An industry super fund for all Australians
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Members who are aged 56 years or more, and who are still working, have the potential to save thousands of dollars in superannuation tax.
For most people, superannuation enjoys several tax advantages over many other forms of saving. That does not mean, however, that superannuation is tax-free—some Government taxes do apply.
On the other hand, if those very same funds are transferred from an accumulation-style superannuation account into a transition to retirement account based pension account, there is currently no tax on investment earnings and no tax on capital gains.
The example below shows how much difference this tax saving can make in just one year. Each year, the tax saving stays in your pension account, adding to your retirement savings, year after year.
*This is an example only. Actual investment returns and taxes vary depending on the investment option selected.
Potential tax savings are just one of the benefits of converting your superannuation into a transition to retirement account based pension account.
Many people also like the idea of the increased flexibility the pension provides, including access to up to 10% of your pension account balance, increased capacity to salary sacrifice, and more.
...that I can set up my pension account by transferring funds from my superannuation as soon as I turn 56 years of age, even if I am still working.
...that I can set up my pension account with a minimum transfer of $25,000 from my super account.
...that once my funds are in the pension account, I'll pay no capital gains tax (CGT) should my funds increase in value*.
...that with my pension account, I can choose to receive my pension payments monthly, quarterly, twice a year or annually, to suit my needs.
...that with regular payments from my pension account, I may be able to afford to salary sacrifice more into my super account.
...that with a transition to retirement account I can withdraw a maximum 10% of my pension account balance each year, for whatever purpose I choose.
....that unlike many other investments, I'll pay no tax on the investment earnings on my funds.
...that between age 56 and 60 years my pension income is added to other income for tax purposes, but I'll receive a 15% tax offset through my tax return.
...that unlike many other investment options, I'll pay no personal income tax on pension payments made to me after age 60.
...that whatever investment option I choose, the investments will be managed professionally for me.
....that I can receive tailored personal financial planning advice before I set up my transition to retirement pension account to make sure it's appropriate for me.
Call us to arrange a meeting with a financial planner to discuss ideas, options and your financial situation.
1300 658 776
Nev (56) is a full-time teacher and Carole (49) works part-time as a school librarian.
They're selling an investment property with no capital gains tax consideration. They have an investment loan and a mortgage over their own home. An overseas family holiday and some home renovations are also planned for later this year.
Their current lifestyle expenses are around $70,000 pa (excluding loan repayments). Nev has a medical condition that is stable and their general insurance cover is up to date.
Both of their Wills are old, but still valid.
Need help to save tax and achieve your retirement dreams?
Disclaimer: This example is an abbreviated summary of an actual financial plan prepared for a current member of the Fund. Member names have been changed and other confidential personal and financial details have not been disclosed to protect member privacy. This example is provided as general information only. It does not take into account your personal objectives, financial situation or needs. As a result, you should consider its appropriateness to your situation and obtain independent financial advice before making any decisions about your own financial arrangements or investments. Australian Catholic Superannuation's financial planning services are provided through an arrangement with Industry Fund Services (AFSL 232514).
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Nev and Carole want to live a comfortable life and travel. In order to achieve their dreams, they need to save tax and increase their retirement savings nest egg.
Read their story below to find out how we're helping them stay on track to retire at age 65.