If your client has a Term Allocated Pension (TAP) expiring this financial year, there may be some things you need to do before it ends, which we’ve outlined below.

What you need to do if your client’s TAP is ending

If your client’s holdings are invested, you’ll need to sell down their assets to a cash account to fund future pension payments.

Please note, if a sell-down doesn’t happen before the account closure date, we may need to sell down your client’s holdings for you.

As part of the sell-down process, we may also need to temporarily remove you as an adviser from your client’s account. If we need to remove you from their account, you can contact us after the account is closed to reinstate your access.

How are pension payments calculated?

To ensure the account balance is fully paid to your client by the term end date, or in June of the following year, all pension payments will be calculated using the account balance on 1 July.

Any account balance movements due to investment performance and or fees may mean that your client’s final pension payment could be either more or less than the preceding one.

Contact us

Need help? If you’re an adviser, please contact us via live chat in Adviser Online. If you’re a client, please call

1800 025 063

Talk to us today

To speak to a specialist complete this form and we'll be in touch.

Help and support

Visit our Adviser Help Centre and search our adviser FAQs. 

 

Additional information

This information is provided for the use of licensed and accredited brokers and financial advisers only. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products. This information does not take into account any person’s objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire or continue to hold any products mentioned on this page, a person should obtain and review the offer documents relating to that product and also seek independent financial, legal and taxation advice.

Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (MBL).

Any information on Macquarie Wrap products has been prepared by Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237492 RSEL L0001281 (MIML). The Macquarie Separately Managed Account is issued by Macquarie Investment Services Limited ABN 73 071 745 401 AFSL 237495 (MISL). In deciding whether to acquire or continue to hold a product, a person should consider the PDS, IDPS Guide, or other relevant offer document(s) available on the Macquarie website. Our Target Market Determinations are available at macquarie.com.au/TMD.

Funds invested on your behalf by MIML, or investments in the SMA other than cash on deposit with MBL, are not deposits with or other liabilities of MBL or any other entity of the Macquarie Group and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. None of MBL, MIML, MISL or any other member of the Macquarie Group guarantees any particular rate of return or the performance of the investments, nor do they guarantee the repayment of capital.

Any information on this page in relation to mortgages has been prepared by Macquarie Securitisation Limited ABN 16 003 297 336 AFSL and Australian Credit Licence 237863 (MSL).