Early Access to Super

How Early Access to Super works

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.

Start a Transition to retirement to increase your salary sacrifice and maintain your take home pay

Anita is aged 60 and earns $70,000 a year, which leaves her a net income of $56,463 after tax and Medicare levy for 2021/22. Anita would like to keep working and maintain the same take home income.

Anita would like to understand how the TTR could be structured to ensure she receives the same take home salary but reduce her income tax¹. Anita has a current superannuation balance of $160,000.

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

 

Transitioning into retirement while maintaining your take home pay and working less hours

Alison is aged 60 and earns $70,000 a year, which leaves her a net income of $56,463 after tax and Medicare levy for 2021/22. Alison would like to reduce her working hours but maintain the same take home income.

Alison would like to understand how the TTR could be structured to ensure she receives the same take home salary but reduce her working hours to part time¹ (3 days work week). Alison has a current superannuation balance of $230,000.

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

Learn more about Early Access to Super

The information shown on this website is general information only. We haven’t considered your needs or objectives when providing the information. You should assess your own financial situation and needs and read the relevant Product Disclosure Statement before deciding about products on this website.

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