SMSF Advice Hub

Login

Join

All The Self-Managed Superannuation Advice You’ll Ever Need

  • Home
  • About
  • News
  • Resources
    • How To Set Up an SMSF
      • [Member] Better ways to setup your fund
    • Contributions
      • Employer Contributions
      • Member Contributions
      • Contribution Limits (Caps) & Excess Contributions Tax
    • Taxation on SMSFs
      • Contributions Tax
      • Tax on Income (0%, 10% or 15%)
    • Benefits – getting your money
      • Preservation – “Hands Off!”
      • Lump sum withdrawals
      • Income Streams (Account based pensions)
  • Ask A Question
  • Members
    • Join
  • Contact

Lump sum withdrawals

Lump sum withdrawals

Lump sum withdrawals can be taken from your accumulation account or as a “commutation” of part or all of your income stream.

Lump sums have the following general characteristics:

  • they are tax free for those 60 years and over when the payment is made
  • they are tax free for those under 60 years for both the tax free component and amounts within the members lifetime low rate threshold amount
  • they are otherwise taxable

 

Before taking a lump sum withdrawal, you need to know the rules and possible seek the advice of a professional.

PAYG withholding and administrative obligations

You may have to withhold tax from benefit payments. This happens if the payment is to a member who is:

  • under 60 years old
  • 60 years old or over if the benefit is from an untaxed source.

If you have to withhold tax from a benefit payment to a member, you need to:

  • register for pay as you go (PAYG) withholding
  • obtain a Tax file number declaration (NAT 3092) from the member
  • issue a PAYG payment summary form to the member
  • lodge a PAYG withholding payment summary statement (NAT 3447) with the ATO.

SMSF Advice Newsletter

Receive the latest super fund news as it happens and stay up to date with your SMSF

Copyright © 2025 by SMSF Advice Hub. All Rights Reserved.

  • Privacy Policy
  • Terms and Conditions

Connect with us on