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Transition to retirement

Taxation of assets supporting TTR income streams

Section: 15.8

From a superannuation fund taxation perspective, income and realised net capital gains generated by assets supporting a TTR income stream are taxed at 15%, in the same way that superannuation in the accumulation phase is taxed, until the TTR income stream becomes a retirement phase income stream.

Once a TTR income stream becomes a retirement phase income stream, earnings on assets supporting the income stream become tax-free.

As a result, members who have met one of the required conditions of release may wish to contact their fund to ensure their TTR income stream is recognised as a retirement phase income stream. However, caution should be exercised when taking action to recognise a TTR income stream as a retirement phase income stream, as retirement phase income streams count towards the member's transfer balance cap.

Last modified: Wednesday, July 24, 2019