Standard income stream
Flexibility for members who want to receive regular and tax effective income payments.
Get your super as income
There are many ways you can get your super savings in retirement: an account-based income stream, annuity or lump sum, to name a few.
You may even get a mix of income from both within and outside of super.
Account-based income stream
An account-based income stream is a popular option if you want to receive regular tax-effective income payments from your super savings.
Benefits can include:
- regular income payments from your super savings
- tax-free income payments and eligible withdrawals from age 60
- investment choice and tax-free returns
- control of your money with ad hoc withdrawals.
Account-based income streams are sometimes called pensions. But they're different, for example, to CPI-indexed pensions paid to eligible retiring CSS and PSS members.
Account-based means your superannuation income is paid until your account balance is zero. As your balance is invested in one or more investment options, there's the potential for capital growth over an investment horizon that could last 20 years or longer.
Like most investments, an account-based income stream is not without risk, including the risk of negative investment returns.
Income stream for PSSap members
PSSap members can take up an account-based income stream with CSC. It's called Commonwealth Superannuation Corporation retirement income (CSCri) and is offered through PSSap.
If you opt for an account based income stream, you must elect to receive at least your minimum annual payment amount for your age each year as set in legislation.
This minimum amount is determined by your CSCri account balance at your start date in your first financial year and at 1 July for each financial year thereafter.
In CSCri, you can choose to get fortnightly, monthly, quarterly, half yearly or annual income payments.
Access to money
Your money is not locked away if you choose to roll some or all of your super into CSCri. Arrangements are flexible, so you change them to suit your changing needs:
- Need to quickly access an ad hoc amount? You can make withdrawals at any time (unless you have a transition to retirement account because you're under age 65 and still work).
- Prefer to have investment choice for your account balance? You can choose from one or a mix of four investment options in CSCri and change at any time. Fees may apply.
- Want to increase or decrease how much income you get or the frequency of your income payments? You can change your preferred payment amount (within annual limits) and your payment frequency at any time.
- Prefer to manage your account online? Use PSSap Member Online.
Keeping your savings invested in super at retirement and drawing a regular income stream can be a tax effective strategy, potentially helping the longevity of your savings.
At any age:
- your investment returns in CSCri are tax free (except for transition to retirement).
If you are age 60 and over:
- your income payments and ad hoc withdrawals are paid tax free (ad hoc withdrawals are generally not allowed in transition to retirement).
If you are under age 60:
- PAYG tax is withheld from the taxable component of your income payments
- tax on ad hoc withdrawals is based on your tax components.
Paying less tax might leave more money in your account for investment. Over time, positive investment returns can earn their own returns, known as 'compounding interest'.
Note however, tax in super can be complex and is subject to change. That's why we recommend you consider professional advice for your own situation and needs.
To open a CSCri account, you must be a CSS, PSS or PSSap member with a minimum starting balance of $20,000 who will either be:
- permanently retired from the workforce, having reached preservation age
- in new employment on or after age 60
- age 65 or older.
|Product name||Commonwealth Superannuation Corporation retirement income (CSCri)|
|Type of income steam||Standard retirement income stream, Transition to retirement income stream
|Other contributions||Not allowed, however, you can restart your CSCri with additional money
|Income payments|| Fortnightly, monthly, quarterly, half yearly or annually
|Flexible income and lump sum options||
There is a minimum annual payment amount, and a maximum of 10% for transition to retirement
Available at any time (but not in transition to retirement income streams)
|Taxation||At any age
Tax-free investment returns (except for transition to retirement)
Age 60 and over
Tax-free income payments and ad hoc withdrawals
Under age 60
Concessional tax on income payments and ad hoc withdrawalsFull information in the CSCri Product Disclosure Statement
|Asset test|| 100% assessed under the Assets Test
Visit the Centrelink website for more about the Assets Test
|Income test||Assessed against the Income Test (Centrelink will apply deductible amount)
Visit the Centrelink website for more about the Income Test
Choose one or a mix of:
Administration fee: $30 per month ($360 per year)
Exit fee: $36 per withdrawal (not applicable to regular income payments)
Investment switches: Nil for the first two (2) switches in any financial year. Additional switches are $20 each
Indirect cost ratio: estimated at 0.12% - 1.63% per annum depending on the investment option chosen.
Other fees and costs also apply, including buy-sell spreads and other activity fees. For full details refer to the CSCri Product Disclosure Statement
|Personal financial advice||
Access to fee for service, no commission personal financial advice for your individual situation and goals, provided by CSC's authorised* financial planners.
*Our authorised financial planners are authorised to provide advice by Guideway Financial Services (ABN 46 156 498 538, AFSL 420367.). Guideway is a licensed financial services business providing CSC financial planners with support to provide members with specialist advice, education and strategies.
|Online account management||CSCri Member Online|
|Beneficiary nomination||Reversionary, binding or non-binding
|Keeping you informed||
Member Statement including confirmation of next year's payments
Schedule for Centrelink or Department of Veterans' Affairs
PAYG Payment Summary
Like most investments, CSCri is not without risk, including the risk of negative investment returns. For more information about the features, benefits, fees and the risks of investing in CSCri, please refer to the CSCri Product Disclosure Statement.