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Lump Sum Benefits  

Lump Sum Benefits
Income Component Payment Date Age Amount Subject to Tax Tax Rate Including Medicare
Lump Sum - Taxable Component - Taxed Element Under preservation age Whole Amount 22%
At or above preservation age and under 60 To low cap amount Nil
Above low cap amount 17%
Age 60 and above Whole amount Nil
Lump Sum - Taxable Component - Untaxed Element Under preservation age To untaxed plan cap 32%
Above untaxed plan cap 47%
At or above preservation age and under age 60 To low cap amount 17%
Above low cap amount up to untaxed plan cap 32%
Above untaxed plan cap 47%
Age 60 and above To untaxed plan cap 17%
Above untaxed plan cap 47%

The above includes a 2% Medicare levy. For earlier year Medicare levy rates, see separate section. The "tax free component" is not taxed.

The caps are:

Year Low Cap Amount Untaxed Plan Cap
2019/20 $210,000 $1.515m
2018/19 $205,000 $1.480m
2017/18 $200,000 $1.445m
2016/17 $195,000 $1.415m
2015/16 $195,000 $1.395m
2014/15 $185,000 $1.355m
2013/14 $180,000 $1.315m
2012/13 $175,000 $1.255m
2011/12 $165,000 $1.205m
2010/11 $160,000 $1.155m
2009/10 $150,000 $1.100m


The caps are indexed in line with AWOTE in increments of $5000 (rounded down). The low rate cap amount is reduced by any amount previously applied to the low rate threshold. There is no tax on superannuation lump sum benefits of less than $200.

Death Benefit Lump Sums

Lump sums paid on death to a dependant are tax free on both the taxed and untaxed elements. If paid to a non-dependant, the rate is 15% on the taxed element and 30% on the untaxed element.

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