Superannuation Payments Explained
In this superannuation guide we explain the various payments requirements and options available within the superannuation plan. There are several requirements for payments made from super.
Low rate cap amount
The application of the low rate threshold for super lump sum payments is capped. The low rate cap amount is reduced by any amount previously applied to the low rate threshold.
Table 1: Low rate cap amount| Income year | Amount of cap |
| 2016–17 | $195,000 |
| 2015–16 | $195,000 |
| 2014–15 | $185,000 |
| 2013–14 | $180,000 |
| 2012–13 | $175,000 |
| 2011–12 | $165,000 |
| 2010–11 | $160,000 |
| 2009–10 | $150,000 |
| 2008–09 | $145,000 |
| 2007–08 | $140,000 |
The low rate cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down). The new indexed amount is generally available each February.
Untaxed plan cap amount
The untaxed plan cap amount:
- Limits the concessional tax treatment of benefits that have not been subject to contributions tax in a super fund
- Applies to each super plan from which a person receives super lump sum member benefits
- Is used to calculate the excess untaxed rollover amount.
Table 2: Untaxed plan cap amount| Income year | Amount of cap |
| 2016–17 | $1,415,000 |
| 2015–16 | $1,395,000 |
| 2014–15 | $1,355,000 |
| 2013–14 | $1,315,000 |
| 2012–13 | $1,255,000 |
| 2011–12 | $1,205,000 |
| 2010–11 | $1,155,000 |
| 2009–10 | $1.1 million |
| 2008–09 | $1.045 million |
| 2007–08 | $1 million |
The untaxed plan cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down). The new indexed amount is generally available each February.
Minimum annual payments for super income streams
Once you start a pension or annuity on or after 1 July 2007, a minimum amount is required to be paid each year. There is no maximum amount other than the balance of your super account, unless it is a transition to retirement pension in which case the maximum amount is 10% of the account balance.
The minimum payment amounts have been halved for certain pensions and annuities for the 2008–09, 2009–10 and 2010–11 years and reduced by 25% for the 2011–12 and 2012–13 years. The reductions in these years apply only to account-based pensions and annuities (allocated pensions and annuities and market-linked pensions and annuities).
Table 3: Minimum percentage factor (indicative only) for each age group| Age | Minimum % withdrawal for the 2008–09, 2009–10 and 2010–11 income years for certain pensions and annuities | Minimum % withdrawal for the 2011–12 and 2012–13 income years for certain pensions and annuities | Minimum % withdrawal (in all other cases) |
| Under 65 | 2% | 3% | 4% |
| 65–74 | 2.5% | 3.75% | 5% |
| 75–79 | 3% | 4.5% | 6% |
| 80–84 | 3.5% | 5.25% | 7% |
| 85–89 | 4.5% | 6.75% | 9% |
| 90–94 | 5.5% | 8.25% | 11% |
| 95 or more | 7% | 10.5% | 14% |
Note: these withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), refer to the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.
Preservation age
Generally, you must reach preservation age before you can access your super. Use the following table to work out your preservation age.
Table 4: Preservation age| Date of birth | Preservation age |
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| From 1 July 1964 | 60 |
Table 5: Super lump sum tax table| Income component derived in the income year | Age when payment is received | Amount subject to tax | Maximum rate of tax (excluding Medicare levy) |
| Member benefit – taxable component – taxed element | Under preservation age | Whole amount | 20% |
| At or above preservation age and under 60 years | Up to the low rate cap amount | Nil |
| Above the low rate cap amount | 15% |
| Aged 60 years or more | Nil – amount is non-assessable, non-exempt income | N/A |
| Member benefit – taxable component – untaxed element | Under preservation age | Up to untaxed plan cap amount | 30% |
| Above untaxed plan cap amount | 45% |
| At or above preservation age and under 60 years | Up to the low rate cap amount | 15% |
| Above the low rate cap amount and up to the untaxed plan cap amount | 30% |
| Above the untaxed plan cap amount | 45% |
| Aged 60 years or more | Up to the untaxed plan cap amount | 15% |
| Above the untaxed plan cap amount | 45% |
| Death benefit lump sum benefit paid to non-dependants – taxable component – taxed element | Any | Whole amount | 15% |
| Death benefit lump sum benefit paid to non-dependants – taxable component – untaxed element | Any | Whole amount | 30% |
| Death benefit lump sum benefit paid to dependants – taxable component – taxed and untaxed elements | Any | None | Nil |
| Rollover super benefits – taxable component – taxed element | Any | Nil – amount is non-assessable, non-exempt income | N/A |
| Rollover super benefits – taxable component – untaxed element | Any | Up to the untaxed plan cap amount is non-assessable, non-exempt income | N/A |
| Above the untaxed plan cap amount | 45% |
| Super lump sum benefits less than $200 | Any | None | Nil |
| Super lump sum benefit (terminally ill recipient) | Any | None | Nil |
Note: A temporary 2% levy applies for the 2014–15, 2015–16 and 2016–17 income years to individuals with a taxable income of more than $180,000 per year. The levy is payable at a rate of 2% of each dollar of a taxpayer’s taxable income over $180,000. This will cease to apply from 1 July 2017.
The Medicare levy rate is 2% from 1 July 2014 for the 2014–15 income year and later income years and is applied in addition to the maximum rate of tax for each income component.
The Medicare levy rate is 1.5% up to and including 30 June 2014 and is applied in addition to the maximum rate of tax for each income component.
Note: In the 2011–12 income year the flood levy may apply where an individual's taxable income exceeds $50,000. The ATO have published information to help you work out if the flood levy applies to you.
Departing Australia superannuation payment (DASP)
This table covers DASP tax rates for lump sums and rollovers.
Note: Rollovers
If the ATO hold super money for a former temporary resident as temporary resident unclaimed super money, they have the option of rolling the money over to their super fund if they have subsequently returned to Australia as a permanent resident. This is the only time a rollover of DASP is an option. The rollover is still a DASP and will be taxed according to this table.
Table 6: DASP tax table| Component of DASP | Element of DASP | DASP tax rate | Can DASP be included in tax return? |
| Tax free | N/A | Nil | No |
| Taxable | Taxed element | 38% DASP tax Note: this includes the Temporary Budget Repair Levy of 3%. Applies to taxed elements whether taken as DASP lump sum or rollover. | No |
| Taxable | Untaxed element | 47% DASP tax Note: this includes the Temporary Budget Repair Levy of 2%. Applies to untaxed elements taken as DASP lump sums. Also to rollover amounts up to the untaxed rollover plan cap amount. Any part of a rollover that exceeds the untaxed rollover plan cap amount is subject to tax under the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 (currently 49%) rather than at DASP tax rates. | No |
Prior to 1 July 2014 when the Temporary Budget Repair Levy came into effect, the DASP tax rates were:
- Tax free component – NIL
- Taxable component taxed element – 35%
- Taxable component untaxed element – 45%