Tax and super

Your PSS benefit comprises your member, productivity and employer-financed components; these are either taxed or untaxed components as explained below:

  • Your member component (comprising your super contributions plus scheme earnings) is a ‘taxed’ component because it is money paid from your after-tax salary directly to PSS to be invested for your retirement
  • Your productivity component (comprising your employer’s productivity contributions since 1 July 1990 less 15% contributions tax, plus scheme earnings) is a ‘taxed’ component because it is money paid directly to PSS; however, productivity contributions paid before 1 July 1990 are an ‘untaxed’
  • Your employer-financed component (determined only when you leave PSS) is the balance remaining after your member and productivity components are deducted from your total lump sum benefit. It is ‘untaxed’ because it is paid from the Consolidated Revenue Fund (CRF), not PSS, which means it is treated as coming from an ‘untaxed source’ for tax purposes.