Transition to Retirement Income Stream (TRIS)

Utilising TRIS, you can have the same take home net salary, pay less tax and increase your super without changing how you work.

If you have reach preservation age¹ ( 55 years old if born before 1 July 1960; 60 if born after 1 July 1964) you can salary sacrifice a portion of your employment income into superannuation and simultaneously draw down on your superannuation. This is done by using a non-commutable allocated pension (NCAP). The NCAP needs to be between 3%-10% of the member balance².

Importantly, there is no requirement for you to reduce your working hours.

Because of the tax benefits, an NCAP strategy can boost your superannuation savings without impacting on your take-home income.


This example assumes you are over 60, so that there is no tax payable on the TRIS. If you are between your preservation age and age 60, the TRIS will be taxed at your personal marginal rate less tax offset of 15%.

  • Gross Salary $120,000 pa with no salary sacrifice
  • Super Balance $200,000
  • Minimum TRIS is 3% or $6,000 pa

Salary sacrificing some of your salary into super means you are converting some of the gross salary you would normally earn into a concessional super contribution. An example demonstrating the benefit of salary sacrificing $10,000 into super is as follows:

No Salary Sacrifice & NCAP If Salary Sacrifice into Super & NCAP
Gross Salary $120,000 $110,000
Personal Tax $34,150 $30,300
Extra Personal Tax Paid $3,850 Nil
Extra Super Contribution Nil $10,000
Extra Super Tax (paid by super fund) N/A $1,500
Benefit of Salary Sacrificing $10,000 into super (this is the extra saving you have, but it is inside super) N/A $2,350
NCAP Nil $6,150
Take home after tax pay $85,850 $85,850


  1. Preservation Age:
  2. Minimum Annual Payments for Super income streams

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