The draft regulations amend the Superannuation Industry (Supervision) Regulations 1994 to provide new simplified standards for annuities and pensions and make other changes to the payment rules for superannuation benefits. These changes include removing the requirement for compulsory cashing of superannuation benefits for people over the age of 65 from 1 July 2007, and revised rules for the payment of superannuation death benefits.
The new minimum standards for pensions are an important element of the Government’s broader package of reforms to simplify superannuation. For income streams commencing on or after 20 September 2007, a single set of minimum standards will replace the current multiple sets of rules. All pensions that meet the new minimum standards will be taxed the same on payment, and earnings on assets supporting these pensions will be tax exempt.
The Government invites interested parties to provide comments on the draft regulations by Thursday, 1 February 2007.
For a copy of the Minister's press release, No 2006/096, 21 December 2006, go here
For a copy of the draft regulations and explanatory material, go here