Early Access to Super

How Early Access to Super works

You’ve worked to grow your super balance. With a Transition to Retirement (TTR)/Early Access to Super (EATS) arrangement, you’ll have access to your super as an income stream while you’re still working.

See how it works

Below we’ve shown two examples:

• Anita, who chooses to have more of her income salary sacrificed into her Triple S account, reducing the amount of income tax she needs to pay while using her super to keep her take-home pay the same.
• Alison, who chooses to work less while keeping her take-home pay at the same level.

Anita’s annual cash flow

Source of income		Without a TTR		With a TTR
Salary		$70,000		$70,000
Less Salary Sacrifice2 (into super)		$Nil		$20,500
Adjusted taxable income		$70,000		$49,500
Less income tax3		$13,217		$6,555
Less Medicare levy3		$1,400		$990
Plus, low-income tax offset (LITO) 3		$0		$258
Plus, low- and middle-income tax offset (LAMITO) 3		$1,080		$1,080
Tax payable3		$13,537		$6,207
Net salary income		$56,463		$43,293
Plus TTR income		$Nil		$13,170
Total net income		$56,463		$56,463

With the same take home pay, how much extra will Anita be saving in her superannuation?

Anita could have $4,255 extra in her super (after deferred tax liability) by undertaking a EATS and TTR arrangement for the financial year¹. 

You should seek financial advice to see if this strategy is suitable to your needs before making any changes to your financial position. 

Anita’s super comparison

Source of income	Without a TTR	With a TTR
10% Employer contributions	$7,000	$7,000
Plus salary sacrifice contributions2	$Nil	$20,500
Less tax deferred liability (paid on exit)4	$1,050	$4,125
Less TTR income payment	$Nil	$13,170
Net increase to superannuation benefit	$5,950	$10,205

 

The example below shows Alison is able to reduce her working hours, while maintaining the same take home income by using an EATS/TTR arrangement¹.

Although there are benefits to using a TTR arrangement to help you phase into retirement, drawing income payments also reduces your retirement savings. You should consider this before making any decisions.

Alison’s annual cash flow

Source of income	Working full-time Without a TTR	Working part-time With a TTR
Salary	$70,000	$42,000
Less income tax3	$13,217	$4,522
Less Medicare levy3	$1,400	$840
Plus, low-income tax offset (LITO) 3	$0	$475
Plus, low- and middle-income tax offset (LAMITO) 3	$1,080	$630
Plus TTR income	$Nil	$18,720
Net income	$56,463	$56,463

^{1 Before starting a TTR, you should obtain financial advice and read the Income stream PDS
2 Limits and caps apply, please refer to the relevant PDS for more information
3 For more information on tax and tax offsets refer to the ATO website www.ato.gov.au
4 For more information on tax deferred, refer to the Triple S PDS}

^{The superannuation schemes administered by Super SA are exempt public sector superannuation schemes and are not regulated by the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA). Super SA is not required to hold an Australian Financial Services Licence to provide general advice about a Super SA product. The information in this publication is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Super SA recommends that before making any decisions about its products you consider the appropriateness of this information in the context of your own objectives, financial situation and needs, read the Product Disclosure Statement (PDS) and seek financial advice from a licensed financial adviser in relation to your financial position and requirements.}