How and when is the Retirement Bonus paid?
The Retirement Bonus is generally paid into eligible Retirement income accounts in the July following the financial year in which the Retirement income account was established.
You will be eligible for a Retirement Bonus if:
- you activate a Sunsuper Retirement income account on or after 1 July 2017,
- you held a Super-savings account or a Transition to retirement income account for at least 12 months prior to activating your Income account,
- you have not previously held a Retirement Income account with Sunsuper, and
- your Retirement income account is still active at the payment date, and
- you have never previously received a Retirement Bonus.
How much of a Retirement Bonus will I receive?
The Retirement Bonus is calculated as 0.30% of your account balance up to a maximum of $4,800. The table below shows some examples:
|Income account balance||Retirement Bonus|
|$1,600,000||$4,800 (maximum amount)|
If you activate a Retirement income account on or after 1 July 2017 and you make a top-up before 30 June of the financial year that the Income account is established, any Retirement Bonus you are eligible for will be calculated on the sum of your starting account balance and any top-ups you make.
How is Sunsuper paying for the Retirement Bonus?
When Sunsuper members activate an eligible Retirement income account, there is a reduction in tax payable by the fund. The Retirement Bonus will be funded from this tax saving.
Does the Retirement Bonus apply to Transition to retirement income accounts?
No. Due to tax changes from 1 July 2017, the Retirement Bonus is only payable if you activated a Transition to retirement income account before 1 July 2017.
Does the Retirement Bonus apply to all Sunsuper investment options?
Yes, you can choose any investment option and it will not affect your eligibility for the Retirement Bonus.
Is the Retirement Bonus reported as a concessional contribution?
Yes, the Retirement Bonus will be counted as a concessional contribution for the purposes of any additional contribution tax that may apply. Please note: You may be subject to the excess concessional contributions charge if your reportable contributions are close to the maximum cap in the same financial year that you are paid a Retirement Bonus. You should speak to a qualified financial planner or your tax adviser for personal advice on how this may impact you.
Will I have to pay contributions tax on the Retirement Bonus?
No. Contributions tax is not payable on the Retirement Bonus.
Can I receive more than one Retirement Bonus?
No. There is a limit of one Retirement Bonus per member. The Retirement Bonus is automatically paid to your first eligible Retirement income account with Sunsuper.
Are you thinking about retiring soon?
Call all us on 13 11 84 for more information on how to activate your Income account or to speak to one of our qualified financial planners.