Retirement phase income streams
Introduction to super income streams
Retirement phase income streams can take the form of pensions or annuities. For superannuation law purposes, there is generally little difference between a pension and an annuity as they are similar income streams but paid from different providers. Super funds generally provide pensions whereas annuities are paid under a contract with a life company or registered organisation.
Prior to the commencement of the superannuation reforms on 1 July 2017, all superannuation income streams qualified for a tax exemption on the earnings on assets supporting the income stream.
However as part of superannuation reform, a new concept has been introduced to make it clear that from 1 July 2017, not all superannuation income streams will be eligible for an earnings tax exemption.
From 1 July 2017, only 'retirement phase income streams' are eligible for an earnings tax exemption. In addition, only retirement phase income streams count towards the transfer balance cap
Last modified: Thursday, January 11, 2018