Author Topic: Understanding tax on super and non super monies  (Read 477 times)

Latestarter55

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Understanding tax on super and non super monies
« on: February 27, 2018, 02:54:35 AM »
I think I'm right in saying monies withdrawn from super in retirement are tax free (for the moment). Current income tax thresholds say that income (non super) is free of tax up to $18k.

That said, does that mean I could receive up to $18k from dividends for example outside of super AND withdraw say $22k a year from my super and pay no tax ?. OR is it that even though the super funds are tax free, they are still seen as income and the $18k from the dividends are now taxable ?

mjr

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Re: Understanding tax on super and non super monies
« Reply #1 on: February 27, 2018, 01:29:49 PM »
The former. Money from super is tax free and doesn't impact your regular income tax-free threshold.

Latestarter55

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Re: Understanding tax on super and non super monies
« Reply #2 on: February 27, 2018, 02:33:57 PM »
mjr ... thanks .... and its the correct answer :-)

marty998

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Re: Understanding tax on super and non super monies
« Reply #3 on: March 09, 2018, 05:19:29 PM »
People think since they are forced to withdraw a certain % from their super once they start a pension then they MUST spend it all.

Blind spot is not realising that you can still invest outside super at any age...

deborah

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Re: Understanding tax on super and non super monies
« Reply #4 on: March 10, 2018, 02:36:09 AM »
Second blind spot is that you can still invest it in super until you are 65 anyway. Withdrawing it from super and immediately putting it back can have additional benefits.