Tax components of superannuation benefits

Understanding and maintaining tax components of a member superannuation account is important as it will determine the quantum of tax payable when benefits are paid out.

Tax-free and taxable components

The tax-free and taxable components can change over time and are best explained in the following diagram. Suiperannuation member benefits tax components

Allocation of earnings

All positive and negative investment earnings are allocated to member account based on the following principles: accumulation phase pension phase

About the author

Naz Randeria is the Founder and Managing Director of Reliance Auditing Services. With more than 25 years’ experience in audit and accounting, Naz is an ASIC registered SMSF Auditor, SMSF Specialist Auditor, Registered Company Auditor, and Chartered Accountant.

She is actively involved in the SMSF audit sector and is passionate about sharing audit, compliance and SMSF knowledge with clients, professional colleagues and the wider public.

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DISCLAIMER: This information is an interpretation of rules, regulations and standards. It should not be considered as general or specific advice and neither purports, nor is intended to be advice on any particular matter. No responsibility can be accepted for those who act on the contents of this publication without first obtaining specific advice. Liability limited by a scheme approved under Professional Standards Legislation.