Tax and super

Your MilitarySuper benefit comprises your member, ancillary and employer benefits; these are either taxed or untaxed components (or a combination) as explained below:

  • Your member benefit (comprising your member contributions and scheme earnings on these amounts) is a ‘taxed’ component because it is money paid (in the form of a lump sum amount) from a taxed source, unless you are a former DFRDB member (in this case, interest accrued from your DFRDB contributions and any pre-1983 member contributions will be paid from an ‘untaxed’ source).
  • Your ancillary benefit (comprising any voluntary contributions and transfers you make such as additional personal contributions) is also a ‘taxed’ component.
  • Your employer benefit (determined by a set formula which is based on your length of membership and final average salary) is made up of both ‘taxed’ (funded) and ‘untaxed’ (unfunded) components; the taxed element is your fortnightly employer contributions made by the Department of Defence to MilitarySuper (also called known as your ‘productivity contribution’, equal to 3% of your fortnightly salary); the untaxed component is your total employer benefit less the taxed component.