Were you receiving a Transition to Retirement Income Stream in 2017 or considering commencing one now? If so, you will be impacted by the new super reforms so make sure you understand them completely so that you can make the right decisions.
Previously those receiving a Transition to Retirement Income Stream (TRIS) also received tax concessions within their super fund. The earnings associated with this income stream were tax free. That of course was until the latest super reforms which will see the earnings taxed at 15%.
You may need to reconsider if there is still a benefit in continuing your TRIS. These products were designed to supplement your income while you reduced your working hours (hence the name “Transition to Retirement”) so for some of you this income stream may continue to be very useful.
But for those receiving a TRIS for the tax benefits only may decide to cease this income stream due to the reforms as they may not need to supplement their income.
Another point to consider is whether you have met a full condition of release. If so this could mean your TRIS should cease and you can commence an Account Based Pension (ABP) which continues to receive the tax concessions of 0% on earnings. If you are over 60 and have either retired or ceased an existing employment arrangement you may be eligible to commence an ABP. Contact us for a review of your personal situation before you make any decisions regarding pensions.
If you have any questions regarding the above please contact the Your Super Specialist team on 1300 039 190 or firstname.lastname@example.org
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.