Is your Transition to Retirement (TTR) strategy still working as hard as it could? Check in to make sure it still suits your circumstances.
Take a portion of your before-tax income and put it into your super. You’ll generally pay 15% tax on this amount instead of your normal income tax rate, being mindful of the contribution rules and limits.
Take some of your super to top up your income. Payments from super are generally taxed less than your income, and completely tax-free once over 60.
Boost your super and take advantage of a lower tax rate
Supplement your income from your super
To reset or 'reboot' your TTR strategy, we ‘roll back’ the balance of your TTR into your super account, then re-establish a new TTR with the increased super balance.
The government imposes minimum and maximum drawdown limits based on a percentage of the balance of your TTR Income Stream account. By rebooting, you can potentially access a higher income from the income stream and contribute more into super.
There is no limit on how much you can invest in a TTR account. However, if your total super balance is more than $1.6 million you will not be able to make any further after-tax contributions to super (ie from your take-home pay or savings).
If so, Centrelink captures these accounts under the old income test deeming rules. If any changes are made to the account, this can impact how it is assessed. It's important to speak to Centrelink or seek advice before making any changes to an income stream set up before this date.
A TTR is taxed up to 15% on the investment earnings. If you are between preservation age and 65, make sure to let us know you've retired or ceased an employment arrangement after age 60. This is so we can convert your TTR to a HESTA Retirement Income Stream, where the investment earnings are tax free and there's no limit on how much you can withdraw.
To let us know you have retired, simply complete this form.
For more details, read the TTR Significant Event Notice.