In This Chapter
Receiving a superannuation pension
Taxing government pensions and allowances
T he good old days of popping down to Centrelink and lining up to receive the old age pension when you retire are long gone. Unfortunately, no-one gets a free lunch anymore. The federal government has introduced an income and asset test to restrict your capacity to receive the old age pension. To add salt to the wound, the government has announced its intention to progressively increase the old age pension age (currently 65 years) to 67 years between 2017 and 2023 (and from 67 years to 70 years by 2035). Ouch! The government provides a number of tax incentives to encourage you to put money into a complying superannuation fund and fund your own retirement.
In this chapter, I discuss the three pension options that are normally offered to self-funded retirees. Each option has particular features that may appeal to you. I also examine the various types of government pension and allowance that you can receive if you satisfy certain conditions. These payments can be either taxable or exempt from tax.
Self-funded retirees can purchase three types of superannuation ...