The Brighter Super Retirement Reward
The Retirement Reward is a potential reward for eligible members who hold a Brighter Super Accumulation or Transition to Retirement (TTR) account and open a Brighter Super Pension account.
Basically, it’s a dollar reward that gives you a portion of the tax we’ve set aside to pay the Australian Taxation Office (ATO) when growth assets (like shares) are sold.
But when a Brighter Super member takes these growth assets from their Accumulation or TTR account (which are taxed) into a Brighter Super Pension account (which is not taxed), then no tax is paid when/if the assets are sold at a profit.
This unpaid tax available is then available as a reward for retiring with us. We call it the Retirement Reward.
Retire with up to $9,5001 more
Depending on how much money you have invested in growth assets when you transfer into your Brighter Super Pension account, you could get a reward of up to $9,500.
Payment is automatic
If you’re eligible for a Retirement Reward, you do not need to do a thing. We will let you know when we automatically add it to your Brighter Super Pension account after the end of the financial year around September, provided you are still a member.
Your Reward is tax free
Your Retirement Reward is not considered a contribution, which means it will not count towards your contribution cap (the limit on how much money you and your employer can contribute to your super each financial year).
Retiring Soon?
If you're considering retiring in the next 6–12 months, now might be a good time to speak to one of our financial advisers. Already have a financial adviser outside of Brighter Super? They can help you make informed decisions about your super. If you do not have a financial adviser, Brighter Super’s in-house team of financial advisers is here to help you. Find out more about financial advice.
How does the Retirement Reward work?
While you are working
We invest your super savings in various assets and set aside money to pay capital gains tax (CGT) to the ATO when these assets are sold, and profits are made.
When you decide to stop working full time
If you open a Brighter Super Pension account, your money moves into a tax-free environment, meaning we don’t have to pay as much CGT.
Get your reward
If you are eligible, we take a portion of the money that was unpaid CGT tax, and pay it into your account as a reward and a thank you for retiring with us.
Am I eligible?
You could be eligible for the Brighter Super Retirement Reward if:
- You have been a member with Brighter Super for over 12 months.
- You have money invested in a Brighter Super Accumulation or Brighter Super Transition to Retirement Account and that money is invested, at least in part, in growth assets.
- You are using that money to start a Brighter Super Pension account.
Please see frequently asked questions below for more information on eligibility and which investment options have growth assets.
How much Retirement Reward could I get?
When you start your Brighter Super Pension account, we calculate your Retirement Reward using the Retirement Reward Rate for that financial year. This is based on the eligible money you first put in.
For the 2023/24 financial year you could get a reward of up to $9,5001.
Here is what the reward could look like:
| Transfer amount |
Retirement Reward |
| $200,000 |
$1,000 |
| $500,000 |
$2,500 |
| $800,000 |
$4,000 |
| $1,000,000 |
$5,000 |
| $1,700,000 |
$8,500 |
| $1,900,000 |
$9,500 |
Retirement Reward frequently asked questions
Who is not eligible for the Retirement Reward?
- Brighter Super Optimiser members who open a Brighter Super Optimiser Pension account in the 2023/24 financial year. However Brighter Super Optimiser members who open a Brighter Super Pension account will be eligible from the day they open their account.
- Members who have a Transition to Retirement Account, who continue to transition to retirement.
- Brighter Super pension accounts at the time they revert to a surviving spouse or partner.
- Death Benefit Pension accounts.
- Members who have previously received a Retirement Reward from Brighter Super.
- For members with a Defined Benefit, the Retirement Reward is not available for the Defined Benefit portion of your account. However, the Accumulation portion of your account (such as salary sacrifice) may be entitled to the Retirement Reward. To discuss your eligibility, please call us on 1800 444 396.
How is the Brighter Super Retirement Reward Calculated?
Your Retirement Reward will be calculated on the money you have transferred into your new Brighter Super Pension account from:
- your Brighter Super Accumulation account
- your Brighter Super Transition to Retirement Account
- money you may have rolled over from another super fund
- any new lump sum contributions.
It will be calculated:
- at the determined Retirement Reward Rate for that financial year, and
- only on that portion of your account balance that is invested in growth assets at the time of opening your Brighter Super Pension account.
The amount of your Retirement Reward depends on a number of factors:
- The amount of money you transfer to your Brighter Super Pension account.
- Current investment market conditions.
- The amount of tax we’ve set aside.
- What you’re invested in during the period leading up to your transfer.
- The investment options you’re invested in at the time you transfer.
It is important to know that there may be times when there is no Retirement Reward, and this will be as a result of any or all of the above factors.
See how Mike’s Retirement Reward is calculated
Mike’s opening account balance for his new Brighter Super Pension account is $400,000.
At the time of opening his new Pension account, Mike’s account balance had been 100% invested in Brighter Super’s MySuper investment option for the previous 12 months.
As 75% of Brighter Super’s MySuper investment option is invested in Growth assets, this means that 75%, or $300,000, of Mike’s account balance would be considered eligible for the purposes of calculating his Retirement Reward.
In the example below you can see that for the 2023/24 financial year, Mike would have earned a Retirement Reward of $1500.
| Using the formula, A x B/12 x C where: |
Mike |
| A is the Members balance invested in growth assets at the time of transfer |
$300,000 |
| B is the number of months of the prior 12 months that account balance was invested in the growth assets |
12 months |
| C is the determined pension reward rate |
0.5% for FY23/24 |
| Total |
$1,500 |
How frequently is the Retirement Reward calculated?
The Retirement Reward is paid once, when you open a Brighter Super Pension account. It is calculated at the end of each financial year. Eligible members will be informed in August and paid in September, following the end of the relevant financial year.
What was the Retirement Reward Rate for the 2023/24 Financial Year?
The Retirement Reward rate that was applied for FY23/24 was 0.5%.
What was the Retirement Reward Rate for previous years?
This is the first year Brighter Super has paid the Retirement Reward (FY23/24).
Could the Retirement Reward Rate change each financial year?
Yes. The Retirement Reward Rate will be based on the balance of the deferred tax liability of the fund and will be determined each year. The Rate declared may be 0% in some years.
Why is the Retirement Reward only calculated on growth assets?
The Retirement Reward is only calculated on investment options that contain growth assets because it is on these assets that a Capital Gains Tax (CGT) deferred tax liability arises.
Which Brighter Super investment options have growth assets?
As of 30 November 2023, Brighter Super has 14 investment options with an allocation to growth assets:
| Investment option |
Percentage of option invested in growth assets as of 30 November 2023 |
| MySuper |
75% |
| Growth |
90% |
| Balanced |
75% |
| Conservative Balance |
59% |
| Indexed Balance |
75% |
| Stable |
39% |
| Secure |
9% |
| International Shares |
100% |
| Australian Shares |
100% |
| Property |
75% |
| Socially Responsible |
75% |
| Socially Responsible Australian Shares |
100% |
| Smoothed Return (Closed to new members) |
As per Balanced investment option |
| Capital Guarantee (Closed to new members) |
As per Balanced investment option |
For more information on Brighter Super’s investment options, and up-to-date asset allocations, please refer to our Investment choice guide (brightersuper.com.au)
Does the Retirement Reward count towards my contribution cap?
No, we do not count your Retirement Reward as a concessional contribution (before-tax contributions to super). It is a tax-free bonus payment that we add to your account when you open a Brighter Super Pension account with us. This position is being confirmed with the ATO. Should the ATO consider the Retirement Reward to be a concessional contribution, it should count towards your concessional contribution cap. If the ATO notifies the fund the payment is subject to concessional contribution tax, we will notify you and deduct an amount equal to 15% of the bonus amount paid from your account and pay that amount to the ATO.
Does the Retirement Reward count towards my Transfer Balance Cap?
Yes. The Retirement Reward will count towards your Transfer Balance Cap, which is the amount of super you can use to start a tax-free Pension account.
From 1 July 2023, and for the 2023/24 financial year, the general transfer balance cap is $1.9 million so the maximum Retirement Reward you could receive in that situation is $9,500. This is calculated as 0.5% of the Transfer Balance Cap amount. Some individuals may have a different Transfer Balance Cap so you should check your cap with the ATO, or through your MyGov account.
What if I have already met or exceeded my Transfer Balance Cap?
If we have recorded that you have met or exceeded your Transfer Balance Cap, the Retirement Reward will be paid to an existing Brighter Super Accumulation account, or we will create a new Accumulation account for you.
What is the 12 month rule associated with the Retirement Reward?
If you are eligible for a reward you need to be aware of the rule concerning withdrawals3 from your Pension account within your first 12 months.
If you withdraw 75% or more of your Pension account balance within 12 months of receiving a Retirement Reward, your entire Retirement Reward will be reversed. Once you’ve passed the 12-month period, you can make a withdrawal and still keep the entire Retirement Reward.
Will this offer be available to Optimiser account holders?
An Optimiser account holder who opens a Brighter Super Pension account before 1 June 2024 will be eligible for a Retirement Reward payment this financial year. The Retirement Reward is not available with Optimiser Pension accounts.
How will the Retirement Reward be calculated for Optimiser account holders who open a Brighter Super Pension account?
The Retirement Reward will be calculated from the start date of their Pension. For example, if they open a Pension account on 1 January 2024, it will be calculated from this date.
Will Optimiser account holders who open a Brighter Super Pension account have their Retirement Reward backdated to 1 July 2023?
No. The Retirement Reward will be calculated from the date they open a Brighter Super Pension account.
How can you or your financial adviser calculate your potential Retirement Reward?
We are currently working on a calculator that will let you determine what your Retirement Reward will be. Until then, you or your financial adviser could use the following formula:
| A x B/12 x C where: |
To find out more |
| A is the Members balance invested in growth assets at the time of transfer. |
To confirm your latest account balance and how your money is invested, please log in to Member Online at brightersuper.com.au.
To confirm which investment options have an allocation to growth assets please refer to our Investment choice guide for your account at brightersuper.com.au/pds-and-guides.
|
| B is the number of months of the prior 12 months that account balance was invested in growth assets. |
To confirm how long your money has been invested in growth assets, please log in to Member Online at brightersuper.com.au. |
| C is the determined pension reward rate. |
The Retirement Reward Rate for the 2023/24 financial year is 0.5%.
The Retirement Reward Rate for each financial year will be determined at the end of the financial year. The Retirement Reward Rate will be based on the balance of the deferred tax liability of the fund. The Retirement Reward Rate may be declared 0%. |
1 This is based on Brighter Super's FY2023/24 Retirement Reward Rate of 0.5%, calculated on the 1 July 2023 transfer balance cap of $1.9 million. A Retirement Reward is not payable on any amount higher than transfer balance cap. The government changes the transfer balance cap limit from time to time. Eligibility criteria apply. Please see 'Who is eligible' and 'Who is not eligible'.
3 Withdrawals include your regular retirement income stream payments and cash withdrawals, as well as any funds you roll back into your Brighter Super Accumulation account. It doesn't include withdrawals related to a death benefit payment from your income stream account. Nor does it include withdrawals from your income stream account that are rolled back into your Brighter Super superannuation account to consolidate accounts and which are then immediately returned to your income stream account.
