Further super refinements

Richard Gilbert

With just days to go before the Parliament rises ahead of the forthcoming Federal Election, the Government has delivered a widening of the social security income and asset test exemption on complying income streams.

The changes, confirmed yesterday, follow strong lobbying on the part of the financial services industry, led by the Investment and Financial Services Association(IFSA).

IFSA chief executive Richard Gilbert said the changes were welcome and represented a good result for Australians who wanted to move within the new Better Super regime because it added to the choice of options.

“These changes uphold the Government’s commitment to simplify and streamline superannuation whilst upholding the principles of neutrality and integrity in the superannuation system,” he said.

“For industry, these changes clarify a number of critical unfinished Better Super business items leading up to the 20 September deadline for income streams and will help facilitate the delivery of better services to consumers,” Gilbert said.

According to IFSA, the widening of the exemption will mean, amongst other things, that the spouse of a deceased member of a self-managed superannuation fund will be able to roll over into a new asset test exempt income stream.

As well, it will also provide flexibility in circumstances where superannuation funds change the features of a term allocated pension to the extent that it no longer meets the needs or expectations of members.