Your Super and Tax – Frequently Asked Questions The good news is superannuation enjoys low rates of tax… Why do I need to provide my Tax File Number (TFN)? It's important to give us your TFN. If we don’t have it, you could end up paying more tax on your super than is necessary. Provide your TFN either via Member Online or by filling in our TFN notification form. Also, if we do not have your TFN we will be unable to accept some of your voluntary contributions and there could be difficulties in finding, combining or paying your superannuation (including the Government Co-contribution).

How does tax affect my before tax (employer and salary sacrifice) contributions?

A tax of 15% applies to the contributions (both employer and salary sacrifice contributions) your employer pays into your Catholic Super account up to a cap of $25,000 per year if you are under 50 years of age.

From 1 July 2009 to 1 July 2012, for those aged 50 or over on the last day of the financial year, contributions are capped at $50,000 for that year. Read more on salary sacrifice.

Contributions that exceed the cap will be subject to the contribution tax of 15% as well as being individually assessed for a further 31.5%. Refer to the Australian Taxation Office (ATO).

What about after tax (personal and spouse) contributions?

No tax is payable on after tax contributions as you have already paid tax on these amounts.

Personal contributions are capped at $150,000 per year although you can ‘bring forward’ three years of contributions and make up to $450,000 of personal contributions in one year.

Contributions over this cap will be taxed at the highest marginal tax rate. Read more about after-tax contributions.

Is my money taxed when I withdraw?

You may have to pay tax when you draw money from your super. The amount paid will depend on your personal circumstances, including your age, how long you have been in a superannuation fund and how your super benefit is paid. You:

• Pay no tax if you are aged 60 and above - this includes both lump sum withdrawals and pension payments.
• Pay no tax prior to age 60 on the part of your super that consists of tax-free contributions.
• May pay tax if you withdraw funds from superannuation prior to age 60 - you can withdraw up to $165,000 of your taxable component without paying any tax. Any withdrawal above this amount may be subject to tax at 16.5%.
• Pay tax at the top marginal tax rate on your benefit payments if your TFN has not been provided to us
• If you commence a pension before age 60, there may also be taxation implications depending on the amount of pension you take.
• If you're younger than the preservation age you pay 20% plus Medicare levy on your entire benefit less the tax-free component.

We recommend our members seek professional advice before making a decision to withdraw funds from superannuation. The following table summarises how the taxable component will be taxed:

Under preservation age	Preservation age to 59	60 and over
20% plus Medicare levy less the tax-free component if any	First $150,000 (2009-10 figure) is tax free. The balance is taxed at 15% plus the Medicare levy	Tax free

Is there tax on my investment earnings?

Investment earnings in super funds are taxed at a maximum rate of 15%, with capital gains taxed at a discounted rate of 10%. Tax is paid by Catholic Super directly from earnings and is included in the calculation of unit prices. It is not deducted from members' accounts.

I’m a temporary resident. Is there a cash payment when I leave Australia?

If you held a temporary residency visa, but not an Investor Retirement (class 405) or Retirement (class 410) visa, and depart Australia permanently, higher tax rates will apply to your benefit. Contact the ATO for details on 13 10 20.

Is there tax on death benefits?

Death benefits paid to a dependant are not taxable. The taxable component of a lump sum paid to a non-dependant is taxed at 15% plus Medicare levy. The taxation of a death benefit paid as a pension depends on the ages of the beneficiaries.

A refund of contributions tax may also be available where a death benefit is paid to a dependant as defined in the tax legislation. This is known as an ‘anti-detriment’ payment.

Need more information about super and tax? Contact us or call 1300 655 002 (Mon-Fri 8.00am-5.30pm AEST).