Powered by MOMENTUM MEDIA
subscribe to our newsletter

Green light on tax exemption for income products

Katarina Taurian
04 May 2016 — 1 minute read

The government has extended the tax exemption on earnings in the retirement phase to some retirement income products.

The government reaffirmed in last night’s budget that it is committed to removing “barriers to innovation” in the creation of retirement income products.

As a result, from 1 July 2017 the government intends to extend the tax exemption on earnings in the retirement phase to products such as deferred lifetime annuities and group self-annuitisation products.

Advertisement
Advertisement

The government intends to consult on how these products will be treated under the age pension means test.

“Rules and regulations currently restrict the development of new retirement income products,” the government said.

“These products could provide more flexibility and choice for Australian retirees, and help them to better manage consumption and risk in retirement. They can be of particular benefit for those who are concerned that they might outlive their superannuation fund savings,” the government said.

Green light on tax exemption for income products
smsf logo
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.