Early Access to Super
How Early Access to Super works
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How Early Access to Super works
You’ve worked to grow your super balance. With a TTR/Early Access to Super (EATS) arrangement, you’ll have access to your super as an income stream while you’re still working.See how it works
Below we’ve shown two examples:- Pam, who chooses to work less while keeping her take-home pay at the same level.
- Margie, who chooses to have more of her income salary sacrificed into her Triple S account, reducing the amount of income tax she needs to pay while using her super to keep her take-home pay the same.
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Pam’s story
Pam is 60 and has a salary of $60,000. After she carefully considers her situation:
Pam decides to roll $188,000 (net of 15% contributions tax) of her Triple S balance to establish an income stream. This is a non-commutable income stream, which means she can’t withdraw a lump sum while she is under age 65 and still working.
Pam decides to get the maximum payment of $18,800 p.a. which is 10% of her balance in line with the maximum limit set by the Commonwealth Government.
Pam is approved by her employer to reduce her working hours, then uses her Super SA Income Stream to supplement the reduction in her salary.
| Before Early Access | Early Access and 50% reduced hours | |||
| Salary | $60,000 | $30,000 | ||
| Taxable income | $60,000 | $30,000 | ||
| Less income tax* | $11,617 | $2,197 | ||
| Net salary income | $48,383 | $27,803 | ||
| Add incomes stream payments | - | $18,800 | ||
| Net income | $48,383 | $46,603 |
*Includes Medicare Levy and Low Income Tax Offset + LMITO
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Margie’s story
Margie is 60 and has a salary of $60,000. After she carefully considers her situation:
Margie decides to roll $188,000 (net of 15% contributions tax) of her Triple S balance to establish an income stream. This is a non-commutable income stream, which means she can’t withdraw a lump sum while she is under age 65 and still working.
Margie decides to get the maximum payment of $18,800 p.a. which is 10% of her balance in line with the limit set by the Commonwealth Government.
Margie works with her employer to set up salary sacrificing into her Triple S account, then uses her Super SA Income Stream to keep her take-home pay the same[1].
| Before Early Access | EATS and salary sacrifice | |
| Salary | $60,000 | $60,000 |
| Less salary sacrifice | - | $27,747 |
| Taxable income | $60,000 | $32,253 |
| Less income tax* | $11,617 | $2,670 |
| Net salary income | $48,383 | $29.583 |
| Add incomes stream payments | - | $18,800 |
| Net income | $48,383 | $48,383 |
*Includes Medicare Levy and Low Income Tax Offset + LMITO
[1] The annual employer and salary sacrifice limit, known as the ‘concessional contributions cap’, (currently $25,000 per annum) does not apply to contributions made to Triple S as an untaxed fund, in the same way that they apply to taxed schemes, including Super SA Select. Therefore there is generally no limit on the concessional contributions (ie. employer and salary sacrifice contributions) that can be made to Triple S each year.
It is important to note that any concessional contributions made to Triple S will be counted towards your concessional contributions cap where you also receive concessional contributions to a taxed super fund. Although you will not exceed your concessional cap under Commonwealth Law as a result of concessional contributions made to Triple S, any additional concessional contributions made to a taxed fund may result in you exceeding the cap.
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Learn more about Early Access to Super
- How EATS works
- Find out how to apply for EATS
- Book your place in an upcoming Super SA EATS seminar
- Download the Income Stream Product Disclosure Statement
- Finding a Financial Planner
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