Taxation

Contributions tax

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.

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 Statement we send you each year are calculated after the benefit reduction has been applied.

Benefits tax

Superannuation benefits you receive after age 60 are not subject to tax. If you are under age 60, you may have to pay tax on the benefits you receive.

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 tax file number (TFN)
• the amount of tax payable on superannuation benefit payments at certain ages.