The Government has released draft superannuation regulations for consultation, including implementation of some of the ‘Fair and Sustainable’ super changes and to set subsidiary objectives for the super system.
The draft regulations, which were released on Friday the 16th of December, include:
- Defining total superannuation balances
- Release authorities
- Lowering the annual non-concessional cap
- Improving access to tax deductions for personal contributions
- Implementing the transfer balance cap
This follows from the passage of the Treasury Law Amendment (Fair and Sustainable Superannuation) Act 2016 and the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 in November.
The proposed regulations would also set the following as the subsidiary objectives of superannuation:
(a) to facilitate consumption smoothing over the course of an individual’s life; and
(b) to manage risks in retirement; and
(c) to be invested in the best interests of superannuation fund members; and
(d) to alleviate fiscal pressures on the Australian Government from the retirement income system; and
(e) to be simple and efficient, and to provide safeguards.
The Government intends to set the primary objective for superannuation in legislation.
Treasury says that: “Further draft regulations to support innovative income stream products and valuation rules for the transfer balance cap will be released for public consultation in early 2017, prior to the commencement of the measures contained in the reform package.”
Submissions in response to the regulations close 10 February 2017.