scheme of taxation?

Answer 1

Taxation of scheme benefits
Background

The Income Tax Assessment Act provides for the taxation of most lump sum and pension payments received from superannuation schemes.
Lump sums

Lump sum superannuation payments that are subject to taxation are known as eligible termination payments (ETPs).

In the CSS, nearly all lump sum payments you don't roll over on leaving the scheme, will be taxed. Tax will be automatically deducted from the payment before you receive it.

If you are rolling over any of your benefit to another superannuation scheme or an approved deposit fund (ADF), you will be provided with an ETP Rollover Statement giving all relevant details of the payment. You will also receive a Payment Summary (previously called a Group Certificate) for any payment made to you.

The rules affecting the taxation of lump sum payments, and their treatment by receiving rollover institutions, are complex and are subject to change. If you would like to read more about how your scheme benefits are taxed, download the Taxation and your CSS Benefit brochure.
Pensions

CSS pensions are subject to normal PAYE tax deductions (the same way your salary is subject to tax assessment). Each fortnight a tax instalment is deducted from your pension. You are also issued a Payment Sumary (previously called a Group Certificate), (or a statement of earnings if no tax has been deducted from your pension) each year.
For more information

Please refer to the following leaflets for more information:

* Superannuation Contributions Surcharge
* Tax and your CSS Benefit