put into super can be paid in two main ways – contributions above the cap that are not withdrawn will count
before you pay tax on it and after tax is deducted from it. towards your after-tax contributions cap.
Before tax (also called concessional contributions) If you have more than one fund, contributions made to all your
These include: funds in a financial year are added together and count towards
the contribution caps.
■■ employer contributions (including compulsory super
payments)
■■ salary sacrifice contributions
Keep track of your total super balance
■■ personal contributions you have claimed a tax deduction for.

After tax (also called non-concessional contributions) Your total super balance (across all super accounts you hold
These are personal contributions you make (e.g. from your including total Transfer Balance†) can impact your eligibility to:
after-tax salary) that you have not claimed a tax deduction for.
■■ carry forward unused amounts in your before-tax
(concessional) contributions cap
Why you should give Cbus your ■■ bring forward future after-tax (non-concessional)
tax file number (TFN) contribution caps
■■ receive the Government co-contribution
We are authorised to collect, use and disclose your TFN ■■ receive the tax offset for spouse contributions.
under the Superannuation Industry (Supervision) Act 1993. If
you transfer your super to another superannuation provider, Once your total super balance reaches $1.6 million*
we will disclose your TFN unless you tell us not to in writing. restrictions will apply, such as you will no longer be eligible
It is not an offence to withhold giving us your TFN. However, for the government co-contribution.
if you give us your TFN you will have the following advantages: †
This is the amount(s) transferred to commence an income stream.
■■ we will be able to accept all permitted types of *L
 imit for the 2019/20 financial year. Some amounts are excluded from the
contributions to your account calculation of the balance (e.g. personal injury compensation amounts
that qualify as structured settlements). Contact us for more information,
■■ other than the tax that may ordinarily apply, you will not or visit the Australian Taxation Office website at ato.gov.au.
pay more tax than you need to
■■ it will make it much easier to find different super
accounts in your name so that you receive all your super
benefits when you retire.
You should read the important information at
cbussuper.com.au/tfn before you provide your TFN.

How super is taxed | 2

 FactSheet How super is taxed

Tax on super contributions depends on your age, income and the amount
and type of contribution. Tax is deducted from your account after the
contribution is received and paid to the Australian Taxation Office (ATO).

2. When investment earnings are added to your account Super withdrawals and tax at a glance
Investment earnings on your Cbus account are taxed at up to
15%. This tax is deducted from the crediting rate that applies Super lump-sum payments Maximum rate of tax
to your super, before the earnings are added to your account.
Retirement Aged 60 and above 0%
Because many other investments (such as property) are payments
taxed at a higher rate, super compares well as a long-term Preservation age to 0% up to (indexed) low rate
age 59 cap of $210,000. Amount
savings option. above low rate cap is subject
3. When you withdraw money from your account to 15% tax.

The amount of tax on payments from super can depend on Cash Below preservation 20% of the taxable
age component.
your age, the amount of your payment and the reason for your
payment (see table opposite). Contact us on 1300 361 784 Super lump sum 0%
if you’re unsure. benefits less than
$200
If you’re under age 60, tax is deducted from super benefit Departing Australia 65%
withdrawals before you receive them. If you’re aged 60 or over, Superannuation
withdrawals are tax free. Payments – Working
Holiday visas
Your super benefit is divided into two components. (The following
Departing Australia 35% on the taxed component
table assumes your tax file number has been provided.) Superannuation and 45% on the untaxed
Payments – Other component. No additional
Component Tax if you’re under 60 visas amount is required to be
Tax free No tax payable. withheld for the Medicare levy.

Taxable If you’re under your preservation age, taxed Terminal illness 0%

at 20%.^ payments
If you’ve reached your preservation age, the Death Paid to a dependant 0%
first $210,000# is tax-free and the balance is benefit
payments Taxed element paid 15%
taxed at 15%.^
to a non-dependant
^ Plus the Medicare Levy and any other applicable Government Levy.
Untaxed element paid 30%
The $210,000 low rate cap amount is the total of all the taxable payments you
#
to a non-dependant
receive or are paid before you reach age 60 (even if they’re received in different
financial years). Rollover Generally there is no tax payable if you transfer money
between from one super fund to another if both funds are based
super funds in Australia. The only exception is where the amount
transferred contains an untaxed element, which may
occur when transferring benefits from certain public
sector super funds.
Taxed element 0%
Untaxed element 15% (up to $1.515 million)
45% (over $1.515 million)

Please note: The $210,000 low rate cap is indexed annually

in line with Average Weekly Ordinary Time Earnings ‘AWOTE’
in increments of $5,000.

All rates shown in this table exclude the Medicare Levy and other
Government Levy.

How super is taxed | 3

 FactSheet How super is taxed

Claiming a tax deduction on personal We can refuse to accept a notice in certain circumstances (e.g. if
your account balance does not have enough money to meet any
contributions tax payable or you have left the fund).
Who can claim? When you claim a tax deduction for your personal contributions,
To be eligible for a tax deduction for personal contributions to they are no longer eligible for a government co-contribution.
Cbus you need to meet a number of conditions. This includes For more information about eligibility and claiming a tax
whether you: deduction visit ato.gov.au.
■■ have made a personal contribution during the financial year
■■ meet the age requirements (see Age requirements below) Tax on income streams
■■ complete the ATO’s Deduction for personal super
contributions (NAT 71121) form available from ato.gov.au If you’re transferring into an income stream, read about the tax
and send it to Cbus that applies in the Cbus Super Income Stream Product Disclosure
Statement at cbussuper.com.au/sispds.
■■ have received confirmation from Cbus that we’ve
accepted your form.
This information has been provided as a guide only, and is
The personal contributions which you claim as a tax deduction not a substitute for professional taxation advice. As the tax
are treated as concessional contributions. When deciding rules in relation to super can be complex, we suggest that
whether to claim a deduction for super contributions, you you seek professional advice before making any decisions.
should consider the superannuation impacts which may arise For questions about tax on super, we strongly advise you to
from this. contact the ATO on 13 10 20.
Age requirements
■■ you must be aged between 18 and 75 years
Cbus is here to help:
■■ if you turn 75 during the financial year, your personal
contribution can only be accepted up to 28 days after the
month of your 75th birthday 1300 361 784 8am to 8pm (AEST/AEDT)
Monday to Friday, closed on national public holidays
■■ if you are under age 18 at the end of the financial year, you
We have a team of advisers who can talk with you about any
may still be eligible for a tax deduction if you have earned
aspect of your super.
income as an employee or business operator during the
period in which you claim the deduction.
[email protected]
Notify Cbus of your deduction cbussuper.com.au
Go online for easy access to super info
You must send your completed NAT 71121 form before the
The Cbus website makes it easy to get all the information you
earlier of: need about super, when you need it.
■■ withdrawing or transferring money from your Cbus account
or lodging a contribution splitting application, and
Cbus, Locked Bag 5056
■■ the day you lodge your tax return with the ATO for the PARRAMATTA NSW 2124
financial year in which the contribution was made, and
■■ the end of the financial year, after the financial year the
contributions were made. Visit Cbus in person in Adelaide, Brisbane,
Melbourne, Perth and Sydney.
You can also complete the form if you have already lodged a Details: cbussuper.com.au/contact
notice with Cbus and want to reduce the amount you’ve applied
for, including reducing this to zero. If you want to increase the Arrange for a Cbus Coordinator to visit your workplace
claim amount you need to lodge a separate notice to claim the Cbus has a team of Coordinators right around Australia who
additional amount. are available to visit your workplace. They can help you and
your mates understand more about your super and Cbus.
Once we’ve received and accepted your notice, we’ll send you
written confirmation that we’ve accepted your tax deduction.
You must have received this confirmation from Cbus before you
can claim a tax deduction. We recommend you give a copy of the
confirmation letter to your tax adviser or accountant.

How super is taxed | 4