Super lump sum tax calculator (withdrawal tax, Australia)
Taking a lump sum from super? From age 60, the taxed element is tax-free. Under 60 (which is now under preservation age for everyone), the taxed element is taxed at up to 22% and an untaxed element at up to 32%, including the Medicare levy. From 60, an untaxed element (common in public sector schemes) is taxed at up to 17% up to the untaxed plan cap ($1,935,000 for 2026-27). Enter the components from your fund to see what's withheld under Schedule 12 and the maximum tax. Figures match the ATO's examples.
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Super lump sum tax and withholding rates
| Component | Under 60 | 60 or over |
|---|---|---|
| Tax-free component | 0% | 0% |
| Taxed element | Up to 20% + Medicare levy (withhold 22%) | Tax-free (not assessable) |
| Untaxed element up to the untaxed plan cap | Up to 30% + Medicare levy (withhold 32%) | Up to 15% + Medicare levy (withhold 17%) |
| Untaxed element above the cap | 45% + Medicare levy (withhold 47%) | 45% + Medicare levy (withhold 47%) |
| No TFN given | Withhold 47% of the taxable component | Withhold 47% of the untaxed element |
Untaxed plan cap: $1,935,000 for 2026-27 and $1,865,000 for 2025-26, applied separately for each fund. Foreign residents' withholding rates leave out the 2% Medicare levy. A transition to retirement income stream is tax-free from 60 (taxed element), and you can't start one before your preservation age, now 60.
Examples (ATO Schedule 12)
| Example | Withheld |
|---|---|
| Chloe, over 60: $300,000 lump sum = $30,000 tax-free + $190,000 taxed + $80,000 untaxed: 17% of $80,000 | $13,600 |
| Tom: rolls over $1,967,000, all untaxed; cap $1,935,000: 47% of $32,000 | $15,040 |
FAQ
Is a super lump sum tax-free after 60?
The tax-free component and the taxed element are tax-free from age 60, and you don’t include them in your tax return. An untaxed element (from some public sector funds) is still taxed at up to 15% plus the Medicare levy, up to the untaxed plan cap.
How much tax is withheld from a super withdrawal under 60?
Under Schedule 12 your fund withholds 22% from the taxed element and 32% from an untaxed element up to the untaxed plan cap (47% above it), or 47% of the whole taxable component if it doesn’t have your TFN. The final tax is worked out in your return.
What is the untaxed plan cap for 2026-27?
$1,935,000 (it was $1,865,000 for 2025-26). It applies separately to each super fund. Untaxed amounts above the cap are taxed at the top rate, and withheld at 47%.
What is the preservation age now?
60 for anyone born on or after 1 July 1964. So in 2026 everyone under 60 is under their preservation age and can generally only get super early on limited grounds, such as severe financial hardship or compassionate grounds.
Is a transition to retirement pension taxed?
From 60, payments from the taxed element of a transition to retirement income stream are tax-free. Since preservation age is now 60, you can’t start one before then. The fund still pays tax on the investment earnings inside a TTR.
Sources (checked 17 Oct 2026): ATO Schedule 12: Tax table for superannuation lump sums; Payments from super (key rates and thresholds); Tax on super benefits.
General information, not tax advice. This covers member benefit lump sums only. It doesn't cover death benefits, terminal medical condition payments, disability benefits, departing Australia super payments, or income streams other than the TTR note. The marginal-rate estimate ignores other offsets and the low-income Medicare levy reduction. Your fund's payment summary shows the components.