Moving to and from a pension can have financial, tax or social security implications. There are also strict rules and requirements regarding can start a pension, caps on the amount that can be used to start a pension and requirements on how much to draw down. Read our Super Information guides before opening a pension account https://www.netwealth.com.au/nw/Access/Forms/SW_Information-Guides. Please get in touch with us if you have questions for our technical support team.

If the account holder is seeking to claim a tax deduction for personal non-concessional contributions made to their Netwealth account, a tax deduction claim should be submitted online before transferring to an income stream. To do so, navigate to Transactions > Deposit and contribute > Claim a tax deduction.

If yes, and the applicant to the income stream would like to claim the tax-free threshold from the Netwealth income stream, they would need to complete a tax file number notification form.This form is located when logged in under Forms and research > Forms and disclosure documents > Super Accelerator.

Transfers to an income stream or pension are done on an ‘in specie’ basis with no changes made to the current investments. If an account holder wishes for these investments to be sold down, they can sell assets prior to the transfer via the online client portal or via their adviser.

If there is insufficient cash for the annual nominated pension payments when the pension is run, the pension payment will not be paid. We will send a letter to the adviser, or where direct to the pensioner, notifying them that the pension has not been paid due to insufficient cash. Once sufficient cash is available, a catch-up payment can be requested online or by sending through an instruction to Netwealth.

Where an income stream commences part way through the financial year, the minimum income payment is pro-rated based on the days remaining in the year. The 1 June rule may also apply, which means that no payments are required to be made until the following financial year for an account-based pension or annuity commenced after 1 June in a financial year.

No new Term Allocated Pensions (TAPs) can be opened however you can transfer existing TAP's to Netwealth using the income stream application form.

You can add a reversionary beneficiary on your initial application or on the transfer between accounts. If your account is already set up, please use the 'Change of Details' form and is also located under Resources and Tools > Forms and Documents > Super Accelerator.

Superannuation legislation requires that each July income stream payments be recalculated to ensure total payments are over the minimum amount for the financial year. A client’s minimum payment amounts are determined by their percentage factor and account balance as at 1 July each year Netwealth will commence the new pension with the account balance as at 30 June. At this time, we will check for any additional required pension payments and send communications to investors and/or advisers of advised clients notifying them or the change and additional payment. Occasionally in September once Netwealth has received all the necessary income, taxation and price information from fund managers to allow us to complete processing for the financial year, 1 July account balances may be amended. At this time, we will send a second notification including a schedule outlining the changes to the income stream payments for the remainder of the new financial year.

Yes, when you submit an application or transfer between accounts clearly outline your intention on the form or attach a cover letter to your application.

If you are under age 60 any lump sum benefit may be subject to tax. The amount of tax may depend on factors including your age, previous benefit payments made and the condition of release under which the benefit is being paid (eg. tax concessions may apply for benefits paid under “permanent incapacity”). For more information about tax on lump sum payments refer to Information Guide 10: Tax and Social Security. You should seek personal tax advice regarding the tax treatment of benefit payments.

Yes. However, the account will remain in accumulation phase until all assets have been received, at which point it will be rolled forward to pension. If any distributions or dividends are paid during this time, they will incur tax and so it is advisable to consider the expected timing of distributions from investments held. June is when majority of investments funds will pay distributions.

If there is insufficient cash to process the pension payment, the payment will not be paid. Once there is sufficient cash the account holder or their adviser can notify our investor services centre via email contact@netwealth.com.au and the payment will be processed as soon as possible.