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  • Innovative retirement income stream products

    Previously there were rules restricting the development of new retirement income products.

    Effective 1 July 2017, the government removed these barriers by extending the tax exemption on earnings in the retirement phase to products such as deferred lifetime annuities and group self-annuitisation products.

    The intent of the change is to provide greater choice and flexibility for retirees to manage the risk that they outlive their retirement savings.

    Further information will be published when it becomes available.

    Summary impacts for APRA-regulated funds

    • Earnings tax exemption is available for eligible deferred products.
    • There will be a potential increase in members investing in new products.
    • The value of these products at the time ECPI can be claimed needs to be reported for the transfer balance cap.
    • You will need to be able to identify and report account balances for these new products in Member Contribution Statements (MCS) and on the Member Information eXchange (MIX).
    • Funds may also potentially create/develop products for clients.
    Last modified: 28 Sep 2017QC 51318