People aged over preservation age are eligible to commence an income stream from their super fund. Once a pension income stream recipient is aged 60 and over these drawings will be tax free.

However if under the age of 60 there will be tax on the taxable component of the drawings. This taxable component is made up of the concessional contributions made to the fund as well as associated earnings and can be found on your member statement. The taxable component of your pension received will be included in your individual tax return until you turn 60.