About Us: Fees & Taxes

Fees

For a complete outline of the fees and charges that apply to each of Prime Super's membership categories, please see the appropriate Product Disclosure Statement.

Tax

Taxation of superannuation can be very complicated. The following summary is only a very broad and basic outline of how superannuation taxed, and does not take into account your individual circumstances. For a more detailed outline of how tax affects your superannuation, you should read the PDS for the category of Prime Super that you are a member of, or consult a professional taxation adviser. You may also phone the ATO's Super Helpline on 13 10 20.

Contributions tax

A tax of 15% is paid by the Fund (and deducted from your super account at the time the contribution is made) on:

• contributions your employer makes for you
• any contributions paid by your employer from your pre-tax salary (including contributions made through a salary sacrifice arrangement), and
• any contributions you personally make for which you received a tax deduction (known as deductible contributions).
• No tax is paid on contributions you make from income on which you have already paid tax.

In addition to the contributions tax, the Contributions Surcharge may also apply, if your adjusted taxable income is above a certain amount ($94,691 in the 2003/2004 financial year, and indexed each year as at 1 July). The surcharge phases in above this level, and reaches a maximum of 15% at an income of $114,981 (again, this is for the 2003/2004 financial year, and indexed each year as at 1 July). The Federal Government has declared its intention to remove the surcharge from 1st July 2005.

Tax on investment earnings

The Fund's investment income is taxed at a maximum rate of 15%.

Tax on benefits

Taxation of benefits is very complicated, and your taxation position will vary depending on your individual circumstances (eg. it will depend on things such as when contributions were made, the size of your benefit, etc.). You are strongly encouraged to seek professional taxation advice regarding the taxation of superannuation benefits.