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Tax on Lump Sums

The lump sum will be paid proportionately from the taxable and tax-free components of your superannuation benefits.

 
Tax Treatment
Components
Aged 55 to 59
Aged 60 or Over
Tax-free*
Tax Free
Tax Free
     
Taxable**
Amount up to the low rate cap amount is tax free and the balance taxed at 17%
Tax Free

 * The tax-free component consists of undeducted contributions, post 1994 invalidity, CGT exempt, pre-July 1983, and any after-tax contributions made from 1 July 2007. No tax is payable on income drawn from these components.
**The taxable component is the total benefit paid less the tax-free component of the benefit.