Tax Guidelines and TFNs
 

Taxation rules relating to superannuation are complex and may change from time to time.  The Fund recommends that you seek professional advice in relation to taxation and superannuation.

Must I provide a Tax File Number to VISSF?
Legislation requires the Fund to invite you to provide your Tax File Number (TFN). Your TFN may only be used by the Fund for certain purposes and penalties apply should the Fund misuse the information

It is not compulsory to provide your tax file number, however if you do not the Fund will be required to:

•  Deduct tax at the rate of 46.5% from all employer contributions and any concessional contributions (salary sacrifice) that you may make. If your tax file number is provided the rate of tax applied to these contributions will be 15%.
•  Refund any non-concessional contributions (from your after tax salary) you may make.
•  Refund to the Australian Taxation Office any Government co-contribution that may be paid on your behalf.
•  Deduct tax at the top marginal rate when your benefit is paid to you.

If, after 1 July 2007, you provide your employer with your tax file number on a Tax File Number Declaration Form, the employer is required to pass your tax file number to the Fund. However, to ensure that the penalties noted above do not apply to your VISSF Member Account it would be prudent for you to provide your tax file number, if you have not already done so, by completing the Notification of Tax File Number form and sending it to the Fund office.

Download Notification of Tax File Number here.

Tax on Contributions to a Superannuation Fund Tax of 15% is payable on concessional contributions. These are:

• contributions your employer makes on your behalf.
• contributions paid from income on which tax has not been paid. This is usually contributions paid through a salary sacrifice arrangement with your employer.
• contributions on which you have claimed a tax deduction.

However, if you do not provide the Fund with your tax file number, tax of 46.5% is payable on concessional contributions (see above).

No tax is payable on non-concessional contributions you make to the Fund. These are contributions from income on which you have already paid tax (i.e. from after-tax salary or other savings where tax has already been paid).

However, the Fund cannot accept non-concessional contributions from you if you have not provided the Fund with your tax file number. 


Am I liable for tax on payments from my super? You may have to pay tax when you withdraw money from the Fund. The amount of tax will depend on your circumstances, including your age, how long you have been in a superannuation fund and how your superannuation benefit is paid.

Must I pay tax if I rollover my benefit? No tax is payable by you if you elect to rollover your benefit to another superannuation fund, an approved deposit fund, retirement savings account or other approved superannuation institution. Payment of tax by you is deferred until such time as the benefit is paid to you in cash.

The taxation rules relating to superannuation are complex and may change from time to time. The Fund recommends that you seek professional advice in relation to taxation and superannuation.

Notes:

• These figures change from time to time.  Contact the Fund office for the most recent figures.

• The Medicare levy will be added to whichever rate is applicable, but not where the benefit is tax free.

  
• The $145,000 threshold for the concessional component is applicable for the 2008/2009 year.  The threshold is indexed to AWOTE at 1 July each year.
  

The taxation may differ for temporary residents permanently departing Australia.