The article has been updated successfully.A TTR strategy allows individuals who have reached preservation age (currently age 55) to access some of their superannuation benefits.
As well as providing an opportunity to move to part time work and/or the opportunity to save extra funds to your superannuation, a TTR strategy can provide the following tax benefits:
- Investment earnings on super income streams are not taxed at all.
- People who have reached 60 years of age or over do not pay any tax on super income streams or lump sum benefits they draw down (unless they include a post June 1983 untaxed component).
- Concessional tax treatment, including a 15% offset applies to the taxable component of a superannuation income stream drawn down by someone under 60 years of age.
- Members can salary sacrifice additional funds into superannuation (subject to contribution limits) and pay tax of only 15% on those funds, as opposed to taking the funds as salary and paying tax at their marginal rate.
- Members can accumulate large superannuation balances in a tax concessional environment.
- Lump sum death benefits paid to a member’s dependant(s) are not taxed. The tax levied on non-dependants can be up to 15% (plus Medicare).
