• Improving the integrity of retirement income streams

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

    From 1 July 2017, the government will remove 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 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 for supporting members who remain in the workforce.

    See also:

    Summary of impacts for self-managed super 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.
    • A TRIS will need to be commuted and a new income stream commenced, to be entitled to ECPI.
    • There will be related accounting and reporting changes.
    • There is the potential for movement of assets to be able to comply.
    Last modified: 12 Apr 2017QC 51304