Retirement Planning & Experiences

[Happy Dude]

The whole re-borrowing against the main residence is most likely non-deductible for tax purposes because once the original loan is paid off, it’s hard to argue it’s done for anything but private purposes

It's called debt recycling I think. I'm not convinced it is as simple as splitting a main residence mortgage for investment purposes (beefed up with equity). There's heaps of spruiking on social media about how easy it is.

edit: I see @33kft has also mentioned debt recycling.

 

[MonteCristo]

We debt recycled our PPoR home loan (in our case, when we fully offset the loan, and was no longer charged interest - in order to purchase some shares). Word at the time was if you can demonstrate that you paid off the initial loan, you can convert that line of credit into an investment loan.

Obviously, previous establishment costs can't be deducted. But ongoing costs of the loan (annual fee, interest) can be claimed as an investment expense. And obviously only at a proportional basis (eg: can only claim ... 50% of the annual fee if you start the investment loan period from 1 January... Only 40% of the interest if 40% of the outstanding loan was for investment purposes, etc).

Not financial advice! This was from an accountant some 5 years ago.

 

[cove]

My tax knowledge stopped updating mostly in 1983 as I left professional accounting. 42 years later I am close to finishing my life as a wholesaler and manufacturer. We will still be involved in social housing and investing.

 

[Freq Flier 2013]

My tax knowledge stopped updating mostly in 1983 as I left professional accounting. 42 years later I am close to finishing my life as a wholesaler and manufacturer. We will still be involved in social housing and investing.

But having an accounting qualification is a great help in running any business!

 

[cove]

Yes @Freq Flier 2013 it was a great help. I still pay attention to taxation matters in Australia. We still use E Super with our superfund and we were both glad we dumped AMP. While owning our business was fun it was also quite challenging. We did end up owning all the premises that we operated from.There is lots of red tape with BAS, Super contributions, payroll tax varying in each state,statistics reports,waste handling reports and a lot more.

 

[JohnK]

Apologies, I am not asking for free advice just thoughts. If I am not mistaken I can set up free meeting with ANZ super.

I am now 62 years old and want to transfer around $250,000 into a TTR. I believe the fund earnings are taxed at 15% but if I withdraw 10% a year as regular income stream there is no tax even though I am working?

Plans are to keep working until at least 70 years old but the TTR can help me reduce some of my debt which is hurting. At the same time I can increase my regular super savings to ~$30,000 saving some income tax as well?

Thoughts?

 

[Jacques Vert]

Apologies, I am not asking for free advice just thoughts. If I am not mistaken I can set up free meeting with ANZ super.

I am now 62 years old and want to transfer around $250,000 into a TTR. I believe the fund earnings are taxed at 15% but if I withdraw 10% a year as regular income stream there is no tax even though I am working?

Plans are to keep working until at least 70 years old but the TTR can help me reduce some of my debt which is hurting. At the same time I can increase my regular super savings to ~$30,000 saving some income tax as well?

Thoughts?

As a general comment it's a plan worth looking into further but I won't comment on the tax side as I'm not qualified and haven't looked at it recently. These things change often.

I would suggest you talk to a number of advisers . Some are better than I others and many will give an initial free consultation . I spoke to many and eventually came across a guy who was head and shoulders above all the rest.

Take the next few years learning all you can about tax, super and retirement. Easier to make good decisions when you are not under time pressure.

 

[burmans]

My understanding is also that fund earnings are taxed at 15% but the pension payments to you are tax free but agree with the idea it would be worth consulting an advisor.

While a ANZ advisor may be ‘free’ be aware their financial motivations are to move you to a ANZ product.

 

[JohnK]

My understanding is also that fund earnings are taxed at 15% but the pension payments to you are tax free but agree with the idea it would be worth consulting an advisor.

While a ANZ advisor may be ‘free’ be aware their financial motivations are to move you to a ANZ product.

Yes I know about fund earnings taxed at 15%.

My motivation is that Im struggling and need some extra funds. If I am not mistaken a financial planner would cost $2500-$5000 or more and that's something I cannot justify trying to get out of this mess.

If I take $30,000/year from TTR tax free that will help me tremendously. If at the same time I salary sacrifice $15,000/year that will save around $4,500 net tax burden which should leave me around $20,000.

Im not too concerned about super balance because plan is to work until 70 years old I will have current super balance less TTR plus (8 years of $30,000/year less contribution tax). Also in 3 years time the TTR transitions to allocated pension so not losing too much from say original $300,000 TTR. In fact if returns remain around 8% I may only lose small amount from original TTR when it transitions to allocated pension.

I may actually work longer than 70 years old which at the end of the day makes superannuation pretty much useless. That's assuming I even make 70 years old.

Apparently Insignia Financial is the financial adviser of the ANZ product and MLC which is my other super balance. I'll try to set up meeting with them.

 

[andye]

My understanding is also that fund earnings are taxed at 15% but the pension payments to you are tax free but agree with the idea it would be worth consulting an advisor.

While a ANZ advisor may be ‘free’ be aware their financial motivations are to move you to a ANZ product.

Thats my understanding too
If under 65 and with a TTR pension, earnings are taxed but the payments themselves are not

 

[Quickstatus]

If I take $30,000/year from TTR tax free

You would need to create a TTR account from where you receive your tax free payments
You can move between 4% and 10% each year from your super accumulation account into the TTR account but you dont have to spend all of it.
So your $250K TTR should be within 4-10% of your total super balance if you want to withdraw it all in one financial year. Otherwise just move the amount you need each year.
You can also commute excess back into your super accumulation account
The TTR account would still earn at the same rate as your normal super account and its income taxed at 15%

 

[serfty]

I am now 62 years old and want to transfer around $250,000 into a TTR.

In three years at the age of 65 you can access part of or your entire balance and pay off any debt as a lump sum. (Irrespective of you continuing to work.)

Until then, if you leave your employment or "retire", since you are over 60 you can access part of or your entire balance and pay off any debt as a lump sum. (It does not matter if you find gainful employment somewhere else.)

Disclaimer: I am not a financial adviser and you should consider seeking further advice from someone more qualified.

 

[lakeman]

Apologies, I am not asking for free advice just thoughts. If I am not mistaken I can set up free meeting with ANZ super.

I am now 62 years old and want to transfer around $250,000 into a TTR.
Thoughts?

Defer to serfty who I believe has good knowledge, but have you ceased employment with anyone since you turned 60 as that would satisfy a condition of release to access a lump sum or tax free pension.

 

[lakeman]

Defer to serfty who I believe has good knowledge, but have you ceased employment with anyone since you turned 60 as that would satisfy a condition of release to access a lump sum or tax free pension.

Advice can be expensive but buying knowledge can be a bit cheaper, eg SuperGuide - Superannuation and retirement planning guide

 

[Quickstatus]

but have you ceased employment with anyone since you turned 60

JohnK has said he will keep working - see post #3525 - hence the TTR.

 

[TheRealTMA]

Yes I know about fund earnings taxed at 15%.

My motivation is that Im struggling and need some extra funds. If I am not mistaken a financial planner would cost $2500-$5000 or more and that's something I cannot justify trying to get out of this mess.

If I take $30,000/year from TTR tax free that will help me tremendously. If at the same time I salary sacrifice $15,000/year that will save around $4,500 net tax burden which should leave me around $20,000.

Im not too concerned about super balance because plan is to work until 70 years old I will have current super balance less TTR plus (8 years of $30,000/year less contribution tax). Also in 3 years time the TTR transitions to allocated pension so not losing too much from say original $300,000 TTR. In fact if returns remain around 8% I may only lose small amount from original TTR when it transitions to allocated pension.

I may actually work longer than 70 years old which at the end of the day makes superannuation pretty much useless. That's assuming I even make 70 years old.

Apparently Insignia Financial is the financial adviser of the ANZ product and MLC which is my other super balance. I'll try to set up meeting with them.

AFAIK: Most Super funds provide financial adviced re setting up a retirement or TTR etc account for free. They did fo us.

 

[Quickstatus]

Most Super funds provide financial adviced

Though the free one is limited advice
Anything more substantial is $$$

 

[QF WP]

@JohnK, be aware that the contribution limits will increase between now and when you hit age 70.

In fact, it looks like the current ones may increase on 1 July 2026 (following last weeks release of the latest average wages data for the December 2025 quarter). The ATO is expected to confirm the 2026-27 super rates and thresholds later this month. The concessional contributions cap should increase to $32,500.

 

[JohnK]

In three years at the age of 65 you can access part of or your entire balance and pay off any debt as a lump sum. (Irrespective of you continuing to work.)

Until then, if you leave your employment or "retire", since you are over 60 you can access part of or your entire balance and pay off any debt as a lump sum. (It does not matter if you find gainful employment somewhere else.)

Disclaimer: I am not a financial adviser and you should consider seeking further advice from someone more qualified.

No plans on leaving employment. I think 70 years old is good time but may stay longer as I work from home. I don't want to touch lump sump as I still want income stream if retired.

Happy to just take 10% a year from now until 70 years old. That should take care of most of the debt and also take care of aged care saving account in Thailand.

The TTR account would still earn at the same rate as your normal super account and its income taxed at 15%

Note at 65 years old the TTR transitions back to allocated pension and tax on earnings will be back the same as accumulation phase.

Have appointment with financial planner next Monday.

 

[serfty]

I don't want to touch lump sump as I still want income stream if retired.

If you have any debts still costing you interest at the age of 65 it makes good sense to eliminate the debts completely. It is unlikely returns on an income stream would be greater than the cost of any interest being charged