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  • Improving the integrity of retirement income streams

    Transition to retirement income streams (TRIS) are 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. Earnings from assets supporting a TRIS will be taxed at 15% regardless of the date the TRIS commenced.

    Members are no longer 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 for the purpose of supporting individuals who remain in the workforce.

    See also:

    Summary impacts for APRA-regulated funds

    • Funds can no longer claim Exempt Current Pension Income (ECPI) from assets supporting a TRIS.
    • You will need to include income from assets supporting a TRIS in assessable income.
    • You can't allow a TRIS to morph into an account-based pension – when the fund starts claiming ECPI it has to be counted for the transfer balance cap.
    • There will related accounting and reporting changes.
    • There will be potential movement of assets to be able to comply.
    Last modified: 28 Sep 2017QC 51316