QSuper works with ATO to boost retiree income
QSuper's Transfer Bonus initiative for retirees has collectively bolstered retirement balances of 3,000 members by more than $4.6 million during the past three months thanks to working with the Australian Taxation Office (ATO).
The initiative pays out the individual member's tax savings when they retire and transitions from an accumulation account to an income account.
The tax savings represent money that had been set aside by the fund to pay capital gains tax on the investment assets, but the tax does not need to be paid when the assets are sold in the income account.
QSuper chief executive, Michael Pennisi, said while members should not base their retirement on the bonus, it was a welcome boost as members were adjusting to retirement.
"By working with the Australian Tax Office and developing this industry-first Transfer Bonus we've been able to achieve our mission to deliver real benefits to our members," he said.
"Everyone's Transfer Bonus will be different as the bonus is calculated based on a combination of variable factors including balance size, length of time with QSuper, their investment options and the fund's tax provision over that time."
In the past three months, the average eligible member had received an additional $1,600, with one member receiving $35,000.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
