A frequently asked question we receive is “Can I earn a tax free TRIS pension before I turn sixty?”
A recent ‘private binding ruling’ from the Australian Tax Office certainly seems to indicate that the answer is Yes.
If you are over fifty-five (55) and not yet sixty (60) you have likely decided to wait until you are sixty (60) to commence a TRIS…
However, perhaps now is the time to reconsider this.
It now appears as though we can access the tax free lump sum payment benefits throughout the TRIS period before we turn sixty (60).
If you have reached ‘preservation age’ and are not yet sixty (60) we highly recommend a ‘cost / benefit’ analysis to see if this cutting edge strategy would be beneficial for you.
We see the following tax free transition opportunities for a transition to retirement pension…
A five year pension of up to $39,000 p.a. tax free per annum
A four year pension of up to $48,750 p.a. tax free per annum
A three year pension of up to $65,000 p.a. tax free per annum
A two year pension of up to $97,500 p.a. tax free per annum
A one year pension of up to $195,000 p.a. tax free…
And the added benefits:
– you have the opportunity for your superannuation investment earnings to be tax free as well..
– ability to have the pension reversionary to ensure your investment strategy can be adhered to
– increase your personal cash flow and pay down debt
– take a tax free holiday 🙂
– ability to salary sacrifice more cash into superannuation to save significant amounts of personal income tax (replaced by tax free income)
It appears to be win win.
The devil is in the detail, and a private binding ruling is suggested.. and would be required for absolute safety.
With proposed changes to superannuation, perhaps now is the time to act, before this door closes.
Why not contact our office to see if you can take advantage of this opportunity… (02) 9965 3710
The contents of this article are general in nature and do not take into account your personal circumstances. We accept no responsibility for persons acting on information and data contained herein; no representations, express or implied, are made as to the accuracy of the information and data contained herein; you are responsible for ensuring by independent verification its accuracy, currency and completeness.