Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulation 2017

Thursday 30 March 2017

A regulation has been registered to give full effect to a number of the Government’s superannuation reform measures.

Schedule 1 to the Regulations amends the Corporations Regulations 2007, Income Tax Assessment Regulations 1997, Retirement Savings Accounts Regulations 1997 and the Superannuation Industry (Supervision) Regulations (1994) to support the introduction of the new $1.6 million transfer balance cap, including:

  • expanding the circumstances in which the general obligation to provide a product disclosure statement within a particular period is deferred. This change applies where a trustee is required to create a new accumulation interest for a member as a result of complying with a commutation authority for an excess transfer balance amount
  • making minor technical amendments to the exceptions to the actuarial certificate requirements for segregated superannuation fund
  • 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.

Schedule 2 removes an exception for contributions to a constitutionally protected fund that previously operated to exclude these amounts from counting towards an individual’s concessional contributions cap.

Schedule 3 removes the fund-capped contribution limit restriction, which prevents superannuation funds from accepting a single non-concessional contribution (NCC) in excess of the NCC cap

Schedule 4 makes minor amendments to ATO and superannuation fund reporting requirements in relation to the new low income superannuation tax offset.

Schedule 5 prevents individuals 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

Schedule 6 removes the ability for individuals to elect to treat certain payments from a superannuation income stream as a lump sum for tax purposes.

Schedule 8 simplifies and consolidates the range of existing processes relating to release authorities

Schedules 7 and 9 make minor technical amendments to the tax law as a result of the removal of the anti-detriment benefit and to support the introduction of the total superannuation balance concept.

Note – the draft regulation also included a proposal to allow commutations from certain income streams, including market linked pensions, where an individual exceeded the transfer balance cap. It also proposed to remove the actuarial certificate requirements for an unsegregated superannuation fund. However, these amendments were not included in the final regulation.

Further information

Australian Government, Treasury Laws Amendment (Fair and Sustainable) Regulations 2017

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