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When you take your retirement benefit as a Lump Sum this means you withdraw a cash amount from RBF or you rollover your benefit to another superannuation fund. You can take your retirement benefit as a Lump Sum if you are a member of RBF and you have:
If you invest your Lump Sum in the RBF Investment Account you *:
- Can access RBF's strong long-term investment returns.
- Pay no entry fees, exit fees or commissions.
- Pay low administration fees and investment management fees.
- Can use Member Investment Choice.
- Have flexibility and control over your money.
- Can continue to invest your money in a concessionally taxed environment.
- Can ensure any remaining money is passed to your spouse or estate.
- Can purchase an RBF Allocated Pension
*Conditions apply, please contact us.
How will my lump sum be taxed?
How your lump sum benefit is taxed will depend on your age, how much super you have already accessed, and the source of the entitlement.
If you are above age 60 when you receive a lump sum benefit from the RBF Investment Account, TASSS or SFCSS, the benefit will be tax exempt. If you are under age 60 when you withdraw a lump sum, you will receive the first $145,000* tax free. Any amount withdrawn above that limit while you are under age 60 will be taxed.
If you receive a lump sum benefit from the Contributory Scheme your benefit will be taxed - even after the age of 60.
Tax will be payable on the employer component of the Contributory Scheme benefit, which can make up as much as 70% of the total benefit. This represents the unfunded employer component of the final benefit on which tax has never been paid. After you reach age 60, you will pay a lower rate of tax on Lump Sum withdrawals.
The remaining employee-funded component of the Contributory Scheme benefit will be tax-free after age 60.
Members should discuss how their benefit will be taxed prior to making a withdrawal.
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