Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007

Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007

What is this about?

This law imposes a special tax on certain superannuation (retirement savings) money that gets rolled over (transferred) between funds — specifically on amounts that have never been taxed before.

Who does this affect?

This primarily affects people who receive superannuation benefits from untaxed funds — most commonly public sector employees (like some government workers, police, and defence personnel) whose super was never taxed going in. When they roll over (transfer) more than a certain threshold of this money into a taxed fund, the excess amount gets hit with this special tax.

What does it actually do?

• It formally imposes the tax on "excess untaxed roll-over amounts" — the legal mechanics of how much you're taxed is set out in a separate law (the Income Tax Assessment Act 1997), but this Act is the one that actually says "yes, this tax exists and applies."
• The tax rate is calculated by taking the top personal income tax rate (found in the Income Tax Rates Act 1986) and adding 2% on top — making it a deliberately steep penalty to discourage untaxed super from slipping through without paying its fair share.
• There was a added during the "budget repair levy" years (2014–2017), meaning the tax rate was even higher for a short period.