A worked account-based example

The facts

At 1 July 2025, Test Member One has a $1,000,000 retirement pension and Test Member Two has $500,000 in accumulation. A $50,000 pension payment is recorded on 30 June 2026. The closing balance is $1,450,000. There are no other transactions and no reserves.

Weight the balances

For 364 days, retirement pension liabilities are $1,000,000 and total liabilities are $1,500,000. On the final day they are $950,000 and $1,450,000.

Average pension liabilities: (364 × $1,000,000 + $950,000) ÷ 365 = $999,863.01. Average total liabilities: (364 × $1,500,000 + $1,450,000) ÷ 365 = $1,499,863.01.

Calculate and interpret

The result is 66.664% exempt and 33.336% non-exempt, rounded to three decimals. Use unrounded intermediate figures, then round the displayed percentage. Apply it to eligible income from unsegregated assets across the income year, including accumulation-only periods. Segregated-asset income is treated separately.

The example assumes that retirement-phase eligibility, the pension standards and the chosen method are all confirmed. If any of these facts change, the fund may need a different treatment or specialist review.

Checklist

• Check the opening total of $1,500,000.
• Find the final-day $50,000 payment.
• Do not lodge using an illustrative calculation.