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21 May 2021

Reducing red tape for superannuation funds – ECPI measures

The Morrison Government has today released exposure draft legislation to reduce red tape for superannuation funds by streamlining some administrative requirements for the calculation of exempt current pension income (ECPI). These reforms will reduce costs and simplify reporting for affected superannuation funds.

The draft legislation provides choice for superannuation fund trustees to use their preferred method of calculating ECPI where the fund is fully in the retirement phase for part of the income year but not for the entire income year.

The draft legislation will also remove a redundant requirement for superannuation funds to obtain an actuarial certificate when calculating ECPI, where the fund is fully in the retirement phase for all of the income year.

The exposure draft legislation and supporting materials are available on the Treasury website and stakeholders are encouraged to provide their feedback. Consultation will close on 18 June 2021.