Pension & tax
How tax works once you stop working.
Understand how different kinds of retirement income may be treated, and which questions to bring to a registered tax agent.
What to understand
How retirement income may be taxed.
- Taxable income
- Salary, business income, rent, interest and dividends generally form part of taxable income, less allowable deductions.
- Super withdrawals
- Not every super withdrawal is taxable. Treatment depends on your age, the type of payment and the tax components of your balance.
- Offsets
- Some offsets may reduce the tax payable by older Australians and people receiving certain super income streams. Eligibility depends on your circumstances.
- Levies
- The Medicare levy generally applies to taxable income, with reductions or exemptions available in some situations.
- Financial year rules
- Rates, thresholds and offsets are set for each financial year. A result is only meaningful alongside the year it applies to.
The estimator
Versioned rules, clear limits.
Our tax tool will compare scenarios using rules versioned by financial year, and will list its assumptions and exclusions. When it does not have enough information, it will explain why rather than produce a misleading figure.
Official guidance