How is superannuation taxed for investors?
Understand the main ways superannuation is taxed – on contributions, earnings and withdrawals.
Summary
Superannuation is taxed at several stages. Concessional contributions are generally taxed at 15% in the fund, non-concessional contributions are generally not taxed on entry, and investment earnings in accumulation phase are generally taxed at up to 15%. Additional taxes can apply in some circumstances.
What this means
Concessional contributions include employer contributions, salary sacrifice and personal contributions for which you claim a deduction. Contribution caps apply, and Division 293 can impose an additional 15% tax on certain concessional contributions for people whose relevant income and contributions exceed the $250,000 threshold.
Withdrawals from a taxed super fund are generally tax-free from age 60, although different rules can apply to untaxed funds, defined benefits and death benefits. From 1 July 2026, the Division 296 regime also applies to people with very large total super balances, with additional tax applying to earnings attributable to balances above legislated thresholds. These rules are specialised, so high-balance members should check current ATO guidance.
Typical actions
- Track concessional and non-concessional contributions against the current caps.
- Check whether Division 293 may apply if your income and concessional contributions are high.
- If your total super balance is above the Division 296 thresholds, review the current rules and any ATO assessment carefully.
- Check the tax treatment of withdrawals based on your age and whether benefits come from a taxed or untaxed source.
- Seek registered tax or licensed financial advice for complex super arrangements.
Official sources
Last checked: 25 August 2026
Understanding concessional and non-concessional contributions
Explains the two main types of super contributions.
Contributions caps
Current concessional and non-concessional caps.
Tax on super benefits
Explains tax when super benefits are paid out.
Division 293 tax on concessional contributions
ATO guidance on the additional contributions tax for high-income earners.
Better Targeted Super Concessions – 2026 implementation update
Official ATO implementation information for Division 296 from 1 July 2026.
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Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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