Govt rethinks retirement legislation
The Federal Government has moved to amend legislation which could have frozen some investment earnings on income streams for retirees.
The move by the Government follows questions raised by the Australian Retirement Income Streams Association (ARISA) over the implications of the proposed changes.
The Federal Government has moved to amend legislation which could have frozen some investment earnings on income streams for retirees.
The move by the Government follows questions raised by the Australian Retirement Income Streams Association (ARISA) over the implications of the proposed changes.
Chairman Kieren Dell says ARISA raised the issue with the Government as to whether the implications of the proposed legislation were in-tentional. After consultation, it was established that the implica-tions were unintentional and amendments were announced by assistant treasurer Rod Kemp.
Prior to the amendments to the legislation, which is due to be en-acted on July 1, earnings from retirement income streams on non-preserved superannuation taken before age 65 would have to have been preserved until the retiree turned 65.
"The Government realised that the situation it would create would be ridiculous," Dell says.
AUTHOR
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
