When you move your AustralianSuper super account or TTR Income account to a Choice Income account (account based pension), you could be eligible to receive an additional credit to your account balance – a Balance Booster.
During March 2020 to June 2020, negative market conditions resulted in the Balance Booster being reduced to zero for all investment options.
As investment markets recover a Balance Booster will begin to be credited to some investment options for Choice Income accounts opened after 3 June 2020. Not all investment options will receive credits at the same time. Existing eligibility criteria will continue to apply.
What’s Balance Booster?
Balance Booster is actually a tax saving. If you meet the eligibility requirements we’ll pass this tax saving on to you.
When you have a super account or TTR Income account, AustralianSuper sets money aside to pay for future capital gains tax when investment assets are sold.
When you move from a super or TTR Income account to a Choice Income account (account based pension), your balance is transferred to a tax free environment. Assets sold in retirement phase are not taxed, so the amount set aside in your super or TTR Income to cover a future capital gains tax liability can be passed to you as a credit – your Balance Booster payment.
Who’s eligible for the Balance Booster?
You’ll be eligible for a Balance Booster payment if:
- you move your existing AustralianSuper super account or TTR Income account to a Choice Income account, and
- you’ve been a super or TTR Income member for a full calendar month or more, and
- you’re invested in one of these investment options:
You don’t need to apply for the Balance Booster – if you’re eligible you will receive it.
When you move from a super account to a Choice Income account, the Balance Booster amount will be credited to your new Choice Income account the day it’s opened.
When you move from TTR Income to Choice Income, the Balance Booster amount will be credited to your Choice Income account the day we change your account name.
How is the Balance Booster calculated?
Your Balance Booster payment is calculated at the time you open your Choice Income account and is based on:
- AustralianSuper’s tax position over time,
- your balance history over time,
- your chosen investment option/s, and
- the amount of time you’ve been invested in the investment option/s.
Important things to know about Balance Booster
What can affect the value of a Balance Booster payment?
One of the factors that may influence the value of a potential balance booster payment is the amount of time you have been invested in the option in a super or TTR income account, as this may impact the capital gains made and also the money set aside for applicable capital gains tax.
If you change investment options prior to moving to Choice Income, your accrued Balance Booster amount may be reduced to zero as some of the money that was set aside is now used to pay the applicable capital gains tax for the assets sold during the switch.
Once you’ve moved to Choice Income, if you withdraw 50% (or more) of your starting account balance within the first financial year there will be a clawback of the entire Balance Booster. The 50% withdrawal threshold could be made up of any combination of income payments, additional withdrawals and rollovers.
Will my Balance Booster be counted towards the transfer balance cap?
Yes, your Balance Booster will count toward the transfer balance cap of up to $1.7 million (from 1 July 2021)*. This is the limit on the total amount of super that can be transferred into the retirement phase.
You’ll need to make sure that the amount you transfer from your super or TTR Income account, plus your Balance Booster and any other money you hold in other retirement income accounts, do not exceed this cap. Find out more.
The ATO calculates your transfer balance cap. To find out your personal transfer balance cap log into your myGov account or visit the ATO website for details.
*From 1 July 2021, the transfer balance cap will be indexed to $1.7 million. This means your personal transfer balance cap will be between $1.6 million and $1.7 million, depending on your circumstances. Find out more.
- A Balance Booster may be added to your opening balance at the discretion of the Trustee (the calculation will be based on your balance, the options you’re invested in, the duration with the fund and the tax position of the fund).
- A Balance Booster may apply to some investment options and not others.
- The Trustee calculates the Balance Booster, and it can be zero at any time.
- We may stop the Balance Booster, alter how it is calculated and applied, or change other terms and conditions at any time and without notice.
This information may be general financial advice and it doesn’t take into account your personal objectives, situation or needs. Before you make a decision about AustralianSuper and about different investment options you should think about your financial requirements and refer to the relevant Product Disclosure Statement. Remember that investment returns are not guaranteed and past performance is not a reliable indicator of future performance.