Taxation on Pension Income Stream

My wife wants to retire in December this year aged 59. Her super balance is healthy and consists of a taxed element and a tax free element. There is no taxable part of her balance. Can I then assume that when she begins her income stream in January, she will not have to incur any tax even though she is under 60? Any thoughts??

 

AFAIK super is not accessible until you hit 60 (or other earlier trigger for release - which would be taxable)

 

I think there’s tax :Key superannuation rates and thresholds

 

It depends. Seeking specific financial advice would be wise. The low rate cap may be a factor, or may not if she takes a pension instead. Her preservation age will also be a factor.

Also the fund earnings remain taxed at 15% (in the fund) while she is under 60.

 

Depends if she has reached preservation age then she can start the pension but will get taxed until reaches 60 and retires

 

Retirement is met. However is not a feature of a pension. She could resume working after starting a pension for example. A pension does not contain a requirement to be retired.

 

I have learnt that she is not taxed on the earnings of the tax free part but will be taxed at her marginal tax rate on the taxed element which makes up 40% of the total balance. As she turns 60 in March, she won't pay much tax considering there is the 15% tax offset available.