'Transition to retirement' changes

 

PRESERVATION AGES

Date of birth

Preservation age

Before 1 July 1960

55

1 July 1960 – 30 June 1961

56

1 July 1961 – 30 June 1962

57

1 July 1962 – 30 June 1963

58

1 July 1963 – 30 June 1964

59

From 1 July 1964

60


Once you reach age 65 or meet a condition of release, your account moves into ‘retirement phase’.

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 on that day 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
  • Retiring
  • Terminal illness
  • Permanent incapacity

You should notify us if you meet a condition of release,  if you wish to move your account to retirement phase. When you reach age 65, we’ll do this automatically for you. Once in retirement phase, the balance on that day will count towards the limit on retirement products. Find out more about this limit.

 


Get in touch

For more information about these changes, call us on 1300 55 7586 between 8am and 7pm AEST (8pm daylight saving time) Monday to Friday.

 

 

This communication is issued by NULIS Nominees (Australia) Limited (ABN 80 008 515 633 AFSL 236465) (NULIS).  It is for general information and has not taken into account any particular person’s objectives, financial situation or needs. Before deciding to make a contribution to your superannuation, interested persons should consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. The information contained in this communication is current as at 1 July 2017. Any changes in the law or policy subsequent to this date have not been incorporated in this material.

NULIS is the Trustee of the MLC Super Fund (ABN 70 732 426 024).  Plum Super is part of the MLC Super Fund. NULIS is part of the National Australia Bank (NAB) group of companies. An investment with NULIS is not a deposit or liability of, and if not guaranteed by NAB. It is recommended that you consider the relevant Product Disclosure Statement (PDS) before you make any decisions about your superannuation. To obtain a copy of the relevant PDS please call us on 1800 952 955. Neither NULIS nor any other company in the NAB group of companies accepts any liability whatsoever for any decision that is made on the basis of or in reliance of the information contained in this material. NULIS is not a Registered Tax Agent and any tax information is of a general nature and should not be relied upon to determine your personal tax situation. It is recommended that you consult a professional tax adviser who is a Registered Tax Agent about your personal circumstances.