These pages contain general information about tax rates and thresholds for super contributions and benefits.

The main thing to understand about how super is taxed is that for most people past the age of 60, super is now effectively tax-free.

If you have more than $2 million in superannuation, the portion above this threshold will be taxed but only at 15%. But regardless of how and at what stage superannuation is taxed, it is still taxed at extremely concessional levels compared to other types of investment and this is what makes superannuation so special.

Limits, thresholds and special conditions nonetheless still exist around superannuation tax and it is important that employers, their employees, consumers and financial advisers properly understand these rules or consult with someone who does.

For example, while an individual or company (on behalf of its employees) may contribute any amount into superannuation, there is a limit to which a tax deduction can be claimed for these contributions. Moreover, the government requires all employers to provide a minimum level of superannuation for their employees, called the super guarantee, which is equivalent to 12% of an employee's wage or salary.

To find out more about how favourable taxation rules apply to superannuation, see www.ato.gov.au/inividuals/super/.

To help you get started, we have prepared the following taxation information tables.

SUMMARY OF KEY TAX THRESHOLDS

Financial year	Charge percentage
2023-24	11%
2024-25	11.5%
2025-26 and later years	12%
Maximum contribution base*	Maximum amount in a quarterly contribution period
2025-26	$62,500
2024-25	$65,070
Superannuation contribution caps (annual)
Concessional 2025-26	$30,000
Concessional 2024-25	$27,500
Total superannuation balance on June 30, 2025	Non-concessional cap 2025-26
Under $1.9 million	$120,000
$1.9 million and over	Nil

*Note: An anomaly owing to the rise in the SG rate from July 1, 2025 combined with the non-indexation of the concessional contribution cap caused the maximum contribution base to fall from 2024-25 to 2025-26.

TAX ON SUPER LUMP SUM WITHDRAWALS

Funds have been taxed (most common)
Age	Lump sum
Age 60 and over	Tax-free
Below preservation age (60)	Taxed up to maximum rate of 20% plus Medicare levy
Funds not yet taxed
Age	Lump sum
Age 60 and over	Taxed up to a maximum of 15% on amounts up to $1.865 million (called the 'untaxed plan cap'). Top marginal tax rates apply to any amounts of more than $1.865 million.
Below preservation age (60)	Taxed up to a maximum of 30% plus Medicare. Top marginal tax rates apply to any amounts of more than $1.865 million.
	Age	Component subject to PAYG withholding	Taxation treatment
Superannuation lump sum benefit (terminally ill recipient)	Any	None	Nil
Super death benefit payments to non-dependants
Age of deceased	Type of death benefit	Age of recipient	Taxation treatment
Any age	Lump sum	Any age	Amount that has been taxed in the fund are taxed at a further 15%. Any amount not taxed in the fund is taxed at 30%.
Any age	Income stream	Any age	Cannot be paid as an income stream. Income streams that commenced before July 1, 2007 are taxed as if received by a dependant.
Super death benefit payments to dependants
Age of deceased	Type of death benefit	Age of recipient	Taxation treatment
Any age	Lump sum	Any age	Tax free (not assessable, not exempt income).
Aged 60 and over	Income stream	Any age	Amount taxed in the fund is tax free. Any amount untaxed in the fund is taxed at marginal rates, and a 10% tax offset is available.
Below age 60	Income stream	Above age 60	Amount taxed in the fund is tax free. Any amount untaxed in the fund is taxed at marginal rates, and a 10% tax offset is available.
Below age 60	Income stream	Below age 60	Amount taxed in the fund is taxed at marginal rates with a 15% offset available. Any amount untaxed in the fund is taxed at marginal rates (no offset).

TAX ON SUPER INCOME STREAMS 

Age of recipient	Amount already taxed in the fund
Age 60 or older	Tax free
Under preservation age (60)	Taxed at marginal tax rates with no tax offset (15% tax offset available if disability superannuation benefit).
Age of recipient	Amount untaxed in the fund
Age 60 or older	Taxed at marginal rates, with 10% tax offset.
Under preservation age (60)	Taxed at marginal rates, with no tax offset.

PERSONAL MARGINAL INCOME TAX RATES

Taxable income	Tax (2025-2026)
0 - $18,200	Nil
$18,201 - $45,000	$0 + 16% > $18,200
$45,001 - $135,000	$4,288 + 30% > $45,000
$135,001 - $190,000	$31,288 + 37% > $135,000
More than $190,000	$51,638 + 45% > $190,000

MEDICARE LEVY SURCHARGE

Family structure (2025-26)
Singles	Less than $101,000	$101,001 - $118,000	$118,001 - $158,000	$158,001 or more
Families (combined)	Less than $202,000	$202,001 - $236,000	$236,001 - $316,000	$316,001 or more
Medicare levy	0%	1.00%	1.25%	1.50%
* Income thresholds are typically indexed on July 1 with average weekly ordinary time earnings (AWOTE).

LOW INCOME TAX OFFSET (LITO)

Lower income threshold (2025-26)	Higher income threshold	Max offset
$0	$37,500	$700
$37,501	$45,000	$700 minus 5% of income exceeding $37,500
$45,001	$66,667	$325 minus 1.5% of income exceeding $45,000
More than $66,667		Nil

GOVERNMENT CO-CONTRIBUTIONS

Income year	Lower income	Higher income	Max benefit
2025-26	$47,488	$62,488	$500

LOW INCOME SUPERANNUATION TAX OFFSET (LISTO)

Amount payable 2025-2026	Maximum LISTO benefit that can be received	Maximum adjusted taxable income* to be eligible	Income test
15% of concessional contributions	$500	$37,000	10% or more of total income is derived from business or employment
* Adjusted taxable income = taxable income + adjusted fringe benefits total + total foreign income + total net investment loss + tax free pension or benefit + reportable superannuation contributions.

AGE RESTRICTIONS ON CONTRIBUTIONS

Type of contribution	Under 67	Over 67 but under 75*	75 and over
Super guarantee contributions	Yes	Yes	Yes
Voluntary employer contributions	Yes	Yes	No
Personal concessional contributions	Yes	Subject to work test	No
Non-concessional contributions	Yes	Yes	No
Spouse contributions	Yes	Yes	No
Government co-contributions	Yes	Yes, if under age 71 at the end of financial year	No
Downsizer contributions	Contributor must be age 55 or older	No upper age limit	No upper age limit
* Includes on or before 28 days after the end of the month in which the member turns 75 .

MINIMUM DRAWDOWNS APPLYING IN 2025-2026

Age	2024-25 annual percentage factor
Under 65	4%
65-74	5%
75-79	6%
80-84	7%
85-89	9%
90-94	11%
95 or older	14%

SOCIAL SECURITY ENTITLEMENTS

Age pension:
Family situation	Maximum benefit ($ per fortnight)*
Single pensioner	$1,178.70
Partnered pensioner	$888.50
Couple separated due to ill health (each)	$1,178.70
As at September 20, 2025. * Pension figures include the pension supplement and the energy supplement.
Sources: Australian Taxation Office and Services Australia