Calculator
Calculate tax on your superannuation withdrawals
Note: Most Australians are in "Taxed" funds. "Untaxed" elements usually refer to older public sector schemes where the fund itself didn't pay 15% contributions tax.
Net Cash Received
After-tax estimate
Aged 60+: Withdrawals from taxed elements are tax-free.
For most Australians, the ultimate goal of superannuation is to provide an income stream (pension) in retirement. However, there are many scenarios where withdrawing a portion of your super as a single 'Lump Sum' is preferable—such as paying off a mortgage, funding a major medical procedure, or simply re-investing the capital outside of the super environment. In Australia, the tax treatment of a lump sum withdrawal is highly dependent on two factors: your age and the 'tax components' of the money inside your fund. Once you turn 60 and have met a 'condition of release' (like retiring or changing jobs), most super lump sums from taxed funds are completely tax-free. However, for those under 60 but over their 'preservation age', or those with money in 'untaxed' funds (common in some public sector schemes), the ATO may claim a significant portion of your withdrawal. This calculator helps you navigate these complex rules, ensuring you don't receive a nasty surprise when you access your hard-earned savings. Understanding the timing of your withdrawal is the key to minimizing tax and maximizing your available retirement capital.
Our Super Lump Sum Estimator applies the current ATO tax rates for the 2024-25 year. The logic is divided into three primary age brackets. **Age 60 and Over**: For most members, the tax rate is 0%. **Preservation Age to 59**: There is a 'Low Rate Cap' (currently $235,000 for life). Withdrawals up to this cap are generally tax-free, while amounts above the cap are taxed at 15% (plus Medicare). **Under Preservation Age**: Withdrawals (if permitted under hardship or other grounds) are typically taxed at 20% (plus Medicare). We also distinguish between the **Taxed Element** and the **Untaxed Element**. A 'Taxed Element' comes from a fund where 15% tax was already paid on contributions; an 'Untaxed Element' (common in older government schemes) has never been taxed and therefore carries a higher withdrawal tax rate—often 15% even after age 60. The formula also automatically adds the 2% Medicare Levy where applicable, providing a 'Net Cash' result that reflects the actual amount that will land in your bank account.
If you are 59 and considering a large withdrawal, waiting just one year until your 60th birthday could save you thousands. For a $300,000 withdrawal (assuming you've used your low-rate cap), the tax difference between age 59 and 60 can be over $10,000. Timing is everything in superannuation tax planning.
You cannot choose to only withdraw the 'tax-free' component of your super. Every withdrawal must be taken pro-rata from your 'Tax-Free' and 'Taxable' components. If your fund is 20% tax-free and 80% taxable, every dollar you take out will follow that exact 20/80 split for tax purposes.
The tax rules change significantly if a lump sum is paid out as a death benefit to a 'non-dependent' (like an adult child). In these cases, the taxable component is often hit with a 15% tax. Taking a lump sum *before* you pass away can sometimes be a strategic way to pass on more wealth to your heirs tax-free.
Before using this calculator for a final decision, call your super fund and ask for a 'Benefit Quote'. This will give you the exact breakdown of your Taxed and Untaxed components, which you can then plug into our tool for a high-precision estimate.
You can't just take money out because you want to. You must meet a 'Condition of Release', such as reaching age 65, retiring after your preservation age, or leaving an employer after age 60. Ensure you legally qualify before planning your withdrawal.
Some savvy retirees take a tax-free lump sum after 60 and immediately 're-contribute' it back into super as a non-concessional contribution. This effectively turns 'taxable' components into 'tax-free' components, which can be a huge benefit for estate planning.
John, aged 61, wanted to withdraw $150,000 to clear his mortgage. Because he was over 60 and his money was in a standard industry fund (taxed element), the calculator showed he would pay $0 tax. He received the full $150k and saved $800 a month in mortgage interest.
Sarah, aged 57 (her preservation age), needed $250,000 for a lifestyle change. The calculator showed her that the first $235,000 was tax-free (using her low rate cap), but the remaining $15,000 would be taxed at 17% (including Medicare), resulting in a small tax bill of $2,550.
Barry was in an older government fund with an 'untaxed element'. Even though he was 63, the calculator showed him that a $100k withdrawal would still attract a 15% tax because the money had never been taxed inside the fund. He adjusted his withdrawal amount to account for the $15,000 'hit'.
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