On 7 December 2024, changes were made to the law to allow people to exit certain legacy retirement products. Changes were also made to how reserves will be treated for contribution cap purposes.
Guidance is now available on our website for people considering commuting a legacy retirement product and for superannuation providers when applying the laws.
Relaxed commutation rules for legacy retirement products provides guidance on:
- which legacy retirement products can be commuted
- what happens when a legacy retirement product is commuted
- possible tax consequences.
Changes to reserve allocations provides guidance on:
- the correct contribution treatment for allocations from reserves before and after the change to the law
- how excluded allocations have changed
- the definition of a pension reserve.
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