What is the ‘Contribution Tax Offset’?


The Contribution Tax Offset is an adjustment to your benefit when you take it from the Scheme. It is a way of allowing for changes to the taxation of the Scheme that happened on privatisation.
  • So are benefits lower now?
  • What were the changes to the Scheme?
  • So how did the tax on lump sum benefits change?
  • What about pensions?
  • So the tax on benefits went down, but why is the Contribution Tax Offset needed?
  • How does it work?
  • The main thing to remember is that the offset will not leave you worse off after tax at the time your benefit is paid.
  • What benefits does this apply to?
  • Does the Contribution Tax Offset lessen the value of the indexation of pensions?
  • But if pensions are being increased by 4%, and your gross pension was reduced, aren’t you losing out?
  • What are the options if you don’t like the calculation of the tax offset?

Where is more information available?


You can talk to the Scheme office on 8404 5707, or via email on inquiries@electricsuper.com.au.

We recommend that you put your queries in writing, as the matter is complex, and this prevents misunderstandings.

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