Tax and Structures

Superannuation taxation

Assessable income

The assessable income of a super fund generally includes all types of income from its investments such as interest, dividends, rent and capital gains.

However, it also includes concessional contributions received on behalf of its members, which includes all contributions the member or employer making the contribution claims as a tax deduction.

This is why they are taxable contributions and therefore incur contributions tax of 15% (increasing to 30% for individuals with income greater than $250,000). Any contribution tax is withheld by the super fund and forwarded to the ATO.

Some of the main types of concessional contributions are:

  • where your employer contributes 10% of your salary to super on your behalf (known as the compulsory super guarantee contribution)
  • where your employer contributes additional amounts to super on your behalf (known as salary sacrifice or voluntary employer contributions)
  • where you make personal contributions and claim a tax deduction for a personal superannuation contribution you make.  Those members aged 67 to 74 will need to satisfy a work test if they wish to claim a personal superannuation deduction for their contribution (the age limit was increased from 67 to 75 effective from the 2022/23 financial year). The work test is defined as having been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days in the financial year;