members
Tax and pensions
All superannuation and pension payments made to members aged 60 and over are tax-free. Find out here what taxes apply if you take a pension before age 60.
What taxes apply to my pension?
All superannuation and pension payments made to members aged 60 and over are tax-free. If you purchase a pension before age 60, your pension payments will become tax-free when you turn 60.
If you are aged under 60
If you are under 60 when you purchase a UniSuper pension some taxes may apply and you are required to complete a Tax file number collection form. This enables UniSuper to deduct the appropriate rate of tax (if any) after taking into account any of the allowable deductions and offsets (previously referred to as rebates), including the:
- Tax-free threshold
- Dependent Spouse Offset
- Annual Deductible Amount
- 15% Pension Offset
We will let you know which tax deductions may apply to you when you purchase a pension.
The following taxes may apply if you are under age 60.
| Tax on | When applicable |
|---|---|
| Pension income | Your UniSuper pension income will be taxed at your marginal rate after allowing for deductible amounts and offsets (formerly called rebates). UniSuper will deduct tax (if applicable) from your regular monthly pension payment, and we will send you a PAYG Payment Summary (formerly called a group certificate) in July each year. |
| Investment earnings | Investment earnings on pension assets are not subject to tax regardless of your age. Pension assets are not subject to investment earnings tax. |
| Withdrawals | If you make a cash withdrawal from your Flexi Pension it may be subject to lump sum tax rates if you are under age 60. No lump sum tax is payable if you convert a UniSuper Accumulation Super account to a pension or if you roll it over to another super fund. |
| Cash | Cash benefits may be subject to lump sum benefits tax if you are under age 60. |
Social Security
Your entitlement to a Social Security age pension is subject to the Centrelink or Department of Veteran's Affairs (DVA) income and assets tests.
The only exception is for members who joined the fund before 1 July 1998 and who take out an Indexed Pension based on Trust Deed Factors.
If you are considering using your benefit to buy a pension, we recommend that you seek advice from a licensed financial adviser or from Centrelink/DVA on how this may affect your age pension eligibility.
For further information on the fees and charges applying to UniSuper pensions or pensions more generally you should refer to the Product Disclosure Statement, Your guide to pensions.
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