Social security and tax

When you retire, your tax and social security position will change - mostly for the better. With the ageing population, the government wants to shift the burden away from the Age Pension, so there are generous tax concessions for retirees who can provide their own income stream. Find out what you're entitled to - and take advantage of what is on offer.
Social security and tax advantages are there for a reason

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It's a complex area, and there are many tax concessions available to retirees - you just need to know about them. This is where financial advice is so important. If possible, seek advice before you retire. Even if you have retired, it is not too late to find out how you can invest to make use of these concessions. It could make all the difference.

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With retirement income stream products, such as pensions and annuities, you may be able to:

  • receive your payments tax-free if you're over age 60
  • receive a 15% tax rebate on the taxable portion of each income payment (eligibility criteria apply).

Plus, any earnings generated in an income stream converted from superannuation are tax-free

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Some types of income streams that meet certain criteria help you qualify for the Government's Age Pension because only 50% of the assets you use to purchase the income stream are assessed under the assets tests. Account Based Pensions purchased by the 19th September 2007 will lock in a 50% assets test exemption. No pensions purchased after this fate will qualify for this exemption.

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Think you might work part-time? Check out whether or not you are eligible for the senior Australians tax offset. This can be claimed as a rebate on your yearly tax return or by having less tax deducted from each salary payment.

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Once you've retired, you can hold investments jointly as a couple and earn investment income in both names. It's another tax-effective strategy that may apply to retirees. Talk this over with your financial planner.

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Find out more about retirement
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's pension plans.