How your benefit is taxed

Since 1 July 1988, State Super has been required to pay Commonwealth tax on the employer contributions used to finance your benefits. In addition, tax is payable on any contributions you make on a salary-sacrifice basis. Your benefits will be reduced to offset this tax (except in the event of your death).

The benefit may also be reduced by:

• any contributions surcharge tax debt
• benefit amounts already paid to you on financial hardship or compassionate grounds.

The amounts shown in the Annual Benefit Statement we send you each year are calculated after the benefit reduction has been applied.

Benefits tax

No benefits tax is payable on superannuation benefits if you are over 60 when you receive the benefit. If you are under 60, you may have to pay tax on these benefits.

Please see STC Fact Sheet 3: Taxation for details of the Commonwealth tax rules affecting superannuation that took effect from 1 July 2007, including:

• the importance of providing your TFN
• the amount of tax payable on superannuation benefit payments at certain ages.