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Retirement phase income streams

Introduction to super income streams

Section: 16.1

Retirement phase income streams can take the form of pensions or annuities. For superannuation law purposes, there is generally little difference between a pension and an annuity as they are similar income streams but paid from different providers. Super funds generally provide pensions whereas annuities are paid under a contract with a life company or registered organisation.

Prior to the commencement of the superannuation reforms on 1 July 2017, all superannuation income streams qualified for a tax exemption on the earnings on assets supporting the income stream.

However as part of superannuation reform, a new concept has been introduced to make it clear that from 1 July 2017, not all superannuation income streams will be eligible for an earnings tax exemption.

From 1 July 2017, only 'retirement phase income streams' are eligible for an earnings tax exemption. In addition, only retirement phase income streams count towards the transfer balance cap

Last modified: Thursday, January 11, 2018