Current as of 17 Feb 2026. Always verify current year rates.
How are super withdrawals taxed?
Short answer:
Tax on super withdrawals depends on your age, whether you take a lump sum or an income stream, and the taxable vs tax‑free components. Many payments from taxed funds are tax‑free after 60, but there are important exceptions (for example, some untaxed elements). For current rules and examples, use the ATO guidance for lump sums and income streams.
Key takeaways
Age matters: treatment can change at 60 and at preservation age
Lump sums and income streams can be taxed differently
Taxable vs tax‑free components affect outcomes
Untaxed elements can be treated differently
Use ATO guidance for current rules and examples
Why this matters
Tax changes the net amount you have to spend. A clear view of the rules helps you make calmer choices about how and when to withdraw.
Mini-plan (3-4 steps)
- Confirm your age and whether your fund is taxed or untaxed.
- Check if you’re taking a lump sum, income stream, or both.
- Review the ATO guidance for the payment type you’re using.
- If you’re unsure, get licensed advice before making large withdrawals.
Related questions
Sources (so you can verify)
- ATO - /individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/tax-on-super-benefits
- ATO - /individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/retirement-withdrawal-lump-sum-or-income-stream
- Moneysmart - /how-super-works/super-withdrawal
Disclaimer: Information provided is general in nature and does not constitute personal financial advice. You should consider seeking advice from a licensed financial planner before making any financial decisions.
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