2. Income (pension) payments received from an account-based pension will generally be tax-free to you, from age 60. Similarly, lump sum withdrawals from age 60, can also be paid to you generally tax-free.
However, it’s important to note that there is a limit to these tax concessions, which came into effect from 1 July 2017. The limit is referred to as the transfer balance cap. In addition to this, upon commencing an account-based pension, a minimum annual pension payment must be made (until such time that the account-based pension ceases).
In this animation, we illustrate the finer details of the minimum annual pension payment.