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.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
