Super can be a tax-effective way to build up investments to fund your retirement. Understanding how these taxes work will help you maximise your super benefits.

Tax on contributions to a super fund

The rate of tax on super contributions depends on the type of contribution being made (i.e. before tax or after tax) and the amount of contributions made in the financial year.

Tax on earnings in super

Investment earnings in super are taxed at a maximum rate of 15%. The final tax rate may be less than 15% after tax-deductions, offsets and credits are applied. Investment tax is deducted from investment earnings before HESTA declares interest rates.

Tax on lump-sum payments from super

The amount of tax on payments from super can depend on your age, the amount of your payment, and the reason for your payment.

For more details, see How Super is Taxed.