Save more super by maximising tax savings
By using an income account, you can save more super and pay less tax by adding to your super from your before-tax salary. Your income account will then provide you with payments to replace the salary you’ve diverted to your super.
The benefits of using transition to retirement (TTR) this way include:
- paying less tax*
- speeding up your rate of saving
- using your income account to top up your take-home pay
- giving your super the best chance to grow: earnings are tax-free on retirement income account investments**.
* As long as you earn less than $300,000 per year (including super).
** Income payments paid may be subject to personal income tax if you’re under 60.
You could also use your super to reduce your working hours, and use TTR to cover your reduced income. Find out how to Work less.
Transition to retirement can be complicated and may not be suitable for everyone, so it’s a good idea to get personal financial advice before you start. Find out more about help and advice.