Member calculator
Super death benefit tax calculator: what will a non-dependant pay?
When super is paid to someone who is not a dependant for tax purposes, such as an adult child who is financially independent, the taxable component is taxed. This calculator compares two scenarios: no strategy, and a withdraw-and-recontribute strategy. Rates checked against the ATO on 31 October 2026.
Scenario 1: no strategy
| Tax-free component (0%) | |
| Taxable – taxed element (17%) | |
| Taxable – untaxed element (32%) | |
| Tax payable | |
| Net received |
Scenario 2: withdraw and recontribute
| Tax-free component (0%) | |
| Taxable – taxed element (17%) | |
| Taxable – untaxed element (32%) | |
| Tax payable | |
| Net received |
How the recontribution strategy works
While a member is alive and has met a condition of release (for example, reached 60 and retired, or turned 65), they may withdraw super as a lump sum and contribute it back as a non-concessional (after-tax) contribution. The recontributed amount becomes part of the tax-free component, so less is taxed if it is later paid to a non-dependant. An untaxed element that arises from insurance paid on death can't be recontributed in advance, so the calculator leaves it unchanged in Scenario 2.
Contribution caps and eligibility apply. Non-concessional contributions are limited by the annual cap, the bring-forward rule, your total super balance and age-based work and eligibility rules. Exceeding a cap can trigger extra tax. Withdrawals may also affect Centrelink entitlements, insurance cover inside super and estate planning. Get advice before acting.
Rates used
- Tax-free component: 0%.
- Taxable component – taxed element: maximum 15% plus 2% Medicare levy = 17%.
- Taxable component – untaxed element: maximum 30% plus 2% Medicare levy = 32%.
- Death benefits paid to a dependant for tax purposes are not taxed as a lump sum and are not covered here. Actual tax is worked out in the beneficiary's tax return; they may pay less at a lower marginal rate.
Sources: ATO, Tax on super benefits; ATO, Superannuation death benefits; ATO, Taxation of super benefits; ITAA 1997 s302-145.