Accru Felsers FACT SHEET.pdf

Account Based Pensions (ABP) and Self Managed Super Funds (SMSF) providing income streams currently pay no tax on earnings and capital gains. There are two types of pensions: Transition to Retirement Income Streams (TRIS) and ABP. TRIS allows access to superannuation benefits as an income stream for those who have reached preservation age but are still working, with a maximum withdrawal rate of 10% per financial year. ABP allows access to superannuation as an income stream or lump sum once a person reaches preservation age and satisfies a condition of release. Conditions of release include retirement, death, terminal medical condition, permanent incapacity, attaining age 65, and attaining preservation age. A minimum pension withdrawal is required each year, calculated based on the member's account balance, with percentages ranging from 2% to 7% depending on age. The transfer balance cap, which began on 1 July 2017, limits the total amount of super that can be transferred into a tax-free retirement account to $1.7 million. Taxation rules vary depending on age and type of pension, with PAYG withholding required for taxable components of pension payments for members under 60.