The Government has released “innovative” draft new rules for superannuation pensions.
Minister for Revenue and Financial Services, Kelly O’Dwyer, has released the draft superannuation income stream regulations, Treasury Laws Amendment (Innovative Superannuation Income Streams) Regulations 2017, for public consultation.
Minister O’Dwyer, said the regulations, when made, will “continue the implementation of the Government’s superannuation taxation reforms”.
“These new rules will remove taxation barriers to the development of new products that will provide greater flexibility in the design of income stream products to give more choice to consumers, while ensuring income is provided throughout retirement.”
“The development of these new products is a precursor to the development of Comprehensive Income Stream Products for Retirement, or CIPRs.”
The Explanatory Statement to the draft regulations says:
The purpose of Schedule 1 to the Regulations is to introduce a new set of design rules for lifetime superannuation income stream products that will enable retirees to better manage consumption and longevity risk in retirement. The new rules are intended to cover a range of innovative income stream products including deferred products, investment-linked pensions and annuities and group self-annuitised products. The overarching goal of the rules is to provide flexibility in the design of income stream products to meet consumer preferences while ensuring income is provided throughout retirement. Superannuation funds and life insurance companies will receive a tax exemption on income from assets supporting these new income stream products provided they are currently payable, or in the case of deferred products, held for an individual that has reached retirement.
Submissions in response to the draft regulations close Wednesday the 12th of April 2017.
“I encourage all interested stakeholders to provide their views so that we can give effect to these important reforms as effectively as possible,” said Minister O’Dwyer.