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How tax is deducted?

Contributions to Super Division

The tax treatment of your one-off, direct deposit and direct debit contributions will be based on the contribution type. Tax of 15 per cent on taxable contributions will be deducted from your Cash Account either at the time of the contribution or, in the case of personal deductible contributions, after we have received your deduction notice.

Income earned in Super

Tax of 15 per cent will be deducted from your Cash Account when distributions, dividends or income payments are processed.

If we subsequently establish that the tax payable in respect of these amounts is less than 15 per cent, or that a capital loss is attributable to your investments which can be offset against such gains, we may adjust the amount of tax deducted from your Cash Account during our end of year tax processing.

Withdrawals from Super

When you withdraw or rollover all or part of your account, we will deduct an estimate of capital gains tax of up to 15 per cent. If you make a partial withdrawal and we subsequently establish that the capital gains tax payable is less than 15 per cent, or that a capital loss is attributable to your account which can be offset against such gains, we will credit the surplus tax to your Cash Account. This calculation forms part of the annual taxation adjustments (refer below for more details).

PAYG withholding

We may be required to withhold PAYG tax on any benefits paid from the Fund to you. The amount of tax withheld will depend on the type of benefit and your age. If you are aged 60 or more at the time you receive a benefit, no tax will be withheld.

If you have more than one pension account you should complete a separate tax file number declaration for each pension. This allows us to determine the amount of tax that is required to be withheld from your pension payments. You can only claim the tax-free threshold on one pension account. However, no tax file number declaration is needed if you are aged 60 or more when you begin receiving pension payments.

Deductible expenses in Super

The Fund may claim a tax deduction on some of the expenses debited from your Cash Account. If this is the case, your Cash Account will be credited for the tax effect of any tax deduction claimed in respect of those expenses.

Franking credits

Provided your account remains open during our end of year tax processing you will be able to utilise your franking credits applicable to your investment distributions/dividends. The benefits of franking credits will be allocated to your account as part of this tax process (refer below for more details).

Stamp duty

Stamp duty, where payable on in specie transfers into your account, will be debited from your Cash Account at the time of transfer.

Calculating tax at your individual level

Our Fund tax accounting procedures seek to ensure that the tax liability is borne equitably between members, having regard to the particular investments chosen by each member.

For example, for most investments available through your account, tax is not paid at the investment option level and superannuation funds that invest in them may be liable for:

  • tax at 15 per cent on any taxable income distributed to them, and
  • tax of up to 15 per cent on any capital gain distributed to them or arising from the sale of the asset.

If you have selected Macquarie Life insurance cover through your account, the Fund may be able to claim a tax deduction for part or all of the premium. Where this is the case, your Cash Account will be credited for the tax effect of any tax deduction claimed in respect of those insurance premiums.

Annual taxation adjustments

The annual taxation adjustments are processed for the tax year ending 30 June and are completed only after the superannuation fund's tax refund has been received from the ATO. If you close your accounts prior to this annual processing being completed you will not receive the benefit of any such tax adjustment. Should you move from Super Division to Pension Division during the year (and close your super account), the taxation adjustment will apply to both accounts, provided at least one account remains open. For further information please speak with you adviser.