About income stream accounts

An income stream allows you to keep your super invested for growth and convert it into regular income payments.

With a First State Super income stream account you:

• Pay no entry fees or commissions and low administration fees. 
• Minimise the tax you have to pay.
• Choose how your super is invested from 10 investment strategies 
• Decide how the balance of your income stream account is to be distributed if you die
• Choose from a number of flexible payment options. 
• May be able to access Centrelink benefits

To open a First State Super income stream you will need a minimum investment of $20,000.

• Click here for a snapshot of the First State Super Retirement Income Stream and Transition to Retirement Income Stream 

Minimise tax

If you transfer all or part of your super to a First State income stream:

• any earnings on your income stream account are tax free while they remain in your income stream account
• you may enjoy tax concessions on income stream payments. While income stream payments are taxed in a similar way to salary, you may qualify for a tax offset of up to 15% and part of your income stream payment may be tax free. You receive tax free income stream payments after age 60.

Click here to find out more

Investment choice

Making the right choice of investment strategy is important when thinking about the amount of time you expect your income stream to last.

You can choose from 10 investment strategies with First State Super’s income stream accounts. Click here to find out more.

If you are transferring from an existing account with First State Super you must make a fresh election for your chosen investment strategy(ies). Otherwise your income stream account will be invested in the Trustee’s default strategy. Before choosing an investment strategy, please consider the "Investments" section of the First State Super Superannuation Income Stream Product Disclosure Statement (PDF 1765kb).

You should consider seeking advice from a licensed or authorised financial adviser before you choose your investment strategy or change your investment strategy.

Nominate your beneficiaries

You can nominate what will happen to any remaining income stream account balance in the event of your death:

• Before your income stream starts, you can nominate your spouse as a ‘reversionary beneficiary’. This means that if you die with money in your income stream account, your spouse will continue to receive your income stream (or have the option of cashing out your income stream account as a lump sum at any time), as long as he or she is your spouse at the time of your death. You cannot change your reversionary beneficiary once your income stream starts.
• If you have not nominated a reversionary beneficiary (or the nominated beneficiary dies before you or stops being your spouse), you can nominate one or more of your legal personal representative or your dependants as beneficiaries. The nomination may be either a ‘binding nomination’ or a ‘preferred nomination’. Click here for more information.

Where you do not nominate a reversionary beneficiary and a binding death benefit nomination is not in place, the Trustee must exercise its own discretion in determining the beneficiaries of any death benefit. We recommend that you seek advice from a licensed or authorised financial adviser to determine the best way to proceed.

What about the age pension?

It is possible in some circumstances to receive a Government Age Pension and other Centrelink benefits as well as income from a First State Super income stream.

Centrelink and the Department of Veteran’s Affairs have two tests to determine your eligibility for benefits – the income test and the assets test. You will only be entitled to receive Government benefits if your assets and your income are below the test levels. Income Streams do not qualify for an exemption from either test.

For further information call Centrelink Financial Information Services on 13 23 00 or visit www.centrelink.gov.au Centrelink provides this service free of charge.