Learn about how Australian taxation legislation may apply to your account in Qantas Super.

To help you save for your retirement, the Federal Government provides a range of tax concessions. In super, tax may be payable on:

  • Contributions (when amounts are paid into your super account);
  • Earnings (on your super investments);
  • Withdrawals from your super; and
  • Income protection payments and Death benefits.

For information on tax payable on a Qantas Super Income Account, learn What you need to know about Tax on your Income Account in Gateway.

1. Tax on contributions

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

Type of contributionTax payable
Concessional (before-tax) contributions: Includes employer contributions and any contributions made from before-tax salary (salary sacrifice)Amounts (under the cap - see below) are generally taxed at a rate of 15%.
If you don't provide Qantas Super with your Tax File Number (TFN), your concessional contributions will be taxed at 49% (including Medicare Levy of 2%).
An additional 15% tax will apply to individuals with combined earnings and concessional contributions exceeding $250,000.
Non-concessional (after-tax) contributionsNo tax is paid on amounts under the non-concessional contributions cap.
Qantas Super isn't able to accept non-concessional contributions from you if you haven't supplied your TFN.

Type of contribution

Contribution caps

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.

Contribution typeContributions cap
Concessional contributions capThe concessional contributions cap for the 2019/20 year is $25,000, indexed in line with average weekly ordinary time earnings (AWOTE) in increments of $2,500 (rounded down).
Unless withdrawn, any concessional contributions made above the cap will also count against your non-concessional contributions cap.
If you have a total superannuation balance for tax purposes of less than $500,000 of 30 June of the previous financial year, you may be entitled to make additional concessional contributions for any unused amounts. The 2019/20 financial year is the first year you can carry forward unused amounts. Unused amounts are available for a maximum of five years, and after this period will expire.
Non-concessional contributions capFor 2019/20, the non-concessional contributions (NCC) cap is $100,000.
If you are under 65 on 1 July in a financial year, and your NCCs exceed the annual cap, you will trigger an aggregation of your cap for that year and the following two years, meaning you can contribute up to $300,000 in a three-year period.
Individuals whose total super balances (including the balances of a Super Account and Income Account, in the case of Qantas Super) exceed $1.6 million can't make further NCCs.

Contribution type

Exceeding your contribution caps
If you exceed the...What happens if you exceed the cap
Concessional contributions capThe Australian Taxation Office (ATO) will include any concessional contributions made in excess of the cap in your assessable income and apply tax at your marginal tax rate (less a 15% offset for the contributions tax payable within the super fund).
Interest will also be charged to you by the ATO for any excess concessional contributions that increase your tax liability for the relevant financial year; this is to account for the deferred payment of tax on these monies.
You may also have the option to withdraw, via the ATO, any excess concessional contributions (less the 15% contributions tax) from your account. Upon request in the approved form, Qantas Super will transfer the excess concessional contributions (less the 15% contributions tax) to the ATO. You will be refunded this amount net of any tax you owe through the issue of an amended income tax assessment.
Unless withdrawn in this way, any concessional contributions in excess of the cap will also count against the nonconcessional contributions cap.
Non-concessional contributions capNo tax is paid on non-concessional contributions under the cap. Any amounts above the cap will be taxed at a rate of 49% (including Medicare Levy of 2%). This tax is payable by you, and you must withdraw this amount from your super account to pay the tax.
Alternatively, you may have an option to withdraw the excess. In that case you will be also required to withdraw an amount of imputed earnings on which you will be taxed.

If you exceed the...

2. Tax on earnings

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.

3. Tax on withdrawals

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:

ComponentComponent descriptionTax you pay
Tax-free componentYour crystallised (tax-free) component at 1 July 2007 plus any non-concessional contributions made after 1 July 2007.Nil
Taxable componentThe balance of your benefitThe amount of tax depends upon your age when you receive the benefit. For 2019/20 if you are:
- age 60 and over:generally you won't pay tax on withdrawals from your account
- aged between your preservation and age 60: the first $210,000* of your taxable component is tax free. Amounts of the taxable component above this limit are taxed at up to 17%^
- under your preservation age: the full taxable component is taxed at 22%^
If you are under age 60 and have not provided your TFN, tax on the taxable component of your super will be withheld at the highest marginal tax rate plus Medicare levy, currently a combined rate of 49%.

Component

*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.

Preservation age

Your preservation age depends on when you were born.

When you were bornPreservation age
Before 1 July 196055
1 July 1960 - 30 June 196156
1 July 1961 - 30 June 196257
1 July 1962 - 30 June 196358
1 July 1963 - 30 June 196459
After 30 June 196460

When you were born

4. Tax on Income Protection Payments and Death Benefits

Tax on Income Protection Payments

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.

Tax on Death Benefits

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:

Paid toTax-free componentTaxable component
Dependant (for these tax purposes)NilNil
Non-dependant (for these tax purposes)15%* tax plus Medicare levy, currently 2%^

Paid to

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

^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.

Other info you might be interested in

What is super?

Super is simply a way of saving for your future.

What is a defined benefit super fund?

A defined benefit fund is a super fund where the benefits are calculated by a predetermined formula.

What is salary sacrificing?

Salary sacrificing is when an employee agrees to give up part of their salary or wages in return for benefits of a similar value.

What are co-contributions?

The super co-contribution is a tax-free bonus from the government to help people on low to middle incomes boost their super.

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