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Hi lm asking about collecting my Super.. Five yes ago l was forced to not b able to work through lymphoma diagnosis and treatment... Atm lm on disability pension and have 60 k in super...lm 57 yo. Do l have to pay 17% tax on this when l want to collect it.??....thanks bohalloran.
Responses
Hi Bernadette,
It depends on the components.
Tax Free component can be withdrawn tax free.
Taxable - taxed can be withdrawn tax free for those between preservation age and age 60 provided it is within the low rate cap ($195,000). If you exhaust your low rate cap, then you pay 17% tax.
Taxable - untaxed will incur 17% if within the low rate cap and 32% above that.
Unless some of that $60k is insurance proceeds, then I would think that it is either tax free, or taxable - taxed component. And if you've made no other withdrawals from super, then it would be within the low rate cap, making it tax free. But it would be best to check to see if there is any taxable - untaxed component. If there is, it's probably best waiting until after you turn 60 to withdrawal.
Cheers
Glenn
you ask your super fund. They can advise you on the tax components of the super, and they should be able to offer advice on the best way to get the super paid to you with the smallest amount of tax. That is the reason they take management fees out, and they have all the tools at their disposal to ensure you get the best outcome.
Hi Bernadette, sorry for the delay in responding. Yes, as Brendan said, call them and they'll be able to tell you the tax components.