The public consultation document on the Government's transition to retirement policy was released today by Minister for Revenue and Assistant Treasurer, Mal Brough.
The transition to retirement policy was announced by the Treasurer on 25 February 2004 in A more flexible and adaptable retirement income system. From 1 July 2005, the measure will allow people who have not retired from the workforce to access their superannuation in the form of a non-commutable income stream, once they reach their preservation age.
'The transition to retirement policy is about providing greater flexibility and choice. Australians will have the option of retaining a connection with the workforce, rather than retiring prematurely simply to get access to their superannuation,' Mr Brough said.
'For example, a person might choose to continue in work on a part-time basis, and use part of their superannuation to supplement their employment income, instead of retiring from the workforce altogether. In this way, the policy will provide people with more flexibility in how they make the transition to retirement, ensuring they can retire when they are ready.'
The consultation document discusses and invites feedback on a number of issues associated with the transition to retirement policy. These include: the characteristics of the non-commutable income stream; whether a cap should apply to the amount of superannuation benefits a person can access; whether only part-time employees should have access to the policy; and whether it should be compulsory for superannuation funds to offer transition to retirement to their members.
'This is an important opportunity for the community to contribute to the design of a more flexible approach to retirement,' Mr Brough said. 'I encourage anyone interested in the transition to retirement initiative to make a submission to the Treasury.'
The consultation document is available on the Treasury website at www.treasury.gov.au. Treasury will accept submissions on the consultation document until 10 December.
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