Transition to Retirement (TRIS)
Access some of your super while you're still working.
A Transition to Retirement Income Stream (TRIS) lets you access your super before you fully retire. If you've reached preservation age but are still working, TRIS allows you to start drawing a pension — often while using strategies to boost your super at the same time.
Think of TRIS as a "halfway house" between full-time work and full retirement. It can help you reduce your working hours while maintaining your income, or it can be used as a tax-planning strategy while you keep working.
🔑 TRIS at a Glance
- Eligibility: Reached preservation age (55–60 depending on birth year)
- Maximum withdrawal: 10% of your account balance per year
- Minimum withdrawal: 4% of your account balance per year
- Tax on earnings: 15% (same as accumulation — no tax benefit)
- No lump sums: Must be taken as income stream payments
How TRIS Differs from a Regular Pension
A TRIS is not the same as a regular account-based pension. It has significant restrictions:
⚠️ TRIS (Pre-Retirement)
- Maximum 10% withdrawal per year
- Cannot take lump sums
- Earnings taxed at 15%
- Doesn't count toward Transfer Balance Cap
- Available from preservation age
✅ Account-Based Pension (Retirement)
- No maximum withdrawal
- Can take lump sums (commutations)
- Earnings taxed at 0%
- Counts toward Transfer Balance Cap
- Requires condition of release
⚠️ The Tax Change That Made TRIS Less Attractive
Before 1 July 2017, TRIS earnings were tax-free (like a regular pension). This made TRIS extremely powerful for tax planning. Now, TRIS earnings are taxed at 15% — the same as accumulation. This significantly reduced the tax benefits, though TRIS can still be useful in certain situations.
When TRIS Converts to a Regular Pension
Your TRIS automatically converts to a regular account-based pension (with all its benefits) when you satisfy a full condition of release:
- You turn 65
- You cease employment after age 60
- You retire (intend never to work 10+ hours/week again)
Once converted, the 10% cap is removed, earnings become tax-free, you can take lump sums, and the balance counts toward your Transfer Balance Cap.
The Classic TRIS Strategy: Salary Sacrifice + TRIS
The most common use of TRIS is combining it with salary sacrifice to boost your super while maintaining your take-home pay:
💡 How It Works
- Salary sacrifice into super — Redirect part of your pre-tax salary into super (taxed at 15% instead of your marginal rate)
- Draw down your TRIS — Take pension payments to replace the income you salary sacrificed
- Net result: Similar take-home pay, but more money going into super at a lower tax rate
Example: David, Age 58, Earning $90,000
David has $400,000 in super and earns $90,000/year.
Without TRIS strategy:
- Taxable income: $90,000
- Tax on salary: ~$20,000 (approx, including Medicare)
- Super growing through SG contributions only
With TRIS + salary sacrifice:
- Salary sacrifice $20,000 into super (taxed at 15% = $3,000)
- Draw $20,000 from TRIS (tax-free if taxable component, age 58)
- Net result: Similar take-home pay, but $20,000 extra in super, taxed at 15% instead of marginal rate (~34.5%)
- Tax saving: ~$3,900 per year
Note: This is simplified. Actual benefits depend on your specific tax situation, super components, and contribution caps.
When Does TRIS Make Sense?
✅ TRIS May Be Useful If:
- You're a higher income earner (32.5%+ tax bracket)
- You want to boost super before retirement
- You want to reduce working hours but maintain income
- You have a decent super balance to draw from
- You're within a few years of retirement
❌ TRIS May Not Suit If:
- You're in a low tax bracket (limited benefit)
- You have a small super balance
- The fees outweigh the benefits
- You're likely to satisfy a full condition soon anyway
- You don't want the complexity
TRIS and Centrelink
Here's an important distinction many people miss: while super in accumulation phase is generally exempt from Centrelink assessment if you're under Age Pension age (67), a TRIS is fully assessed — regardless of your age.
The logic? Centrelink assesses assets that are accessible to you. Because you can access up to 10% of your TRIS each year, Centrelink treats it as an available asset:
- Assets test: Your TRIS balance counts as an assessable asset
- Income test: Deeming rules apply to calculate deemed income from your TRIS balance
This means starting a TRIS could affect Centrelink payments (such as Disability Support Pension or Carer Payment) even if you're well under Age Pension age. If you're receiving any income support payments, check the impact before starting a TRIS.
Learn more about Centrelink assessment rules →
Summary: TRIS Key Points
| Feature | TRIS |
|---|---|
| Eligibility | Reached preservation age, still working |
| Maximum drawdown | 10% of balance per year |
| Minimum drawdown | 4% of balance per year (or 2% if reduced rate applies) |
| Tax on earnings | 15% (same as accumulation) |
| Tax on payments (age 60+) | Tax-free (from taxed fund) |
| Lump sums | Not permitted |
| Converts to pension when | You meet a full condition of release |
| Transfer Balance Cap | Doesn't count until conversion |
Is TRIS Right for You?
The benefits depend heavily on your income, tax bracket, super balance, and how close you are to retirement. Get personalised guidance.
Last updated: January 2026
Disclaimer
NOT PERSONAL ADVICE — TRIS strategies involve complex tax calculations. The examples shown are simplified. Seek professional advice for your situation.