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  • Transition to retirement

    Under the transition to retirement rules, if you have reached your preservation age, you may be able to reduce your working hours without reducing your income. You can do this by choosing to start a transition to retirement income stream (TRIS).

    The TRIS tops up your part-time income with a regular 'income stream' from your super savings. Previously, you could only access your super once you were 65 years old or retire.

    Under these rules, you can only access your super benefits as a 'non-commutable' income stream. A non-commutable income stream is one that you can't convert into a lump sum. This generally means you can't take your benefits as a lump sum cash payment while you are still working. You must take your super benefits as regular payments.

    Employers still need to make compulsory super guarantee contributions for all their eligible employees. This includes people on a TRIS.

    When considering the tax aspects of retirement, transition to retirement or superannuation income streams, we recommend you seek financial advice.

    If a TRIS is not in the retirement phase:

    • the earnings from the assets supporting the TRIS will not be eligible for exempt current pension income (ECPI), and are taxed at the relevant tax rate
    • it will not count towards the member's transfer balance cap (until it goes into the retirement phase).

    A TRIS isn't in the retirement phase until the member meets one of the following conditions of release:

    • age 65 
    • retirement
    • permanent incapacity
    • terminal illness.

    See also:

    Last modified: 24 Jun 2021QC 31882