From www.heffron.com.au: Many members with market linked pensions are opting to wind them up, so it is important to understand the implications of tax components during this process, especially regarding inheritance.

By carefully managing the commutation and the establishment of new account-based pensions, individuals can significantly optimise their tax-free component.

Strategies include fully commuting pensions before restarting new ones to blend tax components effectively, which may help retain more tax-free money in superannuation.