Q. Tell me more about beneficiaries in regards to pensions.
A. You may elect to have your pension continue to be paid to your spouse on your death. This is known as a Reversionary Pension. Alternatively, you may make a nomination as to your preferred lump sum beneficiaries.
Non-Binding Direction
The Trustee will take into consideration your nomination when exercising its discretion in deciding who your benefits will be paid to. The Trustee will also decide the proportion of payment to the recipients.
Under a Non-Binding Direction you can nominate:
- ‘Spouse’ may include your de facto partner.
- ‘Child’ may include adopted, ex-nuptial, step or adult children.
- ‘Financial dependent’ may include any other person who is financially dependent on you at the time of your death.
- ‘Interdependent’ as defined by superannuation law.
- ‘Estate’.
Please ensure that ‘Portion of Benefit’ percentages (including any portion paid to your
estate) add to 100%.
Binding Direction
You may wish to make a binding beneficiary nomination. For further details, please contact our Helpdesk. Binding nominations are subject to additional requirements and must be renewed every 3 years.
Q. Providing a Tax File Number (TFN)
A. Collection of Tax File Numbers (TFN) is authorised by the Privacy Act 1988, the Superannuation Industry (Supervision) Act 1993, the Tax Administration Act 1953 and the Income Tax Assessment Act 1936. The details below may change in the future as a result of legislative changes.
Your TFN may be used by the trustee only for lawful purposes including:
- Taxing benefit payments at concessional rates.
- Finding and amalgamating your superannuation benefits when insufficient information is available.
• Passing your TFN to the Australian Taxation Office for tax purposes, contributions,
if you receive a benefit or have unclaimed superannuation money after reaching the agreed pension age.
- Providing your TFN to a superannuation fund or retirement savings account receiving your rollover. The Trustee will not pass on your TFN if you instruct the Trustee in writing.
- Passing your TFN to the Australian Taxation Office in connection with the Government’s co-contribution scheme.
You are not required to provide your TFN.
Q. How will the new 2009/10 Federal Budget affect my pension?
A. The changes in the Federal Budget are set to affect both pensions and your superannuation. Whether you are already enjoying your retirement or have just started paying superannuation, it is important that you are aware of the following, which are to take place as of 1 July 2009 unless otherwise noted:
| The Age Pension eligibility age will eventually increase to 67 years, at the rate of 6 months every two years, beginning in 2017 and reaching 67 years in 2023. |
| The base rate for single pensioners will be increased by $32.49 per week, and $10.41 for couples. |
| From 20 September 2009, the taper rate for the income test on the pension will be increased from 40c in the dollar to 50c, and the Government will introduce a Work Bonus that will discount 50% of the first $500 of fortnightly employment income in determining pensions entitlements under the income test. This equates to a maximum benefit of $125 per fortnight. |
| Various pension allowances and supplements will be rolled into a new Pension Supplement. This will include an allowance to compensate for the Carbon Pollution Reduction Scheme when introduced in 2011. |
| A new Pensioner and Beneficiary Living Cost Index will be introduced into the indexation of the pension. |
