Robert's Retirement Blog

There are a number of factors to consider if you are currently on the disability support pension and are coming to the point of turning age pension age (67) and have to decide whether you would like to retain your disability pension or move to the age pension. I have tried to summarise a few points below – this list is not exhaustive and please seek personalised advice specific to your situation before making any decisions. 

Does one pension pay more than the other?

Firstly, to determine your level of age pension or disability pension – Centrelink will run a “means test” which looks at the amount of assets you have and the amount of income to determine your eligibility for a payment and how much of a payment you receive. This test remains the same on disability support pension or on an aged pension. The amount Centrelink will pay for the disability and the age pension also remains the same. Please note prior to your age pension age of 67, your superannuation may not have been assessed as an asset if it was still in accumulation phase – it will now be assessed on each entitlement once you turn 67.

What are the potential tax implications?

The disability support pension prior to age pension age is tax exempt, once you reach age …

Superannuation guarantee (SG) contributions is the terminology applied to the amounts of super your employer contributes. At the time of this writing we are almost half way through the legislated increases with the SG amount now being 11% of your wage. 

There are a few more increases on the way in future years as per the below table.

The Association of Superannuation Funds of Australia considers 12 per cent SG to be critical to helping individual retirees to achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future federal Government budgets as the population ages.

Periods:

• 1 July 2019 – 30 June 2020: 9.5% Super guarantee
• 1 July 2020 – 30 June 2021: 9.5% Super guarantee
• 1 July 2021 – 30 June 2022: 10% Super guarantee
• 1 July 2022 – 30 June 2023: 10.5% Super guarantee
• 1 July 2023 – 30 June 2024: 11% Super guarantee
• 1 July 2024 – 30 June 2025: 11.5% Super guarantee
• 1 July 2025 – 30 June 2026: 12% Super guarantee
• 1 July 2026 – 30 June 2027: 12% Super guarantee
• 1 July 2027 – 30 June 2028 and onwards: 12% Super guarantee

For those who have worked in the South Australian Government before or know someone that has – you might have heard of SuperSA Triple S Scheme which is the default superannuation account for new employees in the SA Government. Although this news I am about to share has been around for a few years now – there are still a lot of new client enquiries I get who aren’t aware of the changes.

Essentially previously to 30th of November 2022, if you were employed by the SA State Government, they had to contribute your employer super contributions to the Triple S scheme. So, for example if you were a nurse working 3 days per week for the SA Government and then 2 days per week in the private sector, you would essentially need to carry two superannuation funds. However as per their notice that was communicated back in September 2022 (see here) from the 30th of November 2022 onwards, employees now have more choices.

One of the changes that are now available is that being an SA Government employee – your SA Government contributions don’t have to go towards your Triple S account now and you can choose any other complying accumulation fund. Now this can be a benefit in some scenarios so you aren’t carrying multiple super funds. However, it is …