This can benefit people who:

  • are residing in aged care who are under age pension age

Potential Benefits:

  • May increase entitlement to pensions under income or assets test, as super in accumulation phase exempt under age pension age
  • May reduce aged care fees, as super in accumulation phase exempt under age pension age

Things to be aware of:

  • Non-concessional or concessional contributions caps
  • Tax on earnings in accumulation phase (max 15%) compared to tax in pension phase or outside superannuation
  • Contribution preserved until condition of release met
  • Costs and taxes if redeeming investments to contribute to super
  • Commuting superannuation income streams and rolling back to accumulation may result in losing grandfathering

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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.