Calculator
Super Withdrawal Tax Calculator (Gross Distribution)
Super Withdrawal Tax Calculator (Gross Distribution)
Withdrawal Details
From your super statement's taxable/tax-free split. Taxable element = withdrawal − tax-free element.
Your Position
Most industry and retail super funds are taxed sources. Public sector and some older funds may have untaxed elements.
Net After-Tax Receipt
$123,000
Withdrawal Tax Analysis
At age 58 you are under preservation age, so the $135,000 taxable element is taxed at a headline 20% lump-sum rate — which includes the 15% contributions tax already paid inside the fund. The additional tax is $27,000 (an effective 18.0% of the total withdrawal), leaving you with $123,000. The $15,000 tax-free element escapes tax entirely. Waiting until age 60 removes this tax completely for taxed funds.
Educational tool. Lump-sum rates shown are for taxed elements from taxed funds under current ATO rules; untaxed elements, defined benefit funds, and transitional arrangements can change the outcome. Tax-free thresholds and age rules are indexed and change over time. Not tax advice — confirm amounts with your fund and a registered tax agent.
What Tax Applies to a Super Lump Sum?
When you take a lump sum out of superannuation before age 60, part of it may attract tax — and the amount depends on your age, the components inside the withdrawal, and whether the fund was a taxed or untaxed source. This is the gross-distribution question that surprises many Australians: super contributions grew in a low-tax environment, but accessing them early is not automatically tax-free. The ATO splits every withdrawal into a tax-free element (from after-tax and certain older contributions) and a taxable element, then applies age-based lump-sum rates to the taxable portion only. The age thresholds are everything. From 60 onwards, lump sums from taxed funds are completely tax-free — one of the most generous features of the Australian retirement system. Between preservation age and 59, the taxable element is taxed at a 17% headline rate. Below preservation age, lump-sum access is very limited and taxed at 20%. Untaxed elements — mostly from public sector or older defined benefit funds — are taxed much more harshly, up to 45%. Getting the split and the age band right can be worth tens of thousands of dollars, which is exactly why this calculator asks for the element composition from your super statement rather than assuming it. For most people, the practical question is not 'should I withdraw?' but 'when should I withdraw, and how should the taxable and tax-free elements be apportioned?'
Components, Age Bands, and the 15% Credit
The calculation starts with the component split: your super statement shows a tax-free element and a taxable element. A withdrawal draws proportionally from both, so a $150,000 withdrawal from a fund that is 10% tax-free contains $15,000 tax-free and $135,000 taxable. Only the taxable element is ever subject to lump-sum tax, and even then only below age 60. The age-band rates apply to the taxable element of a taxed source: 17% between preservation age and 59, 20% below preservation age, and zero from 60 onwards. These headline rates already include credit for the 15% contributions tax the fund paid when the money went in, so there is no double counting. The net receipt is simply the withdrawal minus tax on the taxable element. For untaxed-source funds, the rates jump dramatically — generally 45% below 60 because the fund never paid the 15% contributions tax — which is why the taxed/untaxed toggle changes the result so sharply. The tax-free element passes through untouched at every age, which is why building up after-tax (non-concessional) contributions can be a deliberate strategy for pre-60 retirees who expect to access their super early.
Expert Insights
The Age-60 Line Is Worth Waiting For
The difference between a 59 and a 60 withdrawal can be enormous. A $200,000 taxable element withdrawn at 59 attracts $34,000 of tax at 17%; the same withdrawal a few months after turning 60 attracts zero. For anyone within a year of 60 who can manage cash flow, sequencing the withdrawal after the birthday is one of the highest-return timing decisions available. This calculator makes that comparison concrete — run it at both ages before deciding when to take the money.
The Element Split Is Negotiable at Withdrawal
When you take a lump sum from a taxed fund, the default ATO ordering draws tax-free elements first, then taxable elements up to the low-rate cap, then the remainder. In practice many funds will let you request the most tax-effective split — withdrawing from accounts with larger tax-free proportions first, for example. If you have multiple super accounts with different component mixes, consolidating or sequencing withdrawals to maximise the tax-free share is worth a conversation with your fund. The difference can be five figures on a large balance.
Untaxed Elements Change the Entire Calculation
If any part of your balance comes from an untaxed source — typically public sector defined benefit funds, some older corporate funds, or certain insurance components — the rates jump to 45% on that element below 60. The calculator's taxed/untaxed toggle surfaces this instantly. Many Australians assume all super is treated the same; discovering your balance includes an untaxed element after you have withdrawn is an expensive surprise. Check your statement for the taxed/untaxed breakdown before planning any pre-60 withdrawal.
Actionable Tips
- 1
Get the Component Split Before You Plan
Log into your super fund's online portal and find the current balance breakdown: tax-free element, taxable element (taxed), and taxable element (untaxed). Enter the taxable figure into this calculator rather than the whole balance, because most balances contain a tax-free portion from after-tax contributions. If the split is uncertain — older funds and rollovers can be opaque — call the fund and ask directly; accuracy here is worth real money.
- 2
Model Both Ages Before Withdrawing
If you are aged 55–59 and considering a lump sum, run this calculator at your current age and at 60. If the cash flow is manageable, the tax saving from waiting almost always justifies the delay. Where waiting is not possible, consider whether a partial withdrawal (drawing mainly from the tax-free element, if your fund allows targeted withdrawals) reduces the tax, then withdraw the rest later. Sequencing matters as much as timing.
- 3
Coordinate the Withdrawal With Your Other Income
Super lump sums are taxed separately from your ordinary income and do not push your marginal rate up — a common misconception. However, the withdrawal still affects Centrelink assessments, Medicare levy surcharge income tests, and child support calculations in some circumstances. If you are also working in the year of withdrawal, confirm with a tax agent how the lump sum interacts with your other income and offsets before the money moves.
Real-World Examples
Janine Timed Her Withdrawal to the Month
Janine, 59 and seven months, wanted to access $220,000 of super to clear her mortgage. Her taxable element was $190,000. Running the calculator showed a 59-year-old withdrawal would attract about $32,300 of tax at 17%. She arranged temporary bridge finance and waited five months to withdraw at 60 — tax-free. The bridge interest cost roughly $1,800. The timing decision was worth over $30,000.
Marcus Split His Withdrawal Across Two Accounts
Marcus had two super accounts: one with an 85% taxable element, one with only 30% taxable. He needed $300,000. Withdrawing from the high-tax account first would have cost around $28,000 in tax. His fund allowed him to withdraw from the low-taxable account first, paying tax on only $90,000 at 17% — about $15,300 total. The difference was roughly $13,000, saved by checking component splits before requesting the withdrawal.
Fiona Discovered an Untaxed Element Too Late
Fiona, 57, withdrew $60,000 from a fund she assumed was fully taxed. The statement revealed a $22,000 untaxed element from a public sector rollover made years earlier. That element was taxed at 45% rather than 17% — costing her an extra $6,000 she had not budgeted for. The lesson she passes on: always check the taxed/untaxed breakdown before planning a withdrawal, especially if you have ever held a government or defined benefit fund.
Glossary of Terms
- Taxable Element
- The portion of a super withdrawal that is subject to lump-sum tax — typically concessional contributions and fund earnings. Shown separately on your super statement.
- Tax-Free Element
- The portion of a super withdrawal that is never taxed — typically after-tax (non-concessional) contributions and certain pre-1994 amounts. Passes through untaxed at every age.
- Untaxed Element
- A taxable element from a source that never paid the 15% contributions tax — mostly public sector or defined benefit funds. Taxed at up to 45% below age 60.
Frequently Asked Questions
Everything you need to know about this topic.
Ivy Sinclair-Wren
Financial Chaos Analyst
Ivy Sinclair-Wren is a Financial Chaos Analyst covering investing, AI, wealth psychology, and the emotional consequences of opening finance apps during market crashes. Based in Melbourne, she specializes in demystifying the Australian tax code and helping users navigate the intersection of spreadsheet logic and human irrationality.