Draft super reform regulations released

Tuesday 20 December 2016

Treasury has released an exposure draft of regulations giving effect to a number of the Government’s superannuation reform measures.

The draft regulations amend corporations, tax and superannuation regulations to support the introduction of the new $1.6 million transfer balance cap, including:

  • Changing the period of time in which a product disclosure statement is required to be given to a member where a new accumulation interest is created as a result of a commutation authority for an excess transfer balance amount
  • Expanding the circumstances in which certain income streams, including market linked pensions, can be commuted to include commutations where the transfer balance cap is, or expected to be, exceeded
  • Providing an exemption from the requirement for an unsegregated fund to obtain an actuary’s certificate requirements to determine exempt current pension income, where the fund is only paying account based pensions or market linked pensions
  • Expanding the definition of rollover superannuation benefit to include superannuation death benefits paid to a dependent who is eligible to receive a death benefit pension
  • Preventing lump sum commutations from counting towards minimum pension payment requirements

Other measures covered in the draft regulations include:

  • Preventing individual’s from claiming a deduction for personal contributions to a fund that provides defined benefit interests, where the fund advises that it does not accept deductible contributions
  • Removing the fund-capped contribution limit restriction, which prevents superannuation funds from accepting a single non-concessional contribution (NCC) in excess of the NCC cap
  • Simplifying and consolidating the range of processes relating to release authorities
  • Prescribing the subsidiary objectives of the superannuation system

Submissions on the draft regulations are due by 10 February 2017.

Further information

Treasury, Superannuation reform package - regulations, 16 December 2016

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