How your super is taxed
First things first – your tax file number
When it comes to super and tax, your tax file number (TFN) is key — if we don't have it, you could pay up to 47% tax (including the Medicare levy) on some contributions. You can supply your TFN when you join NGS. Your employer is also required to provide your TFN to your super fund when they make contributions to your account.^
Alternatively, you can let us know your TFN by completing our Providing your tax file number form at any time.
^ If you haven't provided your TFN to your employer since 1 July 2007, you may need to give them the authority to provide it to your super fund.
Tax on contributions
Before-tax contributions
Before-tax contributions are contributions made from income that hasn't been taxed yet. They’re also known as concessional contributions, and include employer contributions and salary sacrifice. If you claim a tax deduction on personal contributions, they will count as before-tax too. Before-tax contributions are taxed at 15% if you earn under $250,000 per year, and 30% if you earn more.
The need-to-knows
After-tax contributions
These are voluntary contributions you make from your take-home pay (ie money that's been taxed). They’re also known as non-concessional contributions, and include spouse contributions. As long as you keep within the after-tax contribution cap, this money won't be taxed within super.
The need-to-knows
Tax on earnings
Any earnings within an Accumulation or Transition to retirement account are taxed up to 15%. There's no tax on earnings in an Income account.
Tax is paid from investment earnings before the unit price is set.
Tax on withdrawals
Once you're over age 60, there's no tax payable on withdrawals from super. If you're under 60, the tax applicable depends on a few things, like your age, account type, and the type of withdrawal.
Your account balance consists of a taxable and a tax-free component. These components are calculated based on the kinds of contributions you make to super. You can view the breakdown of your components through Member Online.
Accumulation account: The taxable component is taxed at the lower of 20% (plus Medicare levy) or your marginal tax rate.
Income account: The taxable component is taxed at your marginal tax rate with no tax offset.
First home super saver (FHSS) payments
The taxable component is taxed at your marginal tax rate with a 30% tax offset. First home super saver payments can be paid to eligible Accumulation account members only, as determined by the Australian Tax Office (ATO).
Departing Australia super payments (DASP)
These are payments made to foreign nationals leaving Australia permanently. Applications are submitted to and assessed by the ATO. The taxable component of this payment will be taxed up to 65% and deducted before payment.
Tax on death benefits
If you die while a member of NGS, the money you have with us will be distributed depending on your death benefit nomination. In some cases, tax will be payable on this benefit payment.
Payment to a dependant3
Payment to a non-dependant4
Payment to an estate
Remember, death benefit nominations need to be made and maintained by you.
3 Dependants for tax purposes include your spouse (including de facto), your former spouse, children under age 18, or a person who is partially or wholly financially dependent on your at the date of your death.
4 Non-dependants for tax purposes generally include children over the age of 18 unless they’re still financially dependent on you at the date of your death.
