How much tax you pay on your super contributions and withdrawals depends on:

• your total super amount
• your age
• the type of contribution or withdrawal you make

If you inherit someone’s super after they die, the person’s super fund pays you a super death benefit. You may have to pay tax on some of this benefit.

Because everyone’s situation is different, it’s always best to get advice about tax matters. Contact the Australian Taxation Office (ATO) or speak to us.

How super contributions are taxed

Money paid into your super account by your employer is taxed at 15%. So are salary-sacrificed contributions, also known as concessional contributions.

There are some exceptions to this rule:

• If you earn $37,000 or less, the tax is paid back into your super account through the low-income super tax offset (LISTO) .
• If your income and super contributions combined are more than $250,000, you pay Division 293 tax, an extra 15%.

If you make contributions from your after-tax income – known as non-concessional contributions – you don’t pay any contributions tax.

See the ATO website for more information about how much tax you’ll pay on super contributions.

Smart tip: To avoid paying extra tax on your super, make sure you give your super fund your Tax File Number.

How super investment earnings are taxed

Earnings on investments within your super fund are taxed at 15%. This includes interest and dividends, less any tax deductions or credits.

How super withdrawals are taxed

The amount of tax you pay depends on whether you withdraw your super as:

• a super income stream, or
• a lump sum

Everyone’s financial situation is unique, especially when it comes to tax. Make an informed decision. We recommend speaking to us before you decide to withdraw your super.

Super income stream

A super income stream is when you withdraw your money as small regular payments over a long period of time.

If you’re aged 60 or over, this income is usually tax-free.

If you’re under 60, you may pay tax on your super income stream.

Lump sum withdrawals

If you’re aged 60 or over and withdraw a lump sum:

• You don’t pay any tax when you withdraw from a taxed super fund.
• You may pay tax if you withdraw from an untaxed super fund, such as a public sector fund.

If you’re under age 60 and withdraw a lump sum:

• You don’t pay tax if you withdraw up to the ‘low rate cap’, currently $260,000.
• If you withdraw an amount above the low rate cap, you pay 17% tax (including the Medicare levy) or your marginal tax rate, whichever is lower.

If you have not yet reached your preservation age:

• You pay 22% (including the Medicare levy) or your marginal tax rate, whichever is lower.

When someone dies

When someone dies, their super is usually paid to their beneficiary. This is called a super death benefit.

If you’re a beneficiary, the amount of tax you pay on a death benefit depends on:

• the tax-free and taxable components of the super
• whether you’re a dependent for tax purposes
• whether you take the benefit as an income stream or a lump sum

Contact us today if you have any questions.

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/how-super-works/tax-and-super

Before you retire

If you’re planning to retire, you need to consider:

• your age, including if you have reached your preservation age
• your super
• how much tax you will pay on amounts you receive
• if good leaver conditions apply if you are part of an employee share scheme
• if the retirement capital gains tax concession applies if you sell your small business.

Special rules apply if you receive an employment termination payment, genuine redundancy payment or payments from an approved early retirement scheme.

If you’re leaving your job for other reasons, such as termination, change of industry or leaving Australia, the tax on payments you receive may be different.

Payments leading into retirement

If you receive a lump sum payment from your employer for unused annual or long service leave, you may pay tax on it at a lower rate than your other income. Your employer will report any lump sum payments at either ‘Lump sum A’ or ‘Lump sum B’ on your income statement or payment summary. You will need these details when you prepare your tax return.

A genuine redundancy payment is a payment made to you usually because the job you have been doing has been abolished. These payments are tax-free to a limit depending on the number of years you worked for that employer.

Your employer may offer staff an early retirement scheme to encourage certain groups of employees to retire early or resign. You may pay less tax on payments you receive under an early retirement scheme.

After you retire

Once you retire, you can access a number of tax offsets, such as:

• seniors and pensioners tax offset
• superannuation income stream tax offset.

If you have income from an Australian superannuation income stream, you may be able to claim a tax offset if you’re:

• receiving a disability superannuation benefit
• receiving a death benefit income stream
• 60 or over.

Employee share schemes

If you are a member of an employee share scheme (ESS), you need to consider the ‘good leaver’ conditions. Good leaver conditions in an ESS may allow employees to retain ESS interests if they cease employment to retire from the workforce permanently during the forfeiture period.

Whether ESS interests acquired under an ESS with good leaver conditions are at a real risk of forfeiture will depend on the facts and circumstances. This includes how the ESS operates and the employee’s personal circumstances.

CGT retirement exemption for small business

If you are selling your small business assets, the capital gains tax retirement concession may apply. The retirement concession can exempt a capital gain on a business asset, up to a lifetime retirement exemption limit of $500,000. This concession allows you to provide for your retirement.

If you choose the retirement exemption, there is no requirement to terminate any activity or cease business.

If you are under 55 years old just before you choose to use the retirement exemption, you must make a personal contribution equal to the exempt amount to a complying superannuation fund or a retirement savings account.

Speak to us if you have any questions.

Source: ato.gov.au June 2025
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/leaving-the-workforce/planning-to-retire

Stay up to date with what’s happened in the Australian economy and markets over the past month.

Australia’s economy remained under pressure in October. Investors sharply pared back future rate-cut bets after inflation data came in higher than expected.

News of the higher-than-expected inflation numbers was followed by the biggest daily fall in the Australian share market in two months.

Wall Street ended the month subdued over suggestions of no further rate cuts expected this year but there was some optimism about US-China relations.

Click here to view our update.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

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Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Wealth Advisers Pty Ltd (ABN 35 994 727 125) as a Corporate Authorised Representative (1316489) of Integrity Financial Planners Pty Ltd (AFSL 225051). Integrity One Wealth Advisers Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

We plan for holidays, home renovations, and retirement but we’re less likely to plan for the unexpected. Life insurance is one quiet but powerful way to protect the people you love from financial stress if something happens to you.

Whether you’re raising a family, supporting a partner, or building a business, life insurance helps ensure that your legacy includes stability rather than uncertainty. It can be a powerful tool for your family’s financial resilience.

Life insurance is designed to provide a lump sum payment to your nominated beneficiaries when you die or, in some cases, are diagnosed with a terminal illness. The payout can help ensure that your loved ones aren’t left scrambling to cover costs such as mortgage repayments or rent, outstanding debts, funeral costs and living expenses during an already emotional time.

It can be particularly helpful if:

• you have dependents who rely on your income
• you’re the primary breadwinner or contribute significantly to household finances
• you have joint debts with a partner
• you want to leave a legacy or charitable gift
• you’re a business owner

Even if you’re young and healthy, life insurance can be affordable and locking in a policy early may mean lower premiums over time.

How much life insurance do you need?

There’s no one-size-fits-all answer, but a good starting point is to ask yourself: “If I were gone tomorrow, what financial gaps would my family face?”

Here’s a simple framework to help you estimate your coverage needs:

1. Calculate your financial obligations

Start by listing the major expenses your loved ones would need to cover:

• Mortgage or rent: how much is left to pay?
• Living costs: groceries, utilities, transport, childcare
• Children’s education: school fees, uniforms, university costs
• Debts: credit cards, car loans, personal loans
• Funeral and legal costs: can be around $10,000–$20,00

Add these up to get a baseline figure.

2. Consider your income

How long your family would need financial support. Multiply your annual income by the number of years you’d want to replace it, for example, five to 10 years.

If you earn $100,000 and want to provide seven years of income, that’s $700,000.

3. Factor existing assets

Do you have savings, superannuation, or investments that could help cover costs? Subtract these from your total needs to avoid over-insuring.

4. Account for inflation and future needs

Costs rise over time, and your children’s needs will evolve. It’s wise to build in a buffer of say, 10-20% to future-proof your coverage.

5. Review regularly

Your life changes, and so should your insurance. Marriage, children, mortgages and career shifts can all affect how much cover you need. We can help with a regular review to ensure your policy stays aligned with your goals.

Different types of life insurance

There are a few key types of cover to be aware of:

• Term life insurance pays a lump sum if you die or are diagnosed with a terminal illness.
• TPD (Total and Permanent Disability) covers you if you’re permanently unable to work due to illness or injury.
• Trauma insurance pays a lump sum if you’re diagnosed with a serious illness like cancer or stroke.
• Income protection replaces a portion of your income if you’re temporarily unable to work.

Life insurance in super

For many Australians, life insurance is already tucked away inside their superannuation fund. Most super funds automatically include a basic level of life cover and TPD insurance, and some also offer income protection.

Premiums are typically lower than retail policies and are deducted from your super balance. In many cases, you won’t need to complete a health check to get default cover, and the premiums may be more tax-effective depending on your circumstances.

While insurance in super is convenient, it’s not always comprehensive and it’s not guaranteed to suit your needs in the long term.

If you’re relying on insurance through super, it’s a good idea to review your fund’s policy and consider whether it’s enough especially if your circumstances have changed.

If you’re unsure where to start, we’re here to guide you through the options, crunch the numbers, and make sure your policy reflects your values and responsibilities

Take a sec to check

Scammers aim to take advantage of weak security and plan on you being distracted with everyday life.

To keep yourself safe:

• Stop – Don’t share your personal information such as your myGov sign in details, Tax File Number (TFN), or bank account details, with anyone unless you trust the person and they genuinely require your details.
• Check – Take a sec to check. Ask yourself could the message or call be fake? Is it really the ATO contacting you?
• Protect – Act quickly if something feels wrong or you’ve noticed suspicious activity on your ATO accounts.

Always be aware of what information you share. If a scammer gets your personal information they can use it to access your bank account, sign in to your myGov account, or steal money and commit fraud in your name.

If an interaction doesn’t feel right, don’t engage. You should either:

• go to Verify or report a scam
• check our latest Scam alerts
• or phone the ATO on 1800 008 540 to check.

If you are the victim of a data breach and your personal information has been accessed, go to Data breach guidance for individuals.

Your personal information

To commit identity crime or fraud, scammers only need some of your personal information. This may include:

• full name
• date of birth
• current address
• myGov and ATO online login details
• TFN
• passwords
• bank account numbers
• credit card details
• driver’s licence details
• passport details.

They can use this information in a variety of ways, such as to commit refund fraud in your name, access your myGov account to steal your tax refund, steal your superannuation or sell your identity to organised crime groups on the dark web or via other means.

If you suspect your personal information, such as your TFN, has been stolen, misused or compromised, phone the ATO as soon as possible on 1800 467 033 between 8:00 am and 6:00 pm Monday to Friday. They will investigate and can place extra protection on your ATO account.

Consequences of identity theft

If your identity is stolen the consequences can extend far beyond immediate financial loss (such as your super being cleaned out or refund fraud committed in your name) and lead to significant personal and professional challenges. Such as:

• impact to your credit rating, making it difficult to be approved for a loan or credit card
• making it difficult for you to prove who you are and get new identity documents
• damage to your reputation, potential for access to your social media accounts and spreading misinformation in your name
• it can also take victims of identity theft years to recover their identity and undo any damage

The emotional toll is also significant. Victims of identity theft often experience stress, anxiety and a sense of vulnerability knowing that someone else is capable of exploiting their personal information at any moment.

Protect yourself

Here are some top tips to keep your personal information safe:

• Don’t give out your personal information to anyone unless you trust the person and they genuinely require your details.
• We never send unsolicited emails or SMS with QR codes or links to an online portal. Scammers often use these methods to steal your personal information or plant malware on your devices. If you receive a notification asking you do this, it is a scam.
• Always access online services by directly typing the URL into a browser, not by clicking on a link.
• Protect your TFN – only give your TFN to organisations or people who have a legitimate need for it, such as your tax agent, current employer or bank. It’s important to verify that the person you’re giving your TFN to is who they say they are.
• Never share your passwords. Consider using passphrases instead of passwords, a password manager can help you generate or store passphrases. You should also consider updating them regularly.
• Enable multifactor authentication. If scammers obtain your password, it will be significantly harder for them to access your account.
• Keep your devices up to date. Scammers can use viruses, malware and programs to access or steal your personal information on your devices including phones, computers and tablets.
• Use your Digital ID (such as myID), set to the strongest level you can achieve, to access ATO online services through myGov.

To learn more about myID visit How to set up myID.

For top cyber security tips, visit Top cyber security tips for individuals. You can also set up Voice authentication to help protect your tax account and reduce the chance of scammers accessing it.

More information on securing your devices is available from the Australian Cyber Security Centre.

How the ATO keeps your information safe

They take the security and privacy of your personal information very seriously and have steps in place to make sure your data and online transactions are secure and safe.

They keep your personal information safe by:

• confirming your details when you contact them
• having a range of systems and controls in place to make sure your data and transactions are secure
• logging access to your personal information (to help the ATO identify any unusual behaviour).

To help you stay safe online, they:

• won’t ask you for your TFN or bank details via return email, SMS, or on social media
• won’t give your personal information to anyone without your consent, unless the law permits
• won’t communicate with you on behalf of another government agency or ask another government agency to represent them.

How they communicate with you

They may use SMS or email to ask you to contact them, but they will never send an unsolicited message with a link asking you to return personal information or log in to their online services.

The ATO has a Facebook, Instagram, X and LinkedIn account, but will never use these platforms to ask you to provide personal information, documentation or ask you to make payments.

Source: ato.gov.au May 2025
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/newsroom/smallbusiness/ .

If you’re a first home buyer in today’s market, you’ve likely been reading about interest rate cuts – finally, some good news! But then, just as you’re getting hopeful, you check house prices again and… yikes. Affordability is still delivering a cold splash of reality as property prices are predicted to increase over the next year.

If you’re feeling like someone forgot to give you the key, it might be time to look at which path you could tread to your first purchase.

Leverage government support (it’s there for a reason!)

There are a number of schemes and incentives aimed at helping first home buyers – both federally and through the states and territories. Here is a quick overview:

• First Home Guarantee – Allows eligible buyers to purchase with as little as 5% deposit, without paying Lenders Mortgage Insurance (LMI).
• First Home Super Saver Scheme – Use your super to save for a deposit with tax advantages.
• Regional First Home Buyer Guarantee – For eligible buyers purchasing in regional areas and only 5% deposit is required.
• Family Home Guarantee – Allows eligible single parents and single legal guardians of at least one dependent to purchase a home with a deposit as little as 2 per cent.
• A grant or support from your state or territory government – Many states and territories offer grants as one-off payments for eligible buyers purchasing or building a new home as well as reduced or zero stamp duty for first home buyers, often based on the value of the property.

Each state offers its own unique cocktail of grants and concessions, so it’s worth checking out what’s available and we can help you weigh up which one might be the most suitable for your circumstances.

The Bank of Mum and Dad

Still the fastest-growing lender in Australia, parental support is more common than ever. More than 60% of first home buyers in Australia receive some form of financial assistance from their parents to buy their first home.

Assistance can be in the form of a gift, a loan or going guarantor. If your folks are open to helping financially, it can make a huge difference.

That said, not everyone has this option, and it’s worth remembering that family money can sometimes come with strings attached.

Consider co-buying with a friend

If you are single, it can be particularly hard to get into the market and buying with a friend can make owning a home more affordable by splitting the deposit and the repayments down the middle. Plus, sharing ongoing costs like maintenance and bills can take some pressure off your budget.

That said, things can get tricky if one of you wants to sell early, or if your priorities suddenly diverge. Legal and financial clarity is essential, so if you go down this path, make sure you’ve got a solid agreement in place and some honest conversations under your belt.

Rentvesting – buy where you can afford, live where you love

Recent research found 54% of first home buyers were considering ‘rentvesting’ to get into the property market, so rentvesting is certainly gaining traction. The idea is simple: you buy in a more affordable area and rent where you want to live.

It’s not the traditional white-picket-fence dream, but it can be a clever way to build equity while maintaining lifestyle flexibility.

Compromise to achieve your dream

We know you’d love a three-bedder, walking distance to your favourite café, with a study, backyard, AND water views. But unless you’re sitting on a trust fund, you’ll probably need to adjust your wish list. The three big levers are:

• Location – Look at up-and-coming suburbs or regional areas.
• Condition – A fixer-upper can be a long-term win if you’re handy (or handy with a budget).
• Size – A smaller footprint or apartment can be a smart first step.

Think about your priorities and use the levers above to work within your budget. If you’re still feeling like the great Australian dream is out of reach, take a breath. There are many ways to get into the market, and a little creative thinking can go a long way.

We help first home buyers like you find your own way in, every day. So, if you’re ready to chat about what your journey could look like, come talk to us.

If you have any questions or need any information please give us a call on 039723 0522.