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Contact us to learn more about the Retirement Bonus.
Each investment option holds different investments that make up that option. The amount set aside for tax on unrealised capital gains depends on the investments held. This means the Retirement Bonus will differ between investment options and also over time as investment values change. Due to their nature, cash investments are highly unlikely to have unrealised gains and therefore the Retirement Bonus is likely to be nil for options that have a high exposure to cash investments, such as the Cash investment option.
You may receive more than one Retirement Bonus if you meet eligibility for a second and subsequent payment. For example, if you have multiple Rest accounts for the full 12 months prior to the transfer, you may be eligible for the Retirement Bonus depending on the type of investments options you’re in.
Yes, the Retirement Bonus will be included in the transfer balance cap amount when you are transferring your super into a Rest Pension. The transfer balance cap is the maximum amount you can transfer from your super savings into retirement income products (including Rest Pension) over your lifetime. To view your personal transfer balance cap, please visit ATO online.
The Retirement Bonus will apply as long as there is a difference in the tax rates between super/TTR and Rest Pension Retirement accounts. Currently the government taxes realised capital gains in super and TTR accounts. Pension Retirement accounts are not taxed, which means funds set aside to pay a capital gains tax liability are not required in the Pension retirement account.
Rest maintains the right to stop offering the Rest Retirement Bonus at any time, without notice. If there is a legislative change – if the tax treatment changes and super, TTR and Account Based Pensions are taxed the same way then a bonus payment may no longer apply. In this case we will attempt to give prior notice as the Government would usually notify us in advance.
It’s important to weigh up all the factors. When you switch investment options prior to moving to a Rest Pension Retirement account, your Retirement Bonus amount may be reduced to zero.