Superannuation Retirement Income Streams

Non-Commutable Account Based Income Stream

A transition to retirement pension may also be considered to minimise tax. This is especially attractive if you are aged over 60 but not yet retired*8.

This strategy involves you commencing a non-commutable account based income stream, from which you may receive all or part of your income tax free. You, then salary sacrifice the equivalent amount of net income from your employment income to an accumulation super account.

The salary sacrifice contribution will still attract the 15% contributions tax; however, if you are paying a higher marginal tax rate you will be saving tax on every dollar you salary sacrifice, for example, if your marginal tax rate was 30%, you will be saving 15% on every dollar salary sacrificed.

In implementing this strategy you must ensure that the salary sacrifice contribution does not exceed the Concessional Contribution Cap as tax penalties then apply.

This is a complex area to get right and we encourage you to seek advice about your individual situation.