The Australian Government's new Transition to Retirement program is ostensibly aimed at those people age over 55. It allows them to work fewer hours without losing income, by combining wages with money received via an income stream from their superannuation. However, those who may benefit from it the most are probably the age bracket over 60, and still working. This is because super payments to them are tax-free. For example, those earning $A85,000 a year could pay themselves an additional $A25,000, tax-free, from their super. They could then put $A38,062 of their pre-tax income back into their super. This would reduce their income tax by $A7,352.
|
