Budget changes to TTR
Financial planners will have to review the settings of clients utilising Transition to Retirement (TTR) arrangements as a result of the Federal Budget.
The Federal Budget has included the removal of the tax exemption on earnings of assets supporting TTR income streams from 1 July, next year.
The Budget documents note that this applies to individuals over preservation age but not retirement.
The Budget statements said that the measure would also remove a rule that allows individuals to treat certain superannuation income stream payments as lump sums for tax measures.
The announcement said the measure was estimated to have a gain to revenue of $640 million over the forward estimates period.
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