Pension Bonus - A bonus start to your retirement

From August, eligible members will see an estimated Pension Bonus in FirstNet or the CFS mobile app. This is an estimate only and is based on your eligibility, balance and the Pension Bonus rate at the time. Your final amount may differ.

The trustee reserves the right to reverse the Pension Bonus in certain circumstances, including:

• if the pension account is closed within the cooling‑off period
• if a Pension Bonus is discovered to have been paid in error
• if it is later determined that the member was partly or fully ineligible.

For more details, refer to the FirstChoice Wholesale Personal Super and Pension Product Disclosure Statement, available here.

No. If you meet the eligibility criteria, the Pension Bonus is automatically assessed and applied when your pension starts.

You need to have held at least one transferring FirstChoice super or pre-retirement account for at least 90 calendar days immediately before using it to commence your pension.

No. The Pension Bonus is a once-in-a-lifetime payment. If you start multiple pension accounts over time, the bonus only applies to the first one.

No. Cash and cash-like (deposit) options are excluded from the Pension Bonus calculation.

No, as amounts transferred to Pension via the SuperFirst Transfer facility are not eligible for Pension Bonus Calculation purposes. This is because the SuperFirst Transfer facility utilises First Sentier Strategic Cash.

Contributions and rollovers from external fund(s) can be combined with an existing eligible FirstChoice Super account, in qualifying investment options, prior to transfer to FirstChoice Wholesale Pension in order to qualify for the Pension Bonus. 

Yes, it does. The Transfer Balance Cap is the maximum amount of super savings you can use to commence a retirement‑phase income stream ($2.1 million from July 2026).

The Pension Bonus, when credited, may cause you to exceed your personal Transfer Balance Cap.

If you think you may exceed your cap, you may want to speak to your adviser or seek financial advice.

No. The Pension Bonus does not count towards your annual concessional or non‑concessional contribution cap limits.

The Pension Bonus can increase your minimum drawdown requirement in the year it is paid, because it increases your starting pension balance.

Minimum drawdown rates are set by the government and may change over time.

Yes, it forms part of the taxable component in your pension balance and is subject to the same withdrawal rules, tax treatment, and estate planning considerations as other similar components.

Potentially. Any Pension Bonus adds to the purchase price of your pension account. This will increase the value of your assessable assets and may also marginally increase your means-tested income. The Pension Bonus is automatically incorporated into your Centrelink/DVA Schedule documentation and does not need to be disclosed separately. Whether it will affect your benefits will depend on the level of your benefit and the manner in which you are assessed.

The Pension Bonus is paid only once per member and is paid on the first pension started. It is not reversible or transferable to another pension. However, if you start multiple pensions on the same day, then all accounts will be assessed for eligibility and any subsequent Pension Bonus will be applied accordingly.

As investments are sold down to cash on notification of death, death benefits paid in the form of pension are not eligible for Pension Bonus.

Anyone over the age of 50 will see an estimated Pension Bonus figure by logging into their account online or via the CFS mobile app. This age was chosen as research shows that members over 50 are more likely to commence retirement planning.