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Learn how to receive your death benefit as regular income
If a loved one has recently passed away, you could choose to receive their superannuation, including any insurance benefits, as regular payments to your bank account. You can do this by opening our Income account and/or our Lifetime Pension (if you're aged 60-80 and retired). This turns the money you've received into regular income payments to your bank account.
Benefits of an income stream
There are rules around who is able to receive a death benefit, either as a cash payment or a death benefit income stream. Generally, you must be an eligible dependant of the person who has passed away.
An eligible dependant can include:
Keep in mind that if you are a dependent child receiving a death benefit income stream, we must stop your income payments before you turn 25 and pay you the remaining money as a lump sum, unless you are permanently disabled.
You also need a death benefit of at least $30,000 to open an Income account with it. It can't be combined with your own super.
If your loved one was a QSuper member, you will need to make a death benefit claim with us before setting up your Income account and/or Lifetime Pension. We aim to make our claims process as simple as possible.
To set up a QSuper Income account and/or Lifetime Pension with the money from a death benefit, there are a few things you need to do. We understand this may be a difficult time for you, so we aim to make the process as simple as possible.
If your family member was with a different super fund, you'll need to contact them to make a death benefit claim before setting up an income stream with us.
Complete the application form at the back of the Product Disclosure Statement for Income Account and Lifetime Pension (pdf).
For a death benefit with QSuper, you'll have the option to start a QSuper Income account, and/or a QSuper Lifetime Pension (if you're 60-80 and retired).
If the death benefit is with a super fund other than QSuper, please tell them you want to transfer the money to QSuper. Find the numbers you need to fill in any transfer forms.
Once we have received all superannuation death benefit money, we will open an Income account and/or Lifetime Pension for you and start making payments to your chosen bank account.
The way tax applies to a death benefit income stream depends on the age of the person receiving the benefit, and the age of the person who passed away. To find out more about death benefit income stream tax rates, refer to the Death Benefit Claim Guide (pdf).
Yes, there is a limit on the total amount of money you can transfer to an Income account without paying additional tax. This is known as the transfer balance cap.
For the 2022-23 financial year, the transfer balance cap is set at $1.7 million. If you have a number of income streams (either QSuper income streams with Australian Retirement Trust or income streams from multiple super funds), your combined account balances will all count towards this limit. Visit the ATO website for more information about the transfer balance cap.
We understand this can be a difficult time. Please contact us if you have any questions about setting up a death benefit income stream.
1. Please see our Death Benefit Claim Guide (pdf) for more information about interdependency relationships.