Parliament passes new superannuation bill

Superannuation, SMSF, retirement income, retirement planning, retirement savings, wealth management, pension, Australian Senate, Australian house of representatives, Australian Parliament, Kelly O'Dwyer,

A bill that contains changes to the government’s superannuation tax reforms, including for limited recourse borrowing arrangements and transition to retirement income streams, has passed both houses of Parliament.

Treasury Laws Amendment (2017 Measures No. 2) Bill 2017 was approved by both the House of Representatives and the Senate on Thursday 15 June, and makes changes to parts of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016.

Minister for revenue and financial services Kelly O’Dwyer said the bill will support the integrity of the new transfer balance cap by “including a repayment of a borrowing under a limited recourse borrowing arrangement in the cap in certain circumstances”.

Some of the changes outlined in the bill also relax the prohibition on transition to retirement income streams (TRIS) ever being in the retirement phase. As a result, a TRIS will now be in the retirement phase if the member has satisfied a condition of release with a nil cashing restriction.

The reforms, Ms O’Dwyer said, will also ensure recipients of an existing structured settlement or personal injury order do not pay tax on their superannuation income streams as originally intended.

“As part of this bill, the Government has also refined changes to personal and corporate insolvency law made by the Insolvency Law Reform Act 2016,” she said.

“This change will reduce legal complexity, increase certainty for insolvency practitioners and remove unnecessary costs from insolvency proceedings.”

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