Tax on super

The tax payable on contributions depends on the type of contribution made to your super.

The Government has set limits, called contribution caps, on the amount of concessional and non-concessional contributions you can make into super. If you exceed these limits, you may pay additional tax.

For further information about contribution caps and the consequences of exceeding these caps, please refer to the Australian Tax Office website.

The investment earnings in Qantas Super are generally taxed at a rate of 15%. This tax on investment earnings is reflected in the Credited Interest Rates (CIRs), which are declared on an after-tax basis.

Investment earnings from assets supporting income accounts in Gateway are tax-free. Transition to retirement income streams are taxed at 15% on earnings.

If you take any part of your super in cash after age 60, generally no tax will be payable. Prior to age 60 some tax may be payable. This tax will be deducted from your benefit by Qantas Super.

For tax purposes, your super is divided into two parts as follows:

Your taxable component is the balance of your benefit.

The amount of tax depends upon your age when you receive the benefit. For 2024/25 if you are:

*Indexed in line with AWOTE in increments of $5,000 (rounded down) and reduced by the taxable components of lump sum amounts previously received from Qantas Super
or another fund since reaching preservation age.

^This rate includes the Medicare Levy which is currently 2%.

There is generally no tax payable if your benefit is paid to you due to a Terminal Medical Condition.

Your preservation age is age 60 if you were born after 30 June 1964. If you were born before 30 June 1964, you have already reached your preservation age.

Income protection benefits are paid as a monthly income payment. These payments are treated as if they were income (salary) and hence are taxed at personal tax rates.

Death benefits paid to dependants (as defined under tax laws) as a lump sum are tax-free. Death benefits paid to a non-dependant (under tax laws) may be subject to tax of up to 32% (including the Medicare levy).

Note: An adult child is not a ‘dependant’ for these tax purposes unless the child is actually dependent on you at the time of your death (e.g. dependent on financial support) or otherwise in an interdependency relationship with you.

Tax will generally be withheld at the rates shown in the table below:

*Tax on a portion of the taxable component paid to a non-dependent may need to be withheld at 32% (including the Medicare levy).

^Some higher income taxpayers and families without qualifying private hospital insurance cover also pay a Medicare levy surcharge. Some taxpayers do not pay Medicare levy or pay it only at a reduced rate.

If some or all of your death benefit is paid to your legal personal representative, the tax payable will depend on who the benefit is ultimately paid to (a dependant or non-dependant under tax laws). The appropriate tax is a matter for your legal personal representative to determine. Qantas Super is not required to withhold tax from lump sums paid to a legal personal representative.

The tax-free and taxable components of a death benefit before adding any anti-detriment payment are paid proportionately from your account. Any anti-detriment payment is added solely to the taxable component.