Superannuation release and Taxation

Thanks Smurfy, I am in no way smart enough really to interpret what you have mentioned with any sort of black and white definition, however the bit I did get is - see the accountant and make it his problem :D
Thanks

BigDaz wrote:

I know that when the money is released from the super fund then 20% over the top is taken in tax, however are we entitled to claim any offset or rebate on the tax paid on the amount that is released.

Any finance guru's able to help?

Daz, It really depends on your circumstances, in general for example a drawdown from a Superannuation Fund is (in simplistic terms)

1. Tax Free if you are over 60 years (you do not receive a PAYG Summary in that case from your Super Fund);
   
2. Generally, Taxable if you are over Preservation Age (generally, 55 years if born before 1st July 1960, tiered ages to 30th June 1964, after June 1964 is 60 years); in this case you receive a PAYG Summary from your Super Fund; with Taxed & Untaxed Components noted; for the Taxed Components there is a Tax Offset which is approximately the Tax Payable on the Super Withdrawal. The draw down is included in your Taxable Income (for determining items for example of Medicare Levy & Medicare Surcharge; Other Tax Offsets, e.g. Spouse Offset, and Family payments etc) This applies to drawdowns up to your Age Based Limit only.
   
3. Generally, Taxable if you are under Preservation Age (generally, 55 years if born before 1st July 1960, tiered ages to 30th June 1964, after June 1964 is 60 years); in this case you receive a PAYG Summary from your Super Fund; with Taxed & Untaxed Components noted depending on the basis of the contributions (Concessional & Non-Concessional); there may/may not be a Tax Offset against the Income drawn down. This applies to drawdowns up to your Age Based Limit only.
   

Note: The above depends on your individual circumstances, it can vary substantially for each individual. Your Super Fund and your Tax Accountant will be able to give you an exact amount that is Taxable to you.

More information: refer to your own super fund's website and read, or e-mail and ask them.

Daz a Hint: A good rule of thumb is if the Super Fund has deducted Tax from your payment, then it is sure to be Taxable at least to some degree; but this is not always the case.

I know that when the money is released from the super fund then 20% over the top is taken in tax, however are we entitled to claim any offset or rebate on the tax paid on the amount that is released.

Any finance guru's able to help?