Transition to retirement
Taxation of assets supporting TTR income streams
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