This guide outlines the steps for transferring funds from an existing Standard Income Stream or Transition to Retirement Income Stream account back to a Personal Super (accumulation) account, either in full or in part. This process is also known as a pension refresh. Transfers can be made to a new or existing Personal Super account, investments are transferred as they are, without being sold. Please consider any potential Centrelink impacts when transferring out of an Income Stream account.
After the commencement of an income stream, additional contributions or rollovers are not permitted. Should any contributions or rollovers be received post-commencement, the existing income stream account balance may be transferred to a new or existing accumulation account, allowing for the initiation of a new income stream with all or part of the balance. This process can be competed with the 'Transfer between accounts' feature on the Netwealth website, meaning no further applications are required.
If you are a client you should seek financial advice before using this facility as there could be financial, tax or social security implications from moving your benefits between income stream and accumulation phase.
This guide covers:
- How advisers can transfer a client’s full of part of Income Stream account to an existing or new Personal Super account.
- How investors can transfer their own Income Stream account to a new or existing super account, either in part or in full.
- What can delay a pending internal transfer?
- What details are transferred to the new accumulation account?
How advisers can transfer a client’s full Income Stream account to an existing or new Personal Super account
Advisers can transfer an Income Stream account to a Personal Super account entirely online, with no paperwork required. Internal transfers are typically finalised on the same day the transfer request is submitted.
Transfers using this functionality are only allowed if the Income Stream and Personal Super accounts are under the same client ID.
Step 1: Select the Income Stream account to transfer from
- Log in to your Netwealth online account.
- Use the search bar to select your client’s Income Stream account.
- Navigate via the main menu to Activities & Tasks > Transfer between Accounts.
- Select the transfer type, either full or partial.
- Choose the Income Stream account you wish to transfer from under ‘Transfer From’.
Step 2: Address any validation issues
If issues preventing the transfer are identified, you will be notified how to resolve them. Once resolved, you can resubmit the transfer request. Validation issues could be things such as: pending transactions or payments. Read more about issues that can cause delays below. This enhancement allows you to address issues proactively eliminating the need for manual review and can reduce processing times.
Step 3: Select the super account to transfer to
Choose whether to transfer to an existing Personal Super (accumulation) account or create a new Personal Super account under ‘Transfer To’.
Step 4: Review and confirm beneficiary details
If transferring to a new accumulation account
- You may choose to transfer the existing binding death nomination from the Income Stream account.
- If no nominations exist, this section will remain blank.
- Note: Reversionary nominations are not applicable to accumulation accounts and will not be carried over.
If transferring to an existing accumulation account
- Beneficiary nominations from the Income Stream account will not transfer.
- Existing nominations on the accumulation account will remain unchanged.
To update or add a binding death nomination, wait until the transfer is complete, then submit a new nomination form.
Step 5: Review and confirm advice fee details
As part of the Delivering Better Financial Outcomes (DBFO) package, you are now required to include the account number specific to the member advice fees to be charged on a client's account when establishing a fee arrangement.
If transferring to a new accumulation account:
- You have the option to either not apply fees to the new account or to transfer existing fixed term fees or ongoing fees to the new account. If there are ongoing fees, client consent is required. You can either click the box 'Send the client the electronic consent for their approval' or you can download a fee consent PDF from the 'Update Fees' page after the transfer has been made. Please note fees will not be charged until after the consent has been provided.
If transferring to an existing accumulation account:
- The fee structure of the existing account will apply.
To make changes to the fee structure, wait until the transfer is complete, then update fees via the ‘Update Fees’ page. You will need a new consent form completed to make changes to the fee structure.
Step 6: Select the assets to be transferred (partial only)
When transferring a partial amount from a Personal Super account to an Income Stream account:
- You can select each asset and select an option from the drop down as to the amount to transfer and retain.
- If client holds Managed Accounts, it will all be retained in the current account and will not be transferred. Additional refinements will be coming soon.
- If there are pending buy or sell orders for Managed Funds, you can only either retain all
- If there are pending orders for shares, you can only retain all in Super
- A minimum of $10,000 must be retained in the super account.
Market price will be used on transfer. The prices may fluctuate when your transaction is processed. Dollar amounts and percentages will convert to Unit amounts rounded down.
A partial transfer may trigger an Auto Sell Down if the minimum cash requirement is breached. Please review your cash nomination to prevent this from occurring.
Step 7: Acknowledge and submit
Confirm the ‘Acknowledgement and Consent’ statement, then select ‘Submit’. You can also download a pre-filled transfer form if needed for your records.
Step 8: Review and confirm
Review the summary page and confirm to finalise the transfer. Transfers are generally completed within 1 business day, often within 30–60 minutes, but may take up to 3–5 days.
How advisers can transfer a partial amount from a client’s Income Stream account to an existing or new Personal Super account
To complete a partial transfer, follow these steps:
- Log in to your Netwealth online account.
- Select the Income Stream account you wish to transfer from using the search bar.
- Navigate to ‘Activities & Tasks’ > ‘Partial Transfer between Accounts’.
- Follow the wizard prompts to provide transfer instructions.
- Download and sign the pre-populated form.
- Upload the completed form via ‘Activities and Tasks > Document Upload’.
- You will receive a transaction ID for reference.
Transfers usually take 5–10 business days. Netwealth will contact you if additional information is required.
How investors can transfer their Income Stream account to a new or existing super account
If you have online transaction access, follow these steps:
- Log in to your Netwealth online account.
- Navigate to ‘Transactions > Full Transfer Between Accounts’.
- Complete the steps in the transfer tool.
- Download and sign the pre-populated form.
- Submit the form to Netwealth via the listed methods (email, post, etc.).
If you do not have online transaction access, complete the ‘Transfer from Income Stream ’ form and send it to Netwealth via email or post. Contact details can be found at the bottom of the form.
Tips for how to complete the form
| Step 1. Provide member details |
Input the details of the applicants' current Netwealth income stream account, that is, the Client name and Client number and/or account number. This information can be found on any report letter or statement provided by us, or at the top right-hand side of the screen when any account has been selected. |
| Step 2. Transfer details - Account type to transfer to |
Select to transfer to personal super.
|
| Step 2. Transfer details - Additional contribution/rollover expected |
Input the amount of your additional contribution/rollovers in this step. Netwealth will wait until the additional amount has been received before transferring to a new income stream. |
| Step 3. Additional transfer details- Account type | Choose to transfer to a standard income stream or transition to a retirement income stream. |
| Step 3. Additional transfer details - Amount to transfer | Transfer some or all of the cash/investments to your new income stream account. If you are leaving an accumulation account open, the minimum amount to leave in super is the Netwealth minimum cash requirement of $10,000. |
| Step 4. Declare condition of release | To commence your income stream and access preserved benefits or restricted non-preserved benefits, a member must satisfy one of the conditions of release. Elect the appropriate condition here. |
| Step 5. Nominate your income stream details | Input the frequency, and amount of income you would like to get paid, before any taxes and other deductions come out. |
| Step 8. Provide notice of intent to claim a tax deduction for personal contributions | If you have made a non-concessional contribution and would like to claim a tax deduction and have not yet, see How to get started tips above on how to process this online. |
| Step 9. Claim your tax-free threshold and/or notify your Tax File Number (‘TFN’) | If the account holder is under the age of 60 and would like to claim the tax-free threshold, see How to get started tips above for instructions. |
| Step 10. Nominate bank account details (optional) |
Only complete this step if the nominated account in which the income stream payments are to be paid differs from the nominated account details currently on file. If you are adding a brand new nominated account, please see our guide to adding new nominated bank details. |
| Step 13. Read and sign this client declaration | Investors (and in some instances adviser clients) must read and sign this declaration. |
| Step 14: Signatory - Advisers (acting on behalf of their clients) |
Advisers must read and sign the adviser declaration (to be completed by an Adviser Representative providing instruction on behalf of their client). As long as account existing details are being carried over from the existing account into the new account in steps 6, 10 and 11 of the form, no client signature is required on this form. If these details in these sections are being updated, client sign off is required in Step 13. |
What can delay a pending internal transfer?
- ASX Share trades; sell or buy.
- Term deposit purchase; term deposits are only confirmed on Fridays.
- Benefit payment; only one exit on a Super Accelerator account (either accumulation or income stream) can be processed per day, so this will delay one business day.
- No nominated bank account; if there is no nominated bank account on the income stream account it can not go through and will be delayed exponentially.
- Managed Account (MA) that is not suspended; suspensions can be done by Adviser Representative online, however this will delay one business day.
- Contribution (DDR); contributions that are done via direct debit request (DDR) can delay up to 7 days (non-business days), OSKO should be instant.
- Pend-screen sell; if there is a fund in the pending screen for sell that was initiated in the previous month or earlier, it will need to clear before going through. If there is a cancel button on the pend screen, this can be cancelled. If not, the instruction has already been sent to the fund manager.
- Partial transfers; if there is a pending managed account rebalance order, Netwealth cannot proceed until this is cleared. If there is a pending buy for an asset that is not already held in the account, Netwealth cannot proceed until the buy is complete.
What details are transferred to the new accumulation account?
When Netwealth processes the transfer between accounts, most of the details of the account are transferred over. This includes:
- Bank account information
- Cash settings (including dollar cost averaging profiles)
- Binding death benefit direction
- Adviser fees
- Adviser code
What is not transferred?
Reversionary beneficiaries are unable to be transferred to accumulation accounts. If a reversionary beneficiary nomination is to be re-established for a pension account, this can be facilitated with the Superannuation Change of Details form.