Flood levy and your super

19/07/2011

Provided by Mercer. The information in this article does not necessarily reflect the views of the Trustee.


The Federal Government has introduced a temporary Flood and Cyclone Reconstruction Levy (flood levy) which applies to your taxable income, including relevant superannuation benefit payments, over $50,000 in the financial year ending 30 June 2012.

The flood levy will only apply from 1 July 2011 to 30 June 2012 and will apply to taxable income, including salary, wages and investments. It may also apply to employment termination payments and some superannuation payments.

How much will you pay?

 

 

Taxable income Flood levy on this income
$0 to $50,000

Nil

$50,001 to $100,000

0.5 of a cent for each $1 over $50,000

Over $100,000

$250 plus one cent for each $1 over $100,000

 

Scenario

Sandra is 58 years old and receives a superannuation lump sum made up of a $50,000 tax-free component and a taxable component of $100,000. Sandra has no other income. Sandra pays the flood levy on her superannuation benefits received in the year, as follows:

  • no levy (or tax) is payable on the $50,000 tax-free component; and
  • a levy of $250 is payable on the $100,000 taxable component.

 

How will your super be affected?

 

The flood levy will be deducted* from super benefit payments between 1 July 2011 and 30 June 2012 including:

  • the taxable component of all superannuation lump sum and pension benefits you receive before age 60 (including the part of the taxable component that is not subject to tax from age 55 to 60); or
  • the taxable component of a lump sum death benefit paid to a non-dependant beneficiary.


The levy will generally not apply if you are:

  • over age 60; or
  • rolling over your money between super funds; or
  • taking a cash amount less than $200.


*Exemptions apply to people affected by natural disasters. See the ATO super levy information page on the ATO website (www.ato.gov.au) to see if you qualify for an exemption.

 

This information has been prepared by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. Any advice contained in this document is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised, financial adviser if you are unsure of what action to take. "MERCER" is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2012 Mercer LLC. All rights reserved.

 

LCA Nominees Pty Ltd ABN 61 008 204 939 AFS Licence #240571, as Trustee for Lutheran Super ABN 93 371 348 387.

This website is provided by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. The Trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.