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  • Change to transition-to-retirement income streams

    Transition-to-retirement income streams (TRIS) are currently available to assist individuals to gradually move to retirement by accessing a limited amount of super. Previously, where a member receives a TRIS, the fund receives tax-free earnings on the super assets that support it.

    Effective 1 July 2017, the government removed the tax-exempt status of earnings from assets that support a TRIS that is not in the retirement phase. Earnings from assets supporting a non-retirement phase TRIS will be taxed at 15% regardless of the date the TRIS commenced.

    Members will also no longer be able to treat super income stream payments as lump sums for taxation purposes.

    The intent of this change is to ensure that TRIS are not accessed primarily for tax purposes but to support individuals who remain in the workforce.

    See also:

    • LCG 2016/10 Superannuation reform: capped defined benefit income streams – non-commutable, lifetime pensions and lifetime annuities
    • LCG 2017/1 Superannuation reform: capped defined benefit income streams – pensions or annuities paid from non-commutable, life expectancy of market-linked products
    Last modified: 23 Oct 2017QC 51335