The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, has released draft superannuation income stream regulations and a draft explanatory statement for public consultation.
The regulations continue the implementation of the Government’s superannuation reforms and 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 regulations are intended to cover a range of innovative income stream products including deferred products, investment-linked pensions and annuities and group self-annuitised products.
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.
All interested parties are invited to make a submission by 12 April 2017.