Tax and your UniSuper retirement income account

If you’re under 60 and have a Flexi Pension account, your income stream payments and lump-sum withdrawals may be subject to tax.

The amount of tax you pay on your income stream payments depends on your age. In addition, there are different tax rates depending on whether you received a lump-sum withdrawal/s or regular income stream payments.

Note: Withdrawals that include a tax-free component will not be subject to tax on the portion that is attributable to the tax-free component.

Making regular income payments under your preservation age

Generally, you’ll pay tax on your income stream payments at your marginal tax rate (including Medicare levy).

For more information about your preservation age, read our article When can I access my super for retirement?

Making regular income payments between your preservation age and 60

You’ll pay tax on your income stream payments at your marginal tax rate, including Medicare levy, less a 15% tax offset.

Different rules apply for Beneficiary Income Stream Flexi Pensions accounts, so check the Flexi Pension Product Disclosure Statement (PDF, 2.1 MB) if you have this type of account.

Making lump-sum withdrawals under your preservation age

You’ll pay tax on your withdrawal at a rate of up to 22%, including the Medicare levy.

Making lump-sum withdrawals between your preservation age and 60

You won’t pay tax on your withdrawal up to the low-rate cap amount, which is $245,000 for the 2024-25 financial year. The low-rate cap is a lifetime limit, so each withdrawal you make takes you closer to the cap. Once you go above the cap, you’ll pay tax at 17% (including the Medicare levy), or your marginal tax rate, whichever is lower.

If we don’t have your Tax File Number (TFN), you may pay more tax. You can add or update your TFN by logging in to your online account.

Generally, no tax applies to investment earnings for Retirement Phase and Beneficiary Income Stream Flexi Pension accounts.

However, generally a 15% tax applies to investment earnings for Transition to Retirement Flexi Pension accounts.

Remember, you’ll also pay tax on super contributions and investment earnings in your super account (i.e. your accumulation account). Discover more about how your super is taxed.