Reversionary Transition to Retirement Income Stream proposal “positive”

The Government’s decision to release draft legislation regarding a Reversionary Transition to Retirement Income Stream (TRIS) is a “positive initiative,” according to the SMSF Association.

The legislation would ensure that a TRIS automatically transfers to eligible dependants on the death of the primary recipient. This would remove the compliance burden involved in ending then starting a new death benefit pension when the beneficiary had not met their own condition of release.

It would also give TRISs a 12-month delay for the transfer balance credit to occur on the death of an individual, which the Association said would give the beneficiary time to get their affairs in order.

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The proposal would give reversionary TRISs the same legal position as reversionary account-based pensions.

SMSF Association chief executive, John Maroney, commended the Government for acting quickly to further ensure that the 2016-17 Budget’s superannuation tax reform package was smoothly implemented.

He then called on the Government to consider the red-tape issues, of which the TRIS was one, put forward in the Association’s pre-budget submission.

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