Transition to Retirement Pensions

Transition to retirement pensions will not qualify for any earnings tax exemption from 1 July 2017.

All earnings on transition to retirement pension assets will be taxed at the standard super fund tax rate of 15%.

A transition to retirement pension is generally a pension received by someone between the ages of 55 to 65 who has not satisfied the ‘retirement’ condition of release.  For a pension recipient it is not always clear if a pension is a transition to retirement pension.  If you are unsure, you should discuss your circumstances with us.

On a practical level if your pension is a transition to retirement pension you will probably be best to stop the pension by 30 June 2017 unless you are relying on this pension to meet your living expenses.

For more information on any of the issues raised or to discuss any concerns you may have with the new superannuation rules please contact your account manager or Alan Mitchell on 03 9895 9333.

Disclaimer: The contents of this email is general in nature and we accept no responsibility for persons acting on information contained herein.