The Assistant Treasurer, Senator Rod Kemp, today announced that the Government will amend the superannuation legislation to clarify that the existing preservation arrangements, which do not require the preservation of earnings on income streams products, will continue to apply.
The Government became aware that the new preservation rules, to take effect from 1 July 1999, could have resulted in the preservation of earnings on income stream products. This was not the intended policy and the amendments will ensure the continuation of existing arrangements applying to the preservation of earnings on superannuation savings that have commenced to be paid in the form of an income stream.
The necessary amendments will take effect from 1 July 1999.
CANBERRA
14 June 1999
Contact Officers: Matthew Guy (02) 6277 7360