Transition to Retirement – Tax Refund On Spot

Under new transition to retirement rules, if you have reached your preservation age, you may now be capable to reduce your working hours without reducing your income. You can do this by topping up your part-time income with a usual ‘income stream’ from your super savings. Previously, you could only access your super once you turned 65 or retired.

Under these rules, you can only contact your super profit as a ‘non-commutable’ income stream. A non-commutable income stream is one that cannot be changed into a lump sum. This generally means you cannot take your settlement as a lump sum cash payment while you are still running. You must take your super benefits as regular costs.

Employers still need to make necessary super guarantee contributions for all their eligible employees, including people on transition to retirement.

When bearing in mind the tax aspects of retirement, transition to retirement or superannuation income streams, we recommend you seek financial advice to find out what is best for you.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Retiring and Its Effect on Tax

Once you’ve retired, you can access a number of tax offsets, such as the seniors and pensioners tax offset and the superannuation income stream offset.

The seniors and pensioners tax offset allows you to earn more money previous to you have to pay tax or the Medicare levy. There are eligibility conditions linking to age and income. The offset is non-refundable, but unused offset amounts may be transferred between spouses (in some circumstances).

If you have income from an Australian superannuation income stream, you may be permitted to a tax offset if you are whichever in receipt of a disability superannuation benefit or death benefit income stream, or 60 or over.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au