The Retirement Bonus is a payment that we can make to your clients on eligible transfers to a Retirement income account or Lifetime Pension1. When the transfer occurs, there is a reduction in tax payable by the fund that we pass on to your clients via the Retirement Bonus.

Australian Retirement Trust is the superannuation fund formed through the merger of Sunsuper and QSuper. As one of Australia’s largest super funds, we’re leveraging our size and scale to offer new and improved products and services to support our members to and through retirement.

The Retirement Bonus is one feature of our award-winning retirement products2 designed to help your clients retire well with confidence. The changes combine the best of the previous QSuper and Sunsuper designs, to create a single design that’s the same for everyone. 

Here's what's changing

The new Retirement Bonus design is simple, predictable, and automatic.

From 1 July 2023, the Retirement Bonus will be 0.50% of the eligible amount transferred into a new QSuper Retirement Income account or Lifetime Pension.

  QSuper
 Super Savings
 From 1 July 2023
Amount  The amount is variable and depends on an individual’s balance and investment history Calculated as 0.30% of the eligible amount transferred A simple, predictable amount calculated as 0.50% of the eligible amount transferred

Payment limit  Uncapped Capped at maximum of $5,100* Capped at maximum of $9,500**
Paid on  Some investment options Any investment option All investment options, apart from Self Invest
Eligible Waiting period*** 2 months minimum in an eligible investment option 12 months 12 months (with some exceptions)

* This is based on 0.30% of the general transfer balance cap of $1.7m for the 2022-23 financial year.

** This is based on 0.50% of the general transfer balance cap of $1.9m that is due to come into effect for the 2023-24 financial year.

*** Waiting period refers to funded membership with us. See FAQs section below for further information on eligibility.

Helping your clients retire with confidence

The new bonus is simple and predictable.

Here's what that could look like*:

Eligible transfer amount Retirement Bonus
$200,000 $1,000
$500,000 $2,500
$800,000 $4,000
$1,000,000 $5,000
$1,700,000 $8,500
$1,900,000 $9,500

*Please note these examples are based on new monies transferred to a Retirement Income account and/or Lifetime Pension. See 'Can I receive more than one Retirement Bonus’ for details on what can reduce your Retirement Bonus.

Read our FAQs below for more detail on the changes.

FAQs for Advisers

All FAQs below apply from 1 July 2023

If your client would like to receive the current Retirement Bonus, we encourage you to submit complete applications for the Retirement Income account and Lifetime Pension as soon as possible.

The basis on which the Retirement Bonus is paid to your client depends on the date the application is processed by us.

If your client’s application is processed prior to 30 June 2023, the Retirement Bonus will be calculated using the current method.

If the form is processed by us on or after 1 July 2023, then the new Retirement Bonus method will apply.

We’ll make every effort to process forms before the 1 July 2023 change, however we do encourage you to have your complete application to us by 14 June 2023.

To be eligible to receive the Retirement Bonus, your client needs to start one of the following products on or after 1 July 2023:

The money needs to come from:

  • A QSuper or Super Savings Accumulation account,
  • A QSuper or Super Savings Transition to Retirement Income account, or
  • A superannuation death benefit

Your client needs to have been a member with us for at least 12 months. This means your client needs to have some or all of their superannuation with us for at least 12 months before starting a Retirement Income account or Lifetime Pension.

But there’s an exception to the 12-month rule if the Retirement Income account or Lifetime Pension is commenced with a superannuation death benefit, or if they meet the permanent incapacity conditions of release.

The Retirement Bonus amount of 0.50% applies to eligible funds transferred to our Retirement Income accounts or Lifetime Pension.

The maximum Retirement Bonus amount a member can receive is 0.50% of the general transfer balance cap. This means the maximum Retirement Bonus from 1 July 2023 is $9,500. This is based on 0.50% of the general transfer balance cap of $1.9m for the 2023-24 financial year. The higher general transfer balance cap comes into effect on 1 July 2023. Members will not receive a Retirement Bonus on money transferred in excess of the general transfer balance cap.

Any potential Retirement Bonus could be reduced due to any previous Retirement Bonuses received, and/or commutations (such as withdrawals) or rollovers from an existing Retirement Income account or Lifetime Pension. Monies held in the QSuper Self Invest option are not eligible for a Retirement Bonus.

All investment options (except the QSuper Self Invest option) are eligible.

The Retirement Bonus rate of 0.50% and eligibility rules are the same for QSuper and Super Savings accounts. The amount of Retirement Bonus that can be received is based on the amount of eligible funds transferred to a Retirement Income account or Lifetime Pension.

Yes. If your client is eligible, we’ll pay a Retirement Bonus each time a Retirement Income account or Lifetime Pension is opened.

If they have opened a Retirement Income account and/or Lifetime Pension in the past, the amount of Retirement Bonus received will be reduced by any previous Retirement Bonuses received and/or commutations or rollovers from those accounts. This includes, for example, any lump sum withdrawals or transfers back to an Accumulation account.

It's important to know there's a lifetime cap on the total Retirement Bonus amount a member can get. This means that members may have already received the maximum amount for any Retirement Bonus. It is a maximum of 0.5% of the general transfer balance cap which is adjusted periodically. From 1 July 2023 the maximum Retirement Bonus will be $9,500, because the Australian Taxation Office will increase the general transfer balance cap to $1.9m.

If a Retirement Income account and/or Lifetime Pension has been opened previously, the amount of Retirement Bonus received will be reduced by any commutations or rollovers from those accounts. This includes for example, any lump sum withdrawals or transfers back to an Accumulation account.

This aims to ensure the Retirement Bonus is only paid on new money into the Retirement Income account and/or Lifetime Pension.

Case Study

Jane is aged 65 and has been a funded Australian Retirement Trust member for more than 12 months. Jane currently has $200,000 in her Super Savings Accumulation account, which is invested in the Balanced option, and she is eligible to open a Retirement Income account.

Jane transfers $200,000 from her Accumulation account to a Retirement Income account and receives a Retirement Bonus of $1,000 ($200,000 multiplied by 0.50%). Her starting balance for the Retirement Income account is $201,000.

Over time Jane’s Retirement Income account increases in value (via investment returns), and her balance is $250,000. Jane chooses to restart her Retirement Income account with an additional $100,000 that she has contributed to her Accumulation account, so her new Retirement Income account balance would be $350,000.

The bonus calculation is calculated on only the new money (existing $250,000 balance that was commuted during restart is excluded). The calculation is therefore $350,000 minus the $250,000 that was commuted multiplied by 0.50%, which equals $500. The new Retirement Income account created will be $350,500.

Note: Case study does not show fluctuations in the account balance.
The case study above is provided for illustrative and educational purposes only and the members shown are not real. The calculations are not intended to be relied on for the purposes of making a decision in relation to a financial product. Additionally, figures may be rounded for ease of understanding. Members should seek advice from a qualified licensed professional, regarding their own circumstances, before making any financial decisions.

At retirement, the movement of assets from taxed to untaxed increases the Fund's Exempt Current Pension Income (ECPI) position. This increase creates a reduction in the Fund's deferred tax liabilities (DTLs) and a saving in tax. This saving is distributed to members as the Retirement Bonus.

No. The Retirement Bonus is applied as an earnings adjustment. It isn’t paid from reserves and doesn’t count towards a member's concessional or non-concessional contribution.

Only monies transferred from an Accumulation account or Transition to Retirement Income account are eligible for a Retirement Bonus.

This means that monies directly transferred from a Defined Benefit account aren’t eligible, unless they are first transferred to an Accumulation account or Transition to Retirement Income account.

Please contact us to discuss your clients.

Super Savings 13 11 84

QSuper 1300 360 750

How the Retirement Bonus is applied depends on whether your client has requested to transfer their full balance or a specified amount to a Retirement Income account or Lifetime Pension as outlined in the scenarios below. If you are opening a Retirement Income account and Lifetime Pension, the Retirement Bonus is paid proportionally across those accounts.

Scenario One

When the full balance of an Accumulation account and/or Transition to Retirement (TTR) Income account is transferred:

The Retirement Bonus is calculated on the full balance of the Accumulation account and/or TTR Income account and added to the amount transferred.

Example:

  • Accumulation account balance: $500,000
  • Retirement Bonus on balance ($500,000 * 0.50%) = $2,500
  • Retirement Income account starting balance: $500,000+$2,500 = $502,500

Scenario Two

When a specified amount from an Accumulation account, which is less than the full balance, is transferred:

The Retirement Bonus is calculated on the specified amount, but only the specified amount is transferred to the Retirement Income account.

Example:

  • Accumulation account balance: $500,000
  • Specified amount of $400,000 to be transferred to Retirement Income account
  • Retirement Bonus on balance ($400,000 * 0.50%) = $2,000
  • Income account starting balance: $400,000 (as it’s the amount specified)
  • Accumulation account balance: $102,000

Scenario Three

The Retirement Bonus is calculated on the account balance less the specified amount to be left in the Accumulation account*, and then transferred to the Income account.

Example:

  • Accumulation Account balance: $500,000 
  • Specified amount to remain in the Accumulation account: $10,000 
  • Retirement Bonus on Balance ($490,000 * 0.50%) = $2,450 
  • Income account starting balance: $490,000 + $2,450 = $492,450
  • Accumulation account balance: $10,000

*We treat any instruction for a specific amount to be transferred or retained as absolute. Therefore, we will pay the Retirement Bonus to the accompanying account .

Note: These scenarios above are provided for illustrative and educational purposes only The calculations are not intended to be relied on for the purposes of making a decision in relation to a financial product. Members should seek advice from a qualified licensed professional, regarding their own circumstances, before making any financial decisions.

Your client will receive the new Retirement Bonus provided they have had funded membership for 12 months (and meet other eligibility criteria) when their Transition to Retirement Income account is closed and transferred to a Retirement Income account or Lifetime Pension.

We will automatically open a Retirement Income account when your client turns 65 if they haven't closed it beforehand.

You can learn more about the QSuper Retirement Bonus here.

You can learn more about the Australian Retirement Trust Retirement Bonus here.

If your client is a QSuper account holder, they can learn about the changes to their Retirement Bonus here.

If your client has a Super Savings account, they can learn more about the changes to their Retirement Bonus here.

Additional Information

  • A Retirement Bonus may be added to your opening balance at the discretion of the Trustee
  • If there is a material change to the fund’s tax position (due to a significant market event for example), we may need to stop, alter and/or change the terms and conditions of the Retirement Bonus at any time and without notice.

1.The Retirement Bonus applies to transfers from an Accumulation account or Transition to Retirement income account. The Retirement Bonus is not paid on money transferred in excess of the general transfer balance cap. Any potential Retirement Bonus could be reduced due to any previous Retirement Bonuses received, and/or commutations (such as withdrawals) or rollovers from an existing Retirement Income account or Lifetime Pension. Monies held in the QSuper Self Invest option are not eligible for a Retirement Bonus. The Retirement Bonus does not apply to the Super Savings - Corporate Lifetime Pensions or QSuper Defined Pensions.

2. For further information refer to our Awards. These awards are solely statements of opinion and do not represent a recommendation to purchase, hold, or sell any securities, or make any other investment decisions. Ratings and awards are subject to change and are only one factor that you should consider when deciding how to invest your super. Past performance may not be a reliable indicator of future performance.