Tax rate table - SMSF Review

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Tax rate table of SMSF lump sum and pension payments

The following summarises the tax treatment of taking either a lump sum, or a pension (including disability payments) from your SMSF based on your age.

Tax free component

The tax free component of all benefits taken, as the name suggests, is tax free.

Taxable component

The taxable component of any benefit taken from your SMSF is taxed in the following way:

Type of benefit	Under age 55	Aged 55 to 59	Aged 60 and over
Lump Sum	20%	First $150,000 is tax free, with the balance taxed at 16.5%	Nil
Pension	Treated as normal assessable income and taxed at your marginal tax rates	Treated as normal assessable income & taxed at your marginal tax rate, but with a tax offset equal to 15% of the taxable component	Nil
Permanent disability pension	Treated as normal assessable income & taxed at your marginal tax rate, but with a tax offset equal to 15% of the taxable component	Treated as normal assessable income & taxed at your marginal tax rate, but with a tax offset equal to 15% of the taxable component	Nil
Temporary Disability benefit	Treated as normal assessable income and taxed at your marginal tax rates	Treated as normal assessable income and taxed at your marginal tax rates	Treated as normal assessable income and taxed at your marginal tax rates

*Note that this assumes that none of the taxable component of your SMSF benefits are what is known as an "untaxed element".

Untaxed elements tend to only arise when the SMSF receives a payout from life insurance. These are relevant for Death benefit payout's. See our Tax rate table for death benefits.

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