Taxation

Providing your Tax File Number (TFN)

The provision of your Tax File Number for superannuation benefits is governed by the Australian Tax Office (ATO) can have an effect on your benefit. Read more.

Concessionally taxed benefits

On 29 June 1995, the tax of benefits paid to state super members changed from an untaxed basis to a taxed basis. In effect, this means that from 30 June 1995, the fund pays tax on employer contributions, the member receives a 15% tax offset on pensions and less tax is payable on lump sums.

Consequently, members' lump sum benefits were reduced by applying tax reduction factors. However, the net benefit either remained the same, or, as was the case for the majority of members, was increased.

As the fund did not commence paying tax on contributions until 1 July 1988, no reduction factors apply to entitlements prior to 1 July 1988.

The reduction factor applied to a member’s pension and/or lump sum, takes into account factors such as the amount of annual pension, your eligible service date, and your service history.

Pensioners are only eligible for the 15% tax offset if they are:

Age retired at 55 or older,
Permanent Disability retired, or
Receiving a Partner/Children's pension.

If you are a Prescribed Class member who retires prior to age 55, no pension reduction is applied. At age 55 the pension is adjusted for the change in tax status and a 15% tax offset is available.

For current details on the thresholds for concessional rates of taxation payable on lump sums, visit the Australian Taxation Office website at www.ato.gov.au