Treasury has released an exposure draft of “minor and technical” changes to the recently legislated Fair and Sustainable superannuation reform package.
“This draft legislation gives effect to amendments that resolve issues identified after the passage of the Treasury Law Amendment (Fair and Sustainable Superannuation) Act 2016 and the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 on 23 November 2016,” says Treasury.
The proposed changes, contained in the Treasury Laws Amendment (2017 4 Measures No. 2) Bill 2017: superannuation reform package amending provisions, relate to
- the transfer balance cap
- changes to the concessional contribution rules
- objectives of superannuation
- changes to the transition to retirement income stream rules
The draft Explanatory Memorandum says there are two proposed changes to Transition to Retirement Income Streams (TRIS).
“The amendments in relation to the TRIS rules relax the existing prohibition on TRISs ever being in the retirement phase. As a result, a TRIS will now be in the retirement phase if the member has satisfied a condition of release with a nil cashing restriction,” says the EM.
“The amendments also modify section 294-110 of the IT(TP) Act 1997 to ensure that a fund can apply CGT relief in respect of assets that cease to be segregated current pension assets when the broader TRIS changes come into effect.”
The proposed draft legislation would also remove from the Legislation Act 2003 the requirement to prepare a statement of compatibility with the Superannuation (Objective) Act 2016. This was inserted by the Fair and Sustainable reform package, but, as noted in the draft Explanatory Memorandum, the Super Objective Bill was not enacted in 2016 and is still before the Parliament.
The Fair and Sustainable Superannuation Bill, now Act, was primarily debated in the Parliament on the 22nd and 23rd of November 2016.
Submission in response to the exposure draft are due 24 April 2017.
Treasury has also released exposure drafts on the following topics:
- Expanding The Range Of Capped Defined Benefit Income Streams
- Income Tax Relief For Transfers Within A Fund To A Mysuper Product