Are you a QSuper member? QSuper’s Retirement Bonus is changing.
QSuper’s Retirement Bonus is a payment that they can make to you on eligible transfers to a Retirement Income account or Lifetime Pension. When this occurs, there is a reduction in tax payable by the fund that they pass on to you.
Australian Retirement Trust is the superannuation fund formed through the merger of QSuper and Sunsuper.
If you’re planning to retire soon, you need to know about the changes that they are making to their Retirement Bonus from 1 July 2023.
What’s changing for QSuper Account Holders:
| Feature | Now | From 1 July 2023 |
| Amount | The amount is variable and depends on an individual’s balance and investment history. | A simple, predictable amount calculated as 0.50% of the eligible amount transferred. |
| Payment limit | Uncapped | Capped at maximum of $9,5003, across all Australian Retirement Trust accounts you hold. |
| Paid on | Some investment options | All investment options, apart from Self Invest. |
| Waiting period* | 2 months | 12 months (with some exceptions). |
*Waiting period refers to how long you’ve had a ‘funded membership’ with us. See FAQs section below for further information on eligibility.
About the new QSuper Retirement bonus
The new bonus design is simple and predictable.
- It will be paid on all eligible transfers into a Retirement Income account, or Lifetime Pension.
- The maximum bonus will be $9,500, and
- It will be paid straight away.
Here’s what that could look like*:
| Eligible transfer amount | Retirement Bonus |
| $200,000 | $1,000 |
| $500,000 | $2,500 |
| $800,000 | $4,000 |
| $1,000,000 | $5,000 |
| $1,700,000 | $8,500 |
| $1,900,000** | $9,500 |
*Please note these examples are based on new monies transferred to a Retirement Income account and/or Lifetime Pension. See ‘Can I receive more than one Retirement Bonus’ for details on what can reduce your Retirement Bonus.
**The general transfer balance cap of $1.9m is due to come into effect for the 2023-24 financial year.
Read QSuper’s FAQs here and below for more detail on the changes:
To be eligible to receive a QSuper Retirement Bonus, you need to start one of the following products on or after 1 July 2023:
- QSuper Retirement Income account
- Super Savings Retirement income account,
- Lifetime Pension.
The money needs to come from:
- Your Accumulation account,
- Your Transition to Retirement Income account, or
- A superannuation death benefit.
You need to have been a member with QSuper for at least 12 months. This means you need to have some or all of your superannuation with QSuper for at least 12 months before starting a Retirement Income account or Lifetime Pension.
But there’s an exception to the 12-month rule if the Retirement Income account or Lifetime Pension is commenced with a superannuation death benefit, or if you meet the permanent incapacity conditions of release.
The QSuper Retirement Bonus amount of 0.50% applies to eligible funds transferred to your Retirement Income accounts or Lifetime Pension.
The maximum Retirement Bonus amount you can receive is 0.50% of the general transfer balance cap of $1.9m for the 2023-24 financial year. This means the maximum Bonus you can receive will be $9,500.
You won’t receive a Retirement Bonus on money transferred in excess of the general transfer balance cap. Any potential Retirement Bonus could be reduced due to any previous Retirement Bonuses received, and/or commutations (such as withdrawals) or rollovers from an existing Retirement Income account or Lifetime Pension. Monies held in the QSuper Self Invest option are not eligible for a Retirement Bonus.
There’s a limit on the total amount of superannuation you can transfer to a retirement income stream without paying additional tax. This is known as the transfer balance cap.
Right now, for most people, the cap is $1.7 million. The Australian Tax Office (ATO) reviews this each financial year to see if the cap needs to increase to allow for inflation. From 1 July 2023 the maximum Retirement Bonus will be $9,500, because the Australian Taxation Office will increase the general transfer balance cap to $1.9m.
All investment options (except the QSuper Self Invest option) are eligible.
The Retirement Bonus rate of 0.50% and eligibility rules are the same for Super Savings and QSuper accounts.
The amount of Retirement Bonus that you receive is based on the amount of eligible funds transferred to a Retirement Income account or Lifetime Pension.
Yes. If you’re eligible, QSuper will pay a Retirement Bonus each time you start a Retirement Income account or Lifetime Pension.
However, there’s a lifetime cap on the total bonus amount you can get, which from 1 July 2023 will be $9,500 (0.5% x the general transfer balance cap).
Note, your potential Retirement Bonus could be reduced due to any previous Retirement Bonuses received, and/or commutations (such as withdrawals) or rollovers from an existing Retirement Income account or Lifetime Pension.
The Retirement Bonus is funded from a reduction in tax payable by Australian Retirement Trust that can occur when a member starts a Retirement income account or Lifetime Pension.
When Australian Retirement Trust invests your super, they set aside money as an estimate of the tax required to be paid when fund assets are sold.
When you transfer your money into a Retirement income account or Lifetime Pension, your money moves into a ‘tax-free investment environment.’ This reduces the tax payable by Australian Retirement Trust, which they can pass onto you as a Retirement Bonus.
No, the Retirement Bonus will not be counted as a concessional contribution for the purposes of any additional contribution tax that may apply.
No. Contributions tax is not payable on the Retirement Bonus.
The Retirement Bonus isn’t calculated on any Defined Benefit monies you may have. However, if your Defined Benefit is first transferred to an Accumulation account (or Transition to Retirement Income account), the money then transferred into a Retirement Income account or Lifetime Pension would be eligible for the Retirement Bonus.
A Retirement Bonus is not paid on QSuper Defined Pension or Super Savings – Corporate Lifetime Pensions.
You can learn more about the QSuper Retirement Bonus here.
You can learn more about the Australian Retirement Trust Retirement Bonus here.
If you would like to receive the current Retirement Bonus before the 1 July 2023 change contact CTWealth, to see how our team can help.
The CTWealth team are here to help.
We can help to quantify how these changes may impact your personal situation and if this impacts your current retirement plans.
Deciding what’s best for you will depend on your personal circumstances. Personal financial advice is very important at this time.
We offer a complimentary 15 minute phone consultation to assist you if you have any questions about the changes.
