Taxation of investment earnings
From 1 July 2017, the Federal Government introduced changes on transition to retirement (TTR) pension accounts.
Investment earnings tax on TTR pensions in the pre-retirement phase began attracting tax of up to 15%. Previously they weren’t taxed.
When your account moves to retirement phase, the investment earnings will be tax-exempt and your balance will count towards the limit on retirement products. Find out more about this limit.
What is a TTR pension, or pre-retirement pension?
A TTR pension, also known as a pre-retirement pension, allows you to access your super while you’re still working, once you’ve reached your preservation age.
What are the conditions of release?
The conditions of release which allow investment earnings to be tax-exempt and your TTR pension to move to retirement phase are:
- Reaching age 65
- Terminal illness
- Permanent incapacity
You should notify us if you meet a condition of release, so we can move your account to retirement phase. When you reach age 65, we’ll do this automatically for you. Once in retirement phase, the balance will count towards the limit on retirement products. Find out more about this limit.
For more information about these changes, contact your financial adviser, or call us on 132 652 between 8am and 6pm (AEST/AEDT), Monday to Friday.
If you’re considering transitioning into retirement we offer a pre-retirement pension through the following products:
Visit our Retirement page to find out more about how you can reach your retirement goals.