Tax on pensions

Lump sum withdrawals

 Any lump sum you withdraw from Brighter Super is usually made up of two components:

• Tax-free component (generally includes your after-tax contributions)
• Taxable component

The Australian Government requires payments to be proportional so you can’t select which component you want your withdrawal to come from. For more information see the table below or download our Superannuation tax info sheet.

*2022/23 threshold

Pension income payments

If you have reached your preservation age but are under 60 your pension payments may be included as assessable income for tax purposes. But there are advantages that apply to super pension income that don’t apply to salary (such as a tax-free component, 15% tax offset and tax-free investment earnings).

* Some tax will be deducted by the fund but the Australian Tax Office may charge additional tax when you complete your tax return.