Withdrawal or retirement benefits

The tax payable on benefits paid as cash depends on a number of factors including: 

•  Your age when you receive the benefit.  For example, if you are age 60 or over, all benefits paid to you from CSR Super will be tax free.  If you are under age 60, any benefits paid to you will have two components – a tax-free component and a taxable component.  See the table below for more details,
• What type of benefit is paid (i.e. retirement, disability or death),
• How you receive the benefit (e.g. lump sum amount or pension), and
• Who receives the benefit (e.g. on your death). 

The tax-free component of a lump sum benefit payment is always tax-free.  The taxable component is generally taxed as follows:

Age	Tax rate
Under preservation age*	20% plus the Medicare Levy**
Preservation age to 59	The first $165,000 *** is tax free with the remainder taxed at 15% plus the Medicare Levy
60 and over	Tax free

        

*	At least age 55 – refer to page 21 of the PDS
**	Medicare Levy is 1.5%
***	Indexed annually as at 1 July.  This is a lifetime threshold and does not apply per benefit payment.

IMPORTANT NOTE:  The Government has introduced a temporary Flood and Cyclone Reconstruction Levy (“Flood Levy”) which applies to the 2011-2012 financial year only. If you are aged under 60 and the taxable component of any lump sum payment made to you is greater than $50,000 then the fund is required to withhold additional tax from the taxable component of your lump sum payment. You may be exempt from paying the Flood Levy. For further information on the Flood Levy, please contact us on (02) 9235 8533.

Please refer to the CSR Super Product Disclosure Statement for further information on taxation.