FactSheet

How super is taxed

30 September 2022 The information in this document

This information is about Cbus. It doesn’t
forms part of the following Product
take into account your specific needs, so
you should look at your own financial position, Disclosure Statements:
objectives and requirements before making
any financial decisions. Read the relevant
■ Cbus Industry Super Product
Cbus Product Disclosure Statement to decide Disclosure Statement issued
whether Cbus is right for you. Call us on 30 September 2022
1300 361 784 or visit cbussuper.com.au for
a copy. Also read the relevant Target Market ■ Cbus Sole Trader Super Product
Determination at cbussuper.com.au/tmd. Disclosure Statement issued
Issued by United Super Pty Ltd 30 September 2022
ABN 46 006 261 623 AFSL 233792 as Trustee
for Cbus Super Fund ABN 75 493 363 262
■ Cbus Personal Super Product
offering Cbus and Media Super products. Disclosure Statement issued
Use of ‘us’, ‘we’, ‘our’ or ‘the Trustee’ is 30 September 2022
a reference to United Super Pty Ltd. Use
of ‘Fund’ refers to Cbus Super Fund. ■ Cbus Corporate Super Product
MySuper authorisation 75 493 363 262 473. Disclosure Statement issued
1233.5 09-22 ISS12 30 September 2022
 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
less tax from super than from other types of investment or Before-tax 15%* tax on amounts up to $27,500† a year.
(concessional)
savings.
After-tax No tax on amounts up to $110,000† a year.
Super is taxed at three different stages (non-
concessional)
If you’re under age 75, you may be able to
contribute $330,000 in any three-year period.
Contributions more than this limit may be
1. When super goes into your account taxed at the highest marginal rate (currently 45%).†

2. From investment earnings before they are *

An additional 15% tax is charged on some or all of these contributions if your
annual income (including before-tax contributions) is over $250,000 or we don’t
added to your account hold your TFN.
†
Limits for the 2022/23 financial year. Your total super balance also affects
3. When you withdraw money from your account these limits (see below).

1. When super goes into your account Amounts above the caps generally trigger additional tax. In
The money you put into super can be paid in two main ways – some circumstances this can be taken out of your account
before you pay tax on it and after tax is deducted from it. in the fund (go to ato.gov.au for more information on tax).
Before-tax contributions above the cap that are not withdrawn
Before tax (also called concessional contributions) will count towards your after-tax contributions cap.
These include: If you have more than one super account, contributions made
■ employer contributions (including compulsory super to all your accounts (across all funds) in a financial year are
payments) added together and count towards the contribution caps.
■ salary sacrifice contributions
■ personal contributions you have claimed a tax deduction for.
Keep track of your total super balance
After tax (also called non-concessional contributions)
These are personal contributions you make (e.g. from your
after-tax salary) that you have not claimed a tax deduction for. Your total super balance (across all super accounts you hold
including total Transfer Balance‡) can impact your eligibility to:
■ carry forward unused amounts in your before-tax
Why you should give Cbus your (concessional) contributions cap
tax file number (TFN) ■ bring forward future after-tax (non-concessional)
contribution caps
We are authorised to collect, use and disclose your TFN
under the Superannuation Industry (Supervision) Act 1993. If ■ receive the Government co-contribution
you transfer your super to another superannuation provider, ■ receive the tax offset for spouse contributions.
we will disclose your TFN unless you tell us not to in writing.
Once your total super balance reaches $1.7 million§
It is not an offence to withhold giving us your TFN. However, restrictions will apply, such as you won’t be able to make
if you give us your TFN you will have the following advantages: any non-concessional personal contributions to super.
■ we will be able to accept all permitted types of ‡
This is the amount(s) transferred to commence an income stream. Any
contributions to your account amounts above your Transfer Balance Cap must be kept in your super
account and cannot be transferred to an income stream.
■ other than the tax that may ordinarily apply, you will not §
Limit for the 2022/23 financial year. Some amounts are excluded from
pay more tax than you need to the calculation of the balance (e.g. personal injury compensation amounts
■ it will make it much easier to find different super that qualify as structured settlements). Visit the Australian Taxation Office
accounts in your name so that you receive all your super website at ato.gov.au or contact us for more information.
benefits when you retire.
You should read the important information at
cbussuper.com.au/tfn before you provide your TFN.

It’s easy to provide your TFN. Simply include your TFN on

your join form, update your TFN via your online account or call
us on 1300 361 784 from 8am to 8pm Monday to Friday (AEST).

How super is taxed | 2

 FactSheet How super is taxed

Tax on super contributions depends on your 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. From investment earnings before they are added to Super withdrawals and tax at a glance
your account
Investment earnings on your super account are taxed at up to Super lump-sum payments Maximum rate of tax‡
15%. This tax is deducted from the crediting rate that applies Retirement Aged 60 and above 0%
to your super before the earnings are added to your account. payments
Preservation age to 0% up to (indexed) low rate
Because many other investments (such as property) are age 59 cap of $230,000. Amount
taxed at a higher rate, super compares well as a long-term above low rate cap is subject
savings option. to 15% tax.
Cash Below preservation 20% of the taxable
3. When you withdraw money from your account withdrawals age component.
The amount of tax on payments from super can depend on
Super lump sum 0%
your age, the amount of your payment and the reason for your benefits less than $200
payment (see table opposite). Contact us on 1300 361 784
Departing Australia 65%
if you’re unsure. Superannuation
If you’re under age 60, tax is deducted from super benefit Payments – Working
Holiday visas
withdrawals before you receive them. If you’re aged 60 or over,
withdrawals are tax free. Departing Australia 35% on the taxed
Superannuation component and at the
Your super benefit is divided into two components. (The following Payments – Other highest marginal rate
table assumes your tax file number has been provided.) visas (currently 45%) on the
untaxed component.
No additional amount is
Component Tax if you’re under 60
required to be withheld for
Tax free No tax payable. 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 tax dependant 0%
first $230,000† is tax free and the balance is benefit
taxed at 15%.* Taxed element paid to 15%
payments
a non-tax dependant
*
Plus the Medicare Levy and any other applicable Government Levy.
Untaxed element paid 30%
†
The $230,000 low rate cap amount is the total of all the taxable payments you to a non-tax dependant
receive or are paid from preservation age until 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 $1.615 million)
and at the highest marginal
rate (currently 45%) (over
$1.615 million)
‡
Tax rates for the 2022/23 financial year.

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

Please note: The $230,000 low rate cap is indexed annually

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

How super is taxed | 3

 FactSheet How super is taxed

Claiming a tax deduction on personal Once we’ve received and accepted your notice, we’ll send you
written confirmation that we’ve accepted your tax deduction.
contributions You must have received this confirmation from Cbus before you
Who can claim? can claim a tax deduction. We recommend you give a copy of the
confirmation letter to your tax adviser or accountant.
To be eligible for a tax deduction for personal contributions to
Cbus you need to meet a number of conditions. This includes We can refuse to accept a notice in certain circumstances (e.g. if
whether you: your account balance does not have enough money to meet any
tax payable or you have left the fund).
■ have made a personal contribution during the financial year
■ meet the age requirements (see Age requirements below) When you claim a tax deduction for your personal contributions,
they may not be eligible for a government co-contribution.
■ complete our Claim a tax deduction for personal contributions
to super form available from cbussuper.com.au/forms and Visit ato.gov.au for more information about eligibility and
send it to us claiming a tax deduction.
■ have received confirmation from Cbus that we’ve
accepted your form. Tax on income streams
The personal contributions which you claim as a tax deduction If you’re transferring into an income stream, read about the tax
are treated as concessional contributions. When deciding that applies in the Cbus Super Income Stream Product Disclosure
whether to claim a deduction for super contributions, you Statement. Visit cbussuper.com.au/sispds for a copy.
should consider the impacts which may arise from this.
Age requirements This information has been provided as a guide only, and is
■ you must be over 18 and under 75 years old not a substitute for professional taxation advice. As the tax
■ If you are over 67 and under 75 years old you will be able to rules in relation to super can be complex, we suggest that
make or receive personal contributions and salary sacrificed you seek professional advice before making any decisions.
contributions without meeting the work test, subject to the For questions about tax on super, we strongly advise you to
existing contribution caps. You will still be required to meet contact the ATO on 13 10 20.
the work test or the work test exemption criteria to claim a
deduction for personal superannuation contributions.
Visit ato.gov.au to learn more. 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 1300 361 784 8am to 8pm (AEST/AEDT)
month of your 75th birthday 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]
cbussuper.com.au
Notify Cbus of your deduction
Go online for easy access to super info
You must send your completed Claim a tax deduction for personal The Cbus website makes it easy to get all the information
contributions to super form to us before the earlier of: you need about super, when you need it.
■ withdrawing or transferring money from your Cbus account Log in to chat to us online.
or lodging a contribution splitting application, and
■ the day you lodge your tax return with the ATO for the Cbus, Locked Bag 5056
financial year in which the contribution was made, and PARRAMATTA NSW 2124
■ the end of the financial year, after the financial year the
contributions were made.
Visit Cbus in person in Adelaide, Brisbane,
This must be done before you withdraw or rollover your super Melbourne, Perth and Sydney.
to another fund or to a super income stream account. Details: cbussuper.com.au/contact

You can also complete the form if you have already lodged a Arrange for a Cbus Coordinator to visit your workplace
notice with Cbus and want to reduce the amount you’ve applied Cbus has a team of Coordinators right around Australia who
for, including reducing this to zero. If you want to increase the are available to visit your workplace. They can help you and
claim amount you need to lodge a separate notice to claim the your mates understand more about your super and Cbus.
additional amount. Details: cbussuper.com.au/contact

How super is taxed | 4