TRIS changes tipped to hit more Aussies than realised
The government’s proposal to remove the tax exemption from earnings of assets supporting transition to retirement income streams (TRIS) could have an impact that is broader than the government realised, according to one research house.
The change would hit more than the government’s apparent target of wealthier, big-balance fund members, according to Rice Warner.
Rice Warner estimates that members hold 580,000 TRIS accounts, supported by at least $40 billion in superannuation assets, as at June last year. Approximately half the money is held in SMSF accounts.
“The average balance of $69,000 is a modest average balance given that members receiving TRIS pensions are aged 56-64, with many holding the bulk of their super savings in pensions to maximise the current tax exemption,” Rice Warner said.
“Among the clear winners from this budget are the specialist financial superannuation advisers whose guidance should be in high demand – including in regard to TRIS pensions,” Rice Warner added.
“Those who do not feel that they can afford this advice, and are not in a position to understand an increasingly complex system for themselves, may find that their retirement outcomes fall well short of what they could have achieved.”