On Budget night, 9 May 2006, the Treasurer, Peter Costello, announced major reform to the superannuation system and released ‘A plan to simplify and streamline superannuation’. As a result, the rules for compulsory cashing of benefits have now changed. On 30 June 2006 modification declarations were registered (with effect during the period 10 May 2006 to 30 June 2007), removing the requirement on the trustee of a superannuation fund (including self managed superannuation funds) to compulsorily cash a member’s benefits where:
- the member is aged between 65 and 74 and does not meet the current work test, or
- the member is aged 75 or over.
This means a fund trustee is no longer required to cash the benefits of a member simply because they have reached a certain age.
For a copy of the ATO factsheet, go here