Quick answer is yes!
When commencing that pension, you need to revalue all assets in accumulation to the date when you want to commence a pension.
The percentage of taxable and tax free component of your member balance will be percentage of the commencement of new part pension.
You cannot cherry pick contributions made into super to commence a pension interest (ie tax free amount, when accumulation consists of tax free contributions, taxable contributions and taxable income).
If a member wishes a 100% tax free (non-taxable component) pension – you need to contribute the tax free amount (non concessional contribution) then commence a pension interest – prior to contributing or earning any taxable amounts. If you have already had an accumulation account with taxable component, you will need to following the steps as below to achieve a 100% tax free pension account.
iCare Super will help members have all valuations of assets up to date on the date of pension commencement. Then you can nominate how much is to go into pension phase and iCare Super team will work out the taxable and tax free component and percentage for you.