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How is Tax Collected from Your Super Fund?


Feeling short changed?
If you hold an Industry super fund, it is likely it is being taxed at fund level.  This basically means that all members share the tax deductions equally regardless of their investment.

Each time your employer pays into your super fund, contributions tax of 15% is deducted and withheld by the fund.  This is then paid to the tax office at a later date.  Until then it is retained by the fund - it doesn’t sit in your account and earn anything. 

Your fund may have access to some deductions which can reduce the 15% down.  Quite often any money the fund saves is retained by the fund.  Either way, the process is not transparent.

The Flip Side: Retail Funds.

The funds recommended by Hindsight Wealth are retail funds and are taxed at member level.  This means that any deductions are applied to your account rather than shared across all members.  

Even more importantly is the way in which the tax is collected.  Now this is critical! When your employer pays into your fund, the entire amount is invested.  The 15% contributions tax is not withheld by the fund.  

The employer contributions are allowed to sit in your account for the full 12 months, earn profits and produce dividends for you.  Then at the end of each year the tax is deducted and with any discounts you may have applied to your fund, the final amount paid to the ATO. 

The resulting amount of tax will very much depend on how much has been contributed throughout the year.  

At worst, your fund will still have to pay some tax on your behalf.  However, it will be less than 15% due to the tax deductions applied to your individual account.  

At best, you may in fact receive a refund in your account if the deductions are enough to offset the tax payable.  As a client of Hindsight Wealth, if you log in to your account, you’ll be able to see the tax paid or received by your fund for the year.


Extra Bonus.
The whole process is transparent with Hindsight Wealth.  A one-page tax summary can be obtained from the product provider to show exactly how the tax payable, or the refund received is calculated.  This isn’t available for industry fund members.

Have you reviewed your Super lately?
Hindsight Wealth offers many ways to connect and to review your latest super statement.  

Face to Face, an online meeting at a time convenient to you, text or email a photo of your latest statement or jump in an Uber out to our Hamilton office - your return Uber is on us from Brisbane CBD to our Hamilton Office.

Book your Super Review.
Make a time in my calandar to get your super on track - the future you will be glad you did. 



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Location: level 4/33 Remora Rd, Hamilton QLD 4007, Australia

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