Most GuildPension payments are tax-free if you’re over the age of 60. Woohoo! Great news.
But there are some exceptions where tax will apply, depending on the type of pension account you hold, your age and the way your pension payments are structured. There are two ways GuildSuper can pay your pension to you – either in income stream payments or lump sum payments, and both have slightly different tax rates. We’ll break them down for you now.
Good news again! Lump sum payments (excluding death benefits – but we’ll cover that a bit later) are also tax-free if you’re over 60 years of age.
Lump sum payments are also likely to have both a taxable and tax-free component. However, depending on whether you have a Transition to Retirement (TTR) pension account or an Account-Based income stream pension account (read more about the types of accounts on Pension income payment options) there may be slight differences between the amounts that are taxable vs tax-free. Lump sum withdrawals are generally only available from a TTR pension account under very limited circumstances. See Make a lump sum withdrawal for more information.
If you choose a pension product where your pension is paid in the form of an income stream, your payments will always be tax free if you are over the age of 60.
If you’re younger than 60, your payment will have both a taxable and a tax-free component, which basically means you will be taxed for a portion of your payments. To minimise the amount of tax you are paying, make sure you provide your Tax File Number to us either via your online account or by giving us a call on 1300 361 477.
It can get a little bit confusing and the tax rates are subject to change each financial year, so your best bet is to read our Pension PDS for the most up-to-date information, or contact us for general advice on 1300 361 477.
In the event of your death, your remaining pension account balance will be paid to your beneficiaries. Again, how your death benefit is taxed entirely depends on the payment type you (or your beneficiaries) have selected, but basically there are two ways death benefits can be paid – as a reversionary pension and/or lump sum payments.
To learn more about these options, check out our Pension PDS.
Page last updated 1 December 2023
