If you’re approaching retirement age or looking to retire, you could be eligible for a Retirement Bonus when you transfer funds from your Aware Super account to open a new Retirement Income account. The Retirement Bonus is a tax saving that we pass onto you when you retire with us, if you meet the eligibility requirements. The Retirement Bonus is available to eligible members from 18 November 2024.
Key points:
- Get up to $12,350 extra when you open a Retirement Income account
- You don’t have to apply – receive your Retirement Bonus automatically if you’re eligible
- Your Retirement Bonus is tax free
- Your Retirement Income account balance stays invested - so it continues to earn
Are you eligible for the Retirement Bonus?
To be eligible for the Retirement Bonus you need to:
- transfer some or all of your Future Saver and/or Retirement Transition account to a Retirement Income account, and
- have held a Future Saver and/or Retirement Transition account for 12 months or more, and
- have money invested in any investment option other than Cash or Term Deposits.
How is the Retirement Bonus calculated?
The Retirement Bonus paid is based on:
- The Retirement Bonus rate - currently 0.65%,
- Your average daily account balance in the investment options you hold, excluding Cash or Term Deposits (referred to as your eligible average daily account balance) over the 12 months prior to your Retirement Income account being opened.1 We calculate the daily balance for each investment option you hold (excluding Cash and Term Deposits) and divide it by the number of calendar days in the period.1
- How much, invested in eligible investment options, you transfer into your Retirement Income account1, and
- Aware Super's tax position at the time.
How much is your Retirement Bonus?
Based on your eligible average daily balance over the 12 months before you open a Retirement Income account and the amount you transfer in, you could receive a bonus of up to $12,350.
Scroll table horizontally on mobile
| Account Balance used for calculation | Retirement Bonus |
| $250,000 | $1,625 |
$500,000 |
$3,250 |
$750,000 |
$4,875 |
$1,000,000 |
$6,500 |
$1,250,000 |
$8,125 |
$1,500,000 |
$9,750 |
$1,750,000 |
$11,375 |
$1,900,000 |
$12,350 |
*This table is a guide only. To find out how much you could receive, log into Member Online and go to the Retirement Bonus calculator.
How the Retirement Bonus works
For most of your working life, your super is being held in an accumulation account. During this phase, we invest your super and put aside money to pay Capital Gains Tax (CGT) on the profits your super makes.
When you move to a Retirement Income account, your account balance and investment earnings are tax-free, so you no longer pay CGT. So, the money that was put aside to pay CGT is used to pay your Retirement Bonus.
How Danni received her Retirement Bonus
Danni is ready to retire with $352,000 in her Future Saver account, which she has held for many years. Her balance is fully invested in the Conservative Balanced investment option.
Danni decides to retire and transfer all of her super to a Retirement Income account so she can draw a steady, tax-free income and keep her balance invested.
Danni’s eligible average daily balance over the last 12 months is $350,000. The current Retirement Bonus rate is 0.65%.
Based on these numbers and the investment option Danni has chosen, Danni’s Retirement Bonus will be calculated as - $350,000 x 0.65 % = $2,275.
In this scenario, Danni’s current account balance is greater than the eligible average daily account balance over the 12 months prior to her Retirement Income account being opened. The bonus is calculated on the eligible average balance. And because she is transferring in 100% of her eligible total balance that figure is multiplied by 100%.
Example if Danni is invested in the Cash option
When a member has money invested in the Cash option, this amount is excluded from the calculation of the Retirement Bonus.
In this scenario, Danni’s has the same $352,000 in her Future Saver account, but has 70% or $246,400 of her account balance in the Cash option and $105,600 in the Balanced option.
Danni decides to retire and transfer all of her super to a Retirement Income account so she can draw a steady, tax-free income and keep her balance invested.
Danni’s eligible average daily balance over the last 12 months is $110,000 (excluding money in the Cash option). The current Retirement Bonus rate is 0.65%.
Danni’s Retirement Bonus will be calculated as - $105,600 x 0.65% x 100% = $686.40
In this scenario, Danni’s current account balance in eligible investment options is less than the eligible average daily account balance over the 12 months prior to her Retirement Income account being opened.
The bonus is calculated on the current account balance in eligible investment options. And because she is transferring in 100% of her eligible total balance that figure is multiplied by 100%.
These examples showing how we calculate the Retirement Bonus are for illustrative purposes only. It is based on assumptions, like the Retirement Bonus rate and balance. If your circumstances differ from these assumptions, the bonus paid to you will be different.
Retirement Income accounts opened prior to 18 November 2024 will not be eligible for a Retirement Bonus. If you open an additional Retirement Income account after 18 November 2024, you may receive a Retirement Bonus (subject to the requirements shown above). Before you consider this, we recommend you seek advice.
The Retirement Bonus counts towards your personal transfer balance cap, which is the amount of super you can move into a retirement product. The cap is $1.9 million from 1 July 2024.
You will need to make sure that the amount you transfer from your Future Saver and/or Retirement Transition account, plus your Retirement Bonus, plus any other money you may hold in other accounts in the retirement phase, does not exceed the $1.9 million cap.
No.
If you withdraw 50% or more of your Retirement Income account starting balance within 12 months of opening the account, Aware Super reserves the right to deduct the Retirement Bonus from your Retirement Income account.
Withdrawals include lump sum payments, rollovers, regular income payments, and one-off income payments. Withdrawals due to death, permanent incapacity, or terminal illness are excluded.
Yes, if you're eligible, we'll give a Retirement Bonus each time you start a Retirement Income account. However, the maximum amount you can receive is capped at $12,350 across all your accounts.
No, a Retirement Bonus is payable on Future Saver or Retirement Transition accounts only.
No, the Retirement Bonus is added directly to your Retirement Income account. If you want this money in your bank account, you can withdraw from your Retirement Income account, or leave it in there where it remains invested.
Other things you need to know
- The payment of the Retirement Bonus is at the discretion of Aware Super. We reserve the right to change or stop offering the Retirement Bonus at any time, without notice.
- The Retirement Bonus is calculated and applied at the time your Retirement Income account commences and may differ from any estimate you have previously obtained.
Questions? Great.
To speak to our member support team or book an advice appointment, call 1300 650 873.
Monday to Friday 8:00 am to 7:00 pm (AEST/AEDT).
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