The Morrison Government has amended the Income Tax Assessment Regulations 1997 (ITAR 1997) to confirm the meaning of ‘superannuation income stream benefit’.
The determination of whether a superannuation benefit is a superannuation lump sum or superannuation income stream benefit is a key factor in determining the tax treatment of the superannuation benefit.
This amendment allows superannuation funds to continue to claim the earnings-tax exemption on certain assets.
The Government has made amendments to ensure the superannuation tax law continues to operate as intended when originally drafted and is consistent with existing industry practice.
The amendments will ensure that the provisions concerning superannuation income stream benefits have always operated, and will continue to operate, as intended.