The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, today released draft superannuation income stream regulations and an explanatory statement for public consultation.
The regulations, when made, will continue the implementation of the Government’s superannuation taxation 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.
“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,” Minister O’Dwyer said.
“The development of these new products is a precursor to the development of Comprehensive Income Stream Products for Retirement, or CIPRs.
“I encourage all interested stakeholders to provide their views so that we can give effect to these important reforms as effectively as possible.”
The exposure draft regulations and explanatory statement are available on the Treasury Consultation Hub.
Submissions are invited by 12 April 2017 and can be sent to superannuation@treasury.gov.au.